Unit 4 Macroeconomics Jeopardy Template

The Financial Secto	Financial Assets	Shifters of Money supply	Money	Random
100 A claim in a tangible object Physical asset	100 Lending agreement between a lender and a borrower Loan	100 If there is a recession, the FED should do this to reserve requirement Decrease the reserve requirement	100 Something that performs the functions of money and has intrinsic value Commodity Money	100 Why would the FED want to slow down the economy To fight inflation
200 Expenses of actually putting together and executing a deal Transaction cost	200 Failure to make payments as specified by the loan or bond contract default	200 What happens to AD when the reserve ratio is increased Decreases	200 Who is on the $2 bill? Jefferson	200 The percent of deposits that banks must hold in reserve Reserve Requirement
300 What is a liquid asset? If it can be easily accessed or converted to cash	300 Difference between a stock and bond A stock is 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 the money supply? Increase	300 Inflation does what to purchasing power? Decreases	300 Equation for nominal interest rates Real interest rate + expected inflation
400 What are the 3 tasks of the financial system? Reduce risks, reduce transaction costs, provide liquidity	400 A type of financial intermediary Mutual funds, pension funds, life insurance companies, banks	400 Name the 3 shifters of money supply setting reserve requirements, lending money to banks and thrifts, open market operations	400 Two things that make money effective Generally accepted, scarce, portable and divisible	400 Two supply shifters for Loanable Funds Market Changes in private savings behavior, changes in public savings, changes in foreign investment, changes in expected profitability
500 Name the 4 types of financial assets Stocks, bonds, loans, bank deposits	500 Type of financial intermediary that helps to resolve issue of liquidity Banks	500 Formula for the money multiplier 1 over reserve ratio	500 What is it called when before trade can occur, each trader has to have something the other wanted Double Coincidence of Wants	500 Relationship between interest rates and bond prices Inverse

Unit 4 Macroeconomics

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