Macroeconomics Module 22 And 24 Jeopardy Template

The Financial System	Financial Assets	Shifters Of Money Supply
100 What is a physical asset? A claim on a tangible object (such as a preexisting house)	100 What is a loan? Lending agreement between a lender and a borrower	100 If there is a recession, what should the FED do to the reserve requirement? Decrease the reserve ratio
200 What is a transaction cost? Expenses of actually putting together and executing a deal	200 What does it mean to default? Fail to make payments as specified by the loan or bond contract	200 What happens to AD when the reserve ratio is increased? AD decreases
300 What is a liquid asset? If it can be quickly converted to cash	300 What is the difference between a bond and a stock? A stock is a share in ownership of a company while a bond is an IOU issued by the borrower	300 What should the FED do to the discount rate to decrease money supply? Increase
400 What are the 3 tasks of a Financial System? Reducing transaction costs, reducing risks, and providing liquidity	400 What are 3 types of financial intermediaries? Mutual funds, pension funds, life insurance companies, and banks	400 Name the 3 shifters of Money Supply Setting Reserve Requirements, Lending Money to Banks and Thrifts, Open Market Operations
500 Name the 4 types of financial assets Stocks, bonds, loans, bank deposits	500 Which of the financial intermediaries helps resolves the issue of liquidity? Banks	500 The formula for the Money Multiplier 1 over reserve ratio

Macroeconomics Module 22 and 24

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