|
|
Macroeconomics | © John Petroff Source: PEOI |
| No rated * * * * * | Resize -A +A |
Assignment #1:
Prove that money
is created when banks issue loans. Go through
daily operations of banks and confirm your proof.
Assignment #2:
Explain why the
monetary multiplier takes place. Give formula.
Comment about its size.
Assignment #3:
Show the key role
of bank's excess reserves for money creation.
Conclude with an indication on how to control money supply.
Assignment #4:
Explain open market
operations. Show why this is the most
popular tool for control of money supply. List minor tools.
Assignment #5:
List and explain
the various shortcomings of monetary policy.
Conclude with the policy dilemma. (Use historical examples).
[Your opinion is important to us. If you have a comment, correction or question pertaining to this chapter please send it to comments@peoi.org .]
Return to Chapter 12 MONETARY POLICY