Money and the Banking System The Federal Reserve and Monetary Policy

Lesson Purpose:

Banks and other financial intermediaries operate in capital markets that perform the important functions of coordinating the actions of savers and borrowers and facilitating the investment that is critical to a growing market economy.Additionally, the lending function of commercial banks is the means by which the money supply in our economy changes in response to the ups and downs of the business cycle.

This lesson focuses on the operation of the commercial banking system, and the mechanics of money creation through the lending process.It also looks at the operation of capital markets where interest (the price of money), creates incentives that affect the levels of saving, lending, and borrowing activities in the economy. An understanding of how banks create money is also a necessary pre-requisite for topic 12, which focuses on monetary policy and the Federal Reserve System.Money and the Banking System The Federal Reserve and Monetary Policy

Lesson Purpose:

Banks and other financial intermediaries operate in capital markets that perform the important functions of coordinating the actions of savers and borrowers and facilitating the investment that is critical to a growing market economy.Additionally, the lending function of commercial banks is the means by which the money supply in our economy changes in response to the ups and downs of the business cycle.

This lesson focuses on the operation of the commercial banking system, and the mechanics of money creation through the lending process.It also looks at the operation of capital markets where interest (the price of money), creates incentives that affect the levels of saving, lending, and borrowing activities in the economy. An understanding of how banks create money is also a necessary pre-requisite for topic 12, which focuses on monetary policy and the Federal Reserve System.

MAKE ME UNDERSTAND THE CONCEPT BY EXPLAINING THE CONCEPT AND SHOWING CALCULATION WHERE REQUIRED

Question eight

1.1. All of the company's elements that have a decisional, organizing, informational, motivational character, and through which the entire set of management processes and relationships are being exercised in ____________-order to achieve the best efficiency and the highest effectiveness - defines:

2. The decision that has direct consequences __________on the decisions, actions and behaviors of at least another person- is a decision____________

3. The key constitutive elements of the___________ decisional situation are__________

4. The golden triangle of organizing refers to the judicious connection of: a. tasks; b. activities; c. duties; d. competencies; e. responsibilities.

5. The functional areas of the company are: a. research-development; b. finance-accounting; c. commercial; d. organizing; e. planning; f. motivating; g. control-evaluation; h. human resources; i. coordinating; j. manufacturing/operations

6. The number of employees a manager __________-can efficiently and effectively manage represents:

7. The trajectory an information _________or a category of information follows between the sender and the receiver defines

8. The method used in management that consists in identifying the strengths and the weaknesses of the analysed area together with their respective causes, and that is finalized by making corrective or developmental suggestions - is named as:

9. The entrepreneurial-managerial method of designing and promoting a new business or of significantly developing an existing one, method that starts with identifying an economic opportunity and by which one determines the objectives that are to be accomplished, sizes and structures the main resources and activities, aiming to prove that it can be profitable and it is worth to be supported by the potential stakeholders - is:

10. The major deficiencies in the communication process (the most significant barriers to communication) can be: