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2 cards from this section. Quick, good the night before a test.
What is M0 in the context of the money supply?
Think about cash and coins!
List two components of M1.
Consider what money you can easily use.
What is included in M2?
Think of it as a combination of cash and savings.
Is the following statement true or false? 'An increase in the reserve ratio decreases the money supply.'
Higher reserve ratio - what does it mean for lending?
Discuss how changes in consumer savings behavior can impact the money supply.
Think about how much money flows in versus out.
Evaluate the role of the central bank in controlling inflation and how it relates to the money supply.
How does adjusting rates affect spending and saving?
4 more questions in this section. Enroll free to practise them all.
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