Documents 31 Money, Banking, and Financial Institutions McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill...

Functions of Money Medium of exchange Used to buy/sell goods Unit of account Goods are valued in dollars Store of value A place to store wealth. LO1 31-* Money Definition…

Documents 33 Monetary Policy McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights...

Interest Rates The price paid for the use of money Many different interest rates Speak as if only one interest rate Determined by the money supply and money demand LO1 33-*…

Documents Interest Rates and Monetary Policy Chapter 34 McGraw-Hill/IrwinCopyright © 2015 by McGraw-Hill...

Interest Rates and Monetary Policy Chapter 34 McGraw-Hill/Irwin Copyright © 2015 by McGraw-Hill Education. All rights reserved. Interest Rates The price paid for the use…

Documents How does a change in money supply affect the economy? Relevant reading: Ch 13 Monetary policy.

Ch 15 Monetary policy How does a change in money supply affect the economy? Relevant reading: Ch 13 Monetary policy The central bank of the United States The Federal Reserve…