BUS 082 Lecture Notes - Lecture 10: Reserve Requirement, Federal Deposit Insurance Corporation, Openmarket
5 Aug 2020
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Document Summary
Accepted as payment for products and resources. Single standard for assigning and comparing values of products and resources. Holds purchasing power over time, it is saved with the intent of future use. If supply is high, value goes down and prices go up. If supply is low, value goes down and prices go. Why measure the money supply? total amount of money available at a certain time. Economic implications too much money supply > prices go up > inflation. Money supply too low > prices down > deflation. Value of the dollar re imports and exports. Board of governors (4 members + chairman) Federal reserve banks (12 regions, main one in nyc) Member banks (all national and state-chartered banks) Controls the supply of money with monetary policy. Manages regional and national check-clearing procedures and distributes currency. Supervises the federal deposit insurance of commercial banks in the federal reserve system. Banks must keep a certain amount of money in their reserve.
