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FILL IN THE BLANIC Please add the appropriate word or words to complete the sentencea 1 The market de the dotermedlary between to dividual householde
FILL IN THE BLANIC Please add the appropriate word or words to complete the sentencea 1 The market de the dotermedlary between to dividual householde or firme who demand money and the foetitu- tion that supplesit 2 Almost soything can be as long as it is widely accepted and relatively scarce. 3. The primary purpose of is to facilitate exchangein markets d There are three badcfunction: of money: (1) amedium of . (2) a store of , and (3) a standard accounting 5. The function of money as a store of value de related to therate of inflation. of money are based on two primary detectlong, Houldity sod amount 7. Liquidity refers to theability ofa(o) to be easilyconverted into money. B. Money demand ie the willingness and ability of to dyldual households and firme to hold very assets 9. Price level and RCDP are the twopdmary determinants that money demand 10. For banks their dient's deposits represent andloans to customers are . 11 In the LS. there dealo) reserve banking system This means that banks keep than 100 percent of deposits to Cach 12 TheFRB gets the reserve ratio mandating the percentage of depoelte that must be heldin atal toLee 13. If a bank has excess reserves the may purchasemore , loan it to another bank that has fallen below thet re- serve requirement, or just keep the extrareserves for another busdoes: day. 14 The multiplierde the proportion between the secondary change to the money supply and the boltial change to the reserve ratio 15. Themoney multiplier describes how much a change do reserves affects deposite 16. The equation of exchange de a theory that connects the of money with COP. 17. According to the equation of exchange, If the velocity of money is 4 and the money supplyle $2000, then CIP LE $ - 18. The quantity theory of money states there fea(o) relationship between theamount of money, price level and Locome ( or output )
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