2 various things cash is - ANS-coins and call for deposit
2008 Financial Crisis Step 1 - ANS-Bear Stearns absorbed by using JPMorgan
2008 Financial Crisis Step 2 - ANS-Fannie & Freddie absorbed by using US treasury
2008 Financial Crisis Step 3 - ANS-Lehman Brothers announces bankruptcy
2008 Financial Crisis Step four - ANS-TARP brought by means of Hank Polson
2008 Financial Crisis Step five - ANS-TARP surpassed
2008 Financial Crisis Step 6 - ANS-Dodd-Frank Banking Regulation
3 reasons to maintain cash - ANS-1. Liquidity
2. Precautionary
three. Speculative
property are - ANS-required reserves, extra reserves, gov securities, loans to clients
causes of 2008 economic crisis - ANS-Bear Sterns is absorbed into JP Morgan, Fanny and
Freddie absorbed by using the Fed, and Lehman Brothers affirming financial ruin
Commodity Money - ANS-is a way of change and can typically be used for other matters as well
(ex timber, meals, etc) has a secondary use besides change.
Contractionary monetary coverage - ANS-bargain price will increase
reserve necessities boom
open market income
demand deposits - ANS-money humans have deposited into the financial institution
bargain price - ANS-the price the fed prices for a mortgage
Dodd Frank Banking regulation - ANS-limited banks
easy money method - ANS-that anyone should get a mortgage, low interest charges
extra reserves - ANS-reserves the financial institution holds however isn't always required to
maintain
Expansionary economic coverage - ANS-mark downs decrease
reserve requirements decrease
open marketplace purchases
extrapolative expectations - ANS-are irrational, completely observe the beyond to decide what's
going to occur in the future. Self gratifying.
Extrapolative expectations - ANS-are self fullfilling
Fed budget price - ANS-the fee for bank to bank loans
federal budget charge - ANS-financial institution to financial institution charge
Fiat Money - ANS-has no intrinsic price (ex paper money)
Formula for Required Reserves - ANS-rr*DD=RR
herding - ANS-then you see a person doing some thing that looks to be profitable or beneficial
you need to join in too
How many human beings are at the Board of Gov? - ANS-7
How many human beings are on the Fed Open Market Committee? - ANS-12
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