Ebook The economics of money, banking, and financial markets (7th edition): Part 2
➤ Gửi thông báo lỗi ⚠️ Báo cáo tài liệu vi phạmNội dung chi tiết: Ebook The economics of money, banking, and financial markets (7th edition): Part 2
Ebook The economics of money, banking, and financial markets (7th edition): Part 2
ch/tbpt&r15 Multiple Deposit Creation and the Money Supply ProcessPREVIEWAs we saw in chapter 5 and will see in later chapters on monetary theory, mov Ebook The economics of money, banking, and financial markets (7th edition): Part 2vementsin the money supply affect interest rales and the overall health of the economy and thus affect US all. Because of its far-reaching effects on economic activity. It is important to understand how the money supply is determined. Who controls it? What causes it to change? How might control of i Ebook The economics of money, banking, and financial markets (7th edition): Part 2t be improved? In this and subsequent chapters, we answer these questions by providing a detailed description of the money supply process. the mechaniEbook The economics of money, banking, and financial markets (7th edition): Part 2
sm that determines the level of the money supply.Because deposits at banks are by far the largest component of the money supply, understanding how thech/tbpt&r15 Multiple Deposit Creation and the Money Supply ProcessPREVIEWAs we saw in chapter 5 and will see in later chapters on monetary theory, mov Ebook The economics of money, banking, and financial markets (7th edition): Part 2es deposits, and describes the basic principles of the money supply, needed to understand later chaptersFour Players in the Money Supply ProcessThe "cast of characters" in the money supply story is as follows:1The central bank—the government agency that oversees the banking system and is responsible Ebook The economics of money, banking, and financial markets (7th edition): Part 2 for the conduct of monetary policy; in the United States, it is called the Federal Reserve System2Banks (depository institutions)—the financial interEbook The economics of money, banking, and financial markets (7th edition): Part 2
mediaries that accept deposits from individualsand institutions and make loans: commercial banks, savings and loan associations, mutual savings hanks,ch/tbpt&r15 Multiple Deposit Creation and the Money Supply ProcessPREVIEWAs we saw in chapter 5 and will see in later chapters on monetary theory, mov Ebook The economics of money, banking, and financial markets (7th edition): Part 2rom the depository institutions and institutions that issue bonds that are purchased by the depositor}' institutionsOf the four players, the central bank—the Federal Reserve System—is the most important. The Fed's conduct of monetary policy involves actions that affect its balance sheet (holdings of Ebook The economics of money, banking, and financial markets (7th edition): Part 2 assets and liabilities), to which we turn now.357358 p A R T IV Central Banking and the Conduct ot Monetary PolicyThe Fed’s Balance Sheetwww.fcdcralrEbook The economics of money, banking, and financial markets (7th edition): Part 2
cserc.gov /hoarddoc.s/rplcongrexx /an riualo l/dcfaul I .himSer dir rnnsl invnl Fnleral Reserve financial statement.1 he operation of the bed and its ch/tbpt&r15 Multiple Deposit Creation and the Money Supply ProcessPREVIEWAs we saw in chapter 5 and will see in later chapters on monetary theory, mov Ebook The economics of money, banking, and financial markets (7th edition): Part 2at includes just four Herns that are. essential lo our understanding of the money supply process.1FEDERAL RESERVE SYS 1 EMAssetsGovernment securitiesDiscount loansLiabilitiesCurrency in circulation Reserves□abilities»'wwjõílifrhjĩrsứcKar.ch /econed/rnuseuin'A virtual tour or the Federal Reserve's mo Ebook The economics of money, banking, and financial markets (7th edition): Part 2ney museum.rhe two liabilities on the balance sheet, currency in circulation and reserves, are often referred to as the monetary liabilities of the EeEbook The economics of money, banking, and financial markets (7th edition): Part 2
d. They are an important part of the money supply story, because increases in cither or both will lead to an increase in the money supply (everything ch/tbpt&r15 Multiple Deposit Creation and the Money Supply ProcessPREVIEWAs we saw in chapter 5 and will see in later chapters on monetary theory, mov Ebook The economics of money, banking, and financial markets (7th edition): Part 2Treasury currency in circulation, primarily coins) is called the monetary base. When discussing the monetary base, we will focus only on the monetary liabilities of the Fed because the monetary liabilities of the ueasury account lor less then 10% of the base -Ì. Currency in circulation. The Fed issu Ebook The economics of money, banking, and financial markets (7th edition): Part 2es currency (those green-and-gray pieces of paper in your wallet that say “Federal Reserve Note” at the top). Currency in circulation is the amount ofEbook The economics of money, banking, and financial markets (7th edition): Part 2
currency' in the hands of the public. (Currency held by depository' institutions is also a liability of the Fed. but is counted as pari of the reservch/tbpt&r15 Multiple Deposit Creation and the Money Supply ProcessPREVIEWAs we saw in chapter 5 and will see in later chapters on monetary theory, mov Ebook The economics of money, banking, and financial markets (7th edition): Part 2ith Federal Reserve notes; that is, they pay off IOƯS with other lOUs. Accordingly, if you bring a $100 bill to the Federal Reserve and demand payment, you will receive two $50s, five $20s. ten SI Os. or one hundred Si bills.People, are more, willing to accx-.pt lOUs from the Fed than from you or me Ebook The economics of money, banking, and financial markets (7th edition): Part 2. Ixnause Federal Reserve notes are a recognized medium of exchange; that IS, they are. accepted as a means of payment and so function as money. UnforEbook The economics of money, banking, and financial markets (7th edition): Part 2
tunately, neither you nor 1 can convince people that our lOUs are worth anything more than the paper they are written on?*A del ailed dĩsciiM.ii II I ch/tbpt&r15 Multiple Deposit Creation and the Money Supply ProcessPREVIEWAs we saw in chapter 5 and will see in later chapters on monetary theory, mov Ebook The economics of money, banking, and financial markets (7th edition): Part 2 ibis Ixxdc's well Mir al wwwawcinn/niidikin"Il IS also sale 10 Ignore the Treasury's monetary liabilities when discussing the monetary base because the heasury cannnl actively supply ils innnelary liahdilie.s Io I hr ecnixuny dur Io legal reslnclinnsJThc currency Item on our balance sheet refers on Ebook The economics of money, banking, and financial markets (7th edition): Part 2ly to currency in circutoiwn; dial IS. the amount tn the hands ol die puhlic ( Currency dial lias hern printed by dir U.S Rureau Ilf liigraving and PrEbook The economics of money, banking, and financial markets (7th edition): Part 2
inting is nnl aulomal rally a li.i liilily of dir led For example. I'onsidri ihr ini|xirtaniT of having SI million Ilf your own toils printed up You gch/tbpt&r15 Multiple Deposit Creation and the Money Supply ProcessPREVIEWAs we saw in chapter 5 and will see in later chapters on monetary theory, mov Ebook The economics of money, banking, and financial markets (7th edition): Part 2not affc-cl your indebtedness You care ixily about the $ I (X> of liabilities from the $ 100 of circulated 10ƯS. The same reasoning applies for the Fed in regard to Its Federal Reserve notes.For similar reasons, the currency component OÍ die money supply, no matter how II is dehned. Includes only cu Ebook The economics of money, banking, and financial markets (7th edition): Part 2rrency In circulation. It docs not include any additional currency that is not yet in the hands ol the public. The facl thai currency lias been printeEbook The economics of money, banking, and financial markets (7th edition): Part 2
d hill IS nol circulating means that it is not anyone’s asset or liability and thus cannot affect anyone's behavior. Therefore, it makes sense not to ch/tbpt&r15 Multiple Deposit Creation and the Money Supply ProcessPREVIEWAs we saw in chapter 5 and will see in later chapters on monetary theory, movch/tbpt&r15 Multiple Deposit Creation and the Money Supply ProcessPREVIEWAs we saw in chapter 5 and will see in later chapters on monetary theory, movGọi ngay
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