Question 1 You deposit $100 in your bank The bank is required to hold 90 of all such deposits Walk through the process of your bank creating money Go through at least three transactions including the numbers Show your work and explain Question 2 How would a doubling of velocity affect Real and Nominal GDP, assuming the money supply does not change Question 3 You are at a bar explaining the monetary system to your best friend who asks you Exactly what backs our currency What do you tell the person Question 4 Hypothetically, the United States enters another significant recession How might being on a gold standard, where the Federal Reserve doesn't have the ability to create money, affect the length and severity of the recession Question 5 Again, the United States is in a hypothetical recession Except for this time, the Federal Reserve does have the ability to create money Contrast this with the response to question 1

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Question 1   You deposit $100 in your bank  The bank is required to hold 90  of all such deposits  Walk through the process of your bank  creating  money  Go through at least three transactions   including the numbers  Show your work and explain Question 2   How would a doubling of velocity affect Real and Nominal GDP, assuming the money supply does not change  Question 3  You are at a bar explaining the monetary system to your best friend who asks you   Exactly what backs our currency   What do you tell the person  Question 4   Hypothetically, the United States enters another significant recession  How might being on a gold standard, where the Federal Reserve doesn't have the ability to create money, affect the length and severity of the recession  Question 5   Again, the United States is in a hypothetical recession  Except for this time, the Federal Reserve does have the ability to create money  Contrast this with the response to question 1

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Question 1 - You deposit $100 in your bank. The bank is required to hold 90% of all such deposits. Walk through the process of

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