1. Why are bank accounts included in our definition of the money supply?

2. While the government prints currency, the rest of our money is created by the banks. How do banks create this new money?

4. If the Required Reserve Ratio is 25%, what is the money multiplier?

5. RESEARCH PROJECT on Class Inequality. While most households hold only a small amount of money in their accounts, the banking system does contain an enormous amount of money representing other people's wealth. What is the July 2020 (seasonally adjusted) measure of the M-2 money supply?

See https://www.federalreserve.gov/releases/h6/current/default.htm

6.RESEARCH PROJECT on Class Inequality. The Banks seem to be getting richer and more powerful. As of July 2020, what are their Total Reserves, Required Reserves, and Excess Reserves?

See https://www.federalreserve.gov/releases/h3/current/default.htm

7. RESEARCH PROJECT on Class Inequality. While many of us confront credit card interest rates over 20%, another advantage for banks is their outrageously low borrowing costs. Approximately, what is the August 2020 effective Federal Funds Rate? See https://www.federalreserve.gov/releases/h15/

8.The speculative demand for money is an inverse relationship between interest rates and the demand for money. Please explain why?

9.RESEARCH PROJECT. A liquidity trap is a situation where a portion of the money demand curve becomes horizontal; people are willing to hold unlimited amounts of money at some low interest rate. Some say this situation occurred from December 16, 2008 until December 17, 2015 because the federal funds rate target hit its lower bound. What was that target range?

See https://www.federalreserve.gov/monetarypolicy/openmarket.htm