Professional Documents
Culture Documents
Money Supply
CROSSWORD 1
across 2
2 Open market transactions, discount rate,
example
down
ACROSS
2. Money supply
6. Base
7. Intermediate
11. Greenspan
DOWN
1. Fund rate
3. Reserve
5. Credit
8. Discount
10. FRB
fill-in questions
1. A bank’s total reserves are made up of both excess and required reserves.
2. The interest rate charged by the Fed to member banks is called the discount rate
3. The rate that one bank charges another to borrow its excess reserves is called the secondary
reserves.
4. The ratio of the money supply to the money base is called the money multiplier
6. The ratio of currency to bank deposits is called the currency deposit ratio
7. The ratio of bank reserves to bank deposits is called the reserve ratio
8. The Federal Deposit Insurance insures bank deposits, so that depositors get paid even if a bank
fails.
9. The Fed mostly uses open market operations to control the money supply.
10. The money supply increases more than the monetary base when the Fed buys bonds because of
fractional-reserve banking.