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The supply of loans comes
primarily from savings accounts.
medium of exchange
A(n) ________ is an item that is widely accepted as payment for goods and services.
Monetary policy
________ is the use of regulations or actions by the central bank to influence the money supply.
Contractionary monetary policy
________ includes actions designed to reduce the money supply, including selling securities, raising the discount rate, and raising the required reserve ratio.
required reserves
The dollar amounts that a bank is required to hold as reserves
negative relationship
The ________ between the interest rate and die quantity of loans demanded reflects the law of demand.
money multiplier
The ________ tells the maximum amount that the money supply can increase for a given amount of excess reserves loaned out.
total reserves
A bank's ________ are deposits that it has received but not lent out.
M1 money supply
The ________ includes money in circulation: cash, demand deposits, travellers checks, and other checkable deposits.
Barter trading
________ is the trading of goods and services directly for other goods or services, without using money.
interest rate is below equilibrium
the quantity of loans demanded will be higher than the quantity of loans supplied, and there will be a shortage of loans available.
Expansionary monetary policy involves
actions to increase the money supply, including lowering the discount rate, buying securities, or reducing the required reserve ratio.
The discount rate
is the interest rate that the Federal Reserve charges banks for loans.
Note 
Flashcard (23)