Chapter 16

1. Understand fractional reserve banking and 100-percent reserve banking
2. Be familiar with the different types of money and the function of money
3. Know what the federal reserve is responsible for and how it carries out its duties
4. Know how open market operations work

Chapter 17

1. Understand how inflation affects money
2. Understand the costs associated with inflation
3. Understand how price levels effect the value of money
4. Be able to calculate the velocity of money