#1-3 (page 61) Distinguish between and organized exchange and an over-the-counter market, market orders and limit orders, brokers and securities dealers Explain why investors should not expect to outperform the market on a consistent basis. Contrast long and short positions on stock Explain how deposits in commercial banks lead to a multiple expansion in the money supply Define inflation , deflation and recession . How is each measured and why inflation is associated with higher interest rates? Illustrate how the tools of monetary policy are used to affect the supply of money and credit. Which tool is the most important