Textbook Notes (368,401)
United States (206,023)
Economics (193)
ECON 351 (21)
Chapter 14

Chapter 14_Fed Balance Sheet and Money Supply Process.docx

1 Page
131 Views
Unlock Document

Department
Economics
Course
ECON 351
Professor
Frank Sorokach
Semester
Fall

Description
Chapter 14: Federal Reserve’s Balance Sheet and Money Supply Process  Federal Reserve’s Balance Sheet - How money supply determined via three actors: 1. Federal Reserve – responsible for controlling money supply and regulating banking system 2. Banking System – create the checking accounts that are the most important component of M1 measures of the money Supply 3. Nonbank Public – refers to all households and firms other than banks and decides the form in which they wish to hold money for instance, as currency or as checking account balances  The Monetary Base - sum of bank reserves and currency in circulation - Monetary Base = Currency in Circulation + Reserves of Banks 1. Currency in Circulation - paper money circulating outside of bank 2. Vault Cash - currency held by banks 3. Currency in M1 – currency held by the nonbank public - Currency in M1 = Currency in Circulation – Vault cash 4. Bank Res
More Less

Related notes for ECON 351

Log In


OR

Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


OR

By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.


Submit