The Federal Reserve (Fed) is the central bank of the United States whose responsibilities include managing monetary policy. The Fed uses three main tools to implement monetary policy - open market operations, reserve requirements, and the discount rate. Through open market operations, the Fed buys and sells government securities to influence the money supply. To stimulate the economy during difficult times, the Fed would expand the money supply by buying securities. Conversely, selling securities would contract the money supply. The Fed also uses reserve requirements and the discount rate to influence interest rates and the money supply in pursuit of either easy or tight monetary policy.
The document discusses several topics related to money and economics:
1. It defines money and describes its main functions as a medium of exchange, store of value, and standard of value. Throughout history, various commodities have served as money.
2. Modern fiat money is no longer backed by gold or silver but is accepted due to trust in governments. The money supply includes currency as well as checkable deposits and other liquid assets.
3. Banks play a key role in money creation through fractional reserve banking by lending out deposits. The Federal Reserve influences monetary policy through tools like open market operations and interest rates.
This document discusses monetary policy and the role of the Federal Reserve. It defines monetary policy as how the Federal Reserve influences the money supply to bring the country out of recession or inflation. It describes the Federal Reserve as the national system of banks that controls the money supply and economy. The Federal Reserve uses three tools - the reserve requirement, discount rate, and open market operations - to adjust the money supply and influence interest rates. Raising the money supply through lowering reserve requirements, rates, and buying bonds can help stimulate the economy during a recession, while lowering the money supply through the opposite actions can help curb inflation.
This document discusses monetary policy and the role of the Federal Reserve. It defines monetary policy as how the Federal Reserve influences the money supply to bring the country out of recession or inflation. It describes the Federal Reserve as the national system of banks that controls the money supply and economy. The Federal Reserve uses three tools - the reserve requirement, discount rate, and open market operations - to expand or contract the money supply and thus influence economic growth or slowdown. During recessions, the Fed engages in easy money policies like decreasing the reserve requirement and discount rate and buying bonds to increase the money supply. During inflation, it does the reverse through tight money policies.
This document discusses monetary policy and the role of the Federal Reserve. It defines monetary policy as how the Federal Reserve influences the money supply to bring the country out of recession or inflation. It describes the Federal Reserve as the national system of banks that controls the money supply and economy. The Federal Reserve uses three tools - the reserve requirement, discount rate, and open market operations - to expand or contract the money supply and thus influence interest rates and spending levels in the economy. Raising the reserve requirement and discount rate and selling bonds decreases the money supply to curb inflation, while lowering them and buying bonds increases the money supply to boost a recession-plagued economy.
Money, banking, and financial institutionssajal islam
The document discusses several key concepts related to money and banking:
1. It defines money as having three main functions: medium of exchange, unit of account, and store of value.
2. It explains the different measures of money supply (M1, M2, M3) and what types of assets are included in each measure.
3. It discusses what gives money its value, including acceptability, being declared legal tender, and maintaining relative scarcity through central bank management of the supply.
The document discusses several topics related to money and economics:
1. It defines money and describes its main functions as a medium of exchange, store of value, and standard of value. Throughout history, various commodities have served as money.
2. Modern fiat money is no longer backed by gold or silver but is accepted due to trust in governments. The money supply includes currency as well as checkable deposits and other liquid assets.
3. Banks play a key role in money creation through fractional reserve banking by lending out deposits. The Federal Reserve influences monetary policy through tools like open market operations and interest rates.
This document discusses monetary policy and the role of the Federal Reserve. It defines monetary policy as how the Federal Reserve influences the money supply to bring the country out of recession or inflation. It describes the Federal Reserve as the national system of banks that controls the money supply and economy. The Federal Reserve uses three tools - the reserve requirement, discount rate, and open market operations - to adjust the money supply and influence interest rates. Raising the money supply through lowering reserve requirements, rates, and buying bonds can help stimulate the economy during a recession, while lowering the money supply through the opposite actions can help curb inflation.
This document discusses monetary policy and the role of the Federal Reserve. It defines monetary policy as how the Federal Reserve influences the money supply to bring the country out of recession or inflation. It describes the Federal Reserve as the national system of banks that controls the money supply and economy. The Federal Reserve uses three tools - the reserve requirement, discount rate, and open market operations - to expand or contract the money supply and thus influence economic growth or slowdown. During recessions, the Fed engages in easy money policies like decreasing the reserve requirement and discount rate and buying bonds to increase the money supply. During inflation, it does the reverse through tight money policies.
This document discusses monetary policy and the role of the Federal Reserve. It defines monetary policy as how the Federal Reserve influences the money supply to bring the country out of recession or inflation. It describes the Federal Reserve as the national system of banks that controls the money supply and economy. The Federal Reserve uses three tools - the reserve requirement, discount rate, and open market operations - to expand or contract the money supply and thus influence interest rates and spending levels in the economy. Raising the reserve requirement and discount rate and selling bonds decreases the money supply to curb inflation, while lowering them and buying bonds increases the money supply to boost a recession-plagued economy.
Money, banking, and financial institutionssajal islam
The document discusses several key concepts related to money and banking:
1. It defines money as having three main functions: medium of exchange, unit of account, and store of value.
2. It explains the different measures of money supply (M1, M2, M3) and what types of assets are included in each measure.
3. It discusses what gives money its value, including acceptability, being declared legal tender, and maintaining relative scarcity through central bank management of the supply.
The Federal Reserve and Monetary Policy.pptPadmaN24
The Federal Reserve uses monetary policy tools to influence the money supply and interest rates in order to stabilize and grow the economy. Its main tools are open market operations, adjusting reserve requirements, and setting the discount rate. Increasing the money supply through actions like bond purchases and rate cuts pursues an "easy money" policy aimed at stimulation, while decreasing the money supply through bond sales and rate hikes constitutes a "tight money" policy aimed at slowing growth. Proper timing is important, as there are lags before monetary policy takes full effect.
The FED and its influence on Money and CreditCha Almaida
The Federal Reserve System is the central bank of the United States. It was created in 1913 to provide a safer and more stable monetary and financial system. The Fed has several key functions including conducting monetary policy, promoting financial stability, and overseeing banks. It uses various tools like open market operations, adjusting reserve requirements and interest rates to influence the money supply and achieve its goals of maximum employment, stable prices and moderate long-term interest rates.
The document discusses monetary policy and how it affects the economy. It defines money and describes the different components that make up the money supply. Commercial banks engage in fractional reserve banking by keeping only a percentage of deposits on hand while lending out the rest. The Federal Reserve System acts as the central bank that implements monetary policy tools, such as open market operations and reserve requirements, to influence the money supply and control inflation. Expanding the money supply through more accommodative monetary policy can stimulate the economy by increasing aggregate demand, while contracting the money supply through restrictive policy reduces demand and prices.
Money serves as a medium of exchange, unit of account, and store of value in an economy. Bank Negara Malaysia (BNM) regulates Malaysia's monetary system and controls the money supply through various tools, though its control is imperfect as it cannot directly determine deposit and lending amounts by banks and households. BNM was established in 1959 and oversees currency issuance, monetary policy, and payment systems in Malaysia.
- Money refers to assets that are regularly used to purchase goods and services, and serves three main functions: as a medium of exchange, a unit of account, and a store of value.
- There are two main kinds of money: commodity money, which has intrinsic value, and fiat money, which derives its value by government decree.
- In the US, money includes currency in circulation as well as demand deposits that can be accessed through checks or ATM withdrawals. The Federal Reserve oversees and regulates the US monetary system and money supply through tools like open market operations and setting reserve requirements.
Money serves as a medium of exchange, unit of account, and store of value. The Federal Reserve regulates the US monetary system and controls the money supply through open market operations and by adjusting reserve requirements and interest rates. Banks increase the money supply by lending out deposits, though the Fed has imperfect control as it cannot dictate lending or deposit amounts.
The document summarizes key concepts about money, the money supply, and monetary policy in the United States. It explains that the US dollar is issued by the Federal Reserve and backed by the US government. It describes how the Federal Reserve, made up of the Board of Governors and regional banks, implements monetary policy to control interest rates through managing the money supply. It also outlines how money serves important functions as a medium of exchange, unit of account, and store of value in the US economy.
The document discusses the relationship between a country's Monetary Policy Rate (MPR) and corporate performance. It explains that the MPR is the official interest rate set by a country's central bank to influence economic growth and price stability. Lowering the MPR makes borrowing cheaper for businesses, which can spur investment and economic activity. However, raising rates makes borrowing more expensive and can discourage business investment and cause stock prices to fall. The document analyzes how changes to the MPR impact factors like business borrowing, strategic planning, and stock market performance.
This document discusses central banking and the conduct of monetary policy. It covers topics such as the structure and functions of central banks, the tools used to conduct monetary policy including interest rates, reserve requirements, and open market operations, and how central banks influence monetary conditions in an economy. It also discusses the money supply process, determinants of money supply, and classification of monetary policy multipliers.
The foreign exchange market involves the daily global purchase and sale of national currencies totaling $4 trillion per day. It has experienced huge growth recently and vastly exceeds other financial markets in size. While the forex market includes spot transactions, it is largely composed of derivatives contracts used to hedge currency risk. For more information on trading in this massive market, the document recommends visiting the website FX-Arabia.
The document discusses the functions and types of money, including how money serves as a medium of exchange, unit of account, and store of value. It describes the different components that make up the US money supply, such as currency, demand deposits, savings deposits, and money market funds. The document also provides an overview of the Federal Reserve System, including its structure with the Board of Governors and regional Federal Reserve Banks. It explains how the Federal Reserve uses open market operations, reserve requirements, and interest rates to influence the US money supply and achieve its monetary policy goals.
The document discusses monetary policy in the Philippines. It describes how the Bangko Sentral ng Pilipinas (BSP), as the country's central bank, implements monetary policy through tools like open market operations, reserve requirements, and interest rates. It also outlines the BSP's objectives to promote price stability and economic growth. The BSP governs monetary policy under the guidance of its Monetary Board and Governor.
This document discusses the monetary system and the role of money and central banking. It explains that the Federal Reserve regulates the US monetary system and controls the money supply through tools like open market operations, reserve requirements, and interest rates. Commercial banks also influence the money supply through fractional-reserve banking, where they hold a portion of deposits as reserves and lend out the rest, expanding the overall money supply through the money multiplier effect.
This document discusses the monetary system and the role of money and central banking. It explains that the Federal Reserve regulates the US monetary system and controls the money supply through tools like open market operations, reserve requirements, and interest rates. Commercial banks also influence the money supply through fractional-reserve banking, where they hold a portion of deposits as reserves and lend out the rest, expanding the overall money supply through the money multiplier effect.
This document discusses the monetary system and the role of money and central banking. It explains that the Federal Reserve regulates the US monetary system and controls the money supply through tools like open market operations, reserve requirements, and interest rates. Commercial banks also influence the money supply through fractional-reserve banking, where they hold a portion of deposits as reserves and lend out the rest, expanding the overall money supply through the money multiplier effect.
The document provides an overview of money and banking concepts including the functions of money, types of money, and properties of money. It also summarizes the role of the Federal Reserve in regulating the US money supply through tools like open market operations, changing reserve requirements, and adjusting interest rates. The Federal Reserve aims to promote price stability and maximum employment through its monetary policy decisions.
The document discusses the monetary system and the role of money and central banking. It describes how money serves as a medium of exchange, unit of account, and store of value. It explains how the Federal Reserve regulates the US monetary system by controlling the money supply through tools like open market operations, reserve requirements, and interest rates. It also discusses how fractional-reserve banking allows banks to create money when they issue loans.
This chapter introduces organizational behavior and its goal of applying scientific knowledge to improve organizational effectiveness. It discusses how OB systematically studies individual, group, and organizational factors to better understand workplace behaviors. The chapter also outlines challenges facing modern workplaces and how OB can help managers address issues like diversity, innovation, and work-life balance.
This document defines inflation as an increase in the average price level of all products in an economy. It discusses how economists measure inflation using tools like the Consumer Price Index (CPI) and Producer Price Index (PPI). The CPI specifically tracks the prices of goods in a market basket and is used to calculate inflation rates. Causes of inflation include increases in aggregate demand and costs, as well as growth in the money supply. Effects of inflation are a decrease in purchasing power, the value of real wages, and savings.
The Federal Reserve and Monetary Policy.pptPadmaN24
The Federal Reserve uses monetary policy tools to influence the money supply and interest rates in order to stabilize and grow the economy. Its main tools are open market operations, adjusting reserve requirements, and setting the discount rate. Increasing the money supply through actions like bond purchases and rate cuts pursues an "easy money" policy aimed at stimulation, while decreasing the money supply through bond sales and rate hikes constitutes a "tight money" policy aimed at slowing growth. Proper timing is important, as there are lags before monetary policy takes full effect.
The FED and its influence on Money and CreditCha Almaida
The Federal Reserve System is the central bank of the United States. It was created in 1913 to provide a safer and more stable monetary and financial system. The Fed has several key functions including conducting monetary policy, promoting financial stability, and overseeing banks. It uses various tools like open market operations, adjusting reserve requirements and interest rates to influence the money supply and achieve its goals of maximum employment, stable prices and moderate long-term interest rates.
The document discusses monetary policy and how it affects the economy. It defines money and describes the different components that make up the money supply. Commercial banks engage in fractional reserve banking by keeping only a percentage of deposits on hand while lending out the rest. The Federal Reserve System acts as the central bank that implements monetary policy tools, such as open market operations and reserve requirements, to influence the money supply and control inflation. Expanding the money supply through more accommodative monetary policy can stimulate the economy by increasing aggregate demand, while contracting the money supply through restrictive policy reduces demand and prices.
Money serves as a medium of exchange, unit of account, and store of value in an economy. Bank Negara Malaysia (BNM) regulates Malaysia's monetary system and controls the money supply through various tools, though its control is imperfect as it cannot directly determine deposit and lending amounts by banks and households. BNM was established in 1959 and oversees currency issuance, monetary policy, and payment systems in Malaysia.
- Money refers to assets that are regularly used to purchase goods and services, and serves three main functions: as a medium of exchange, a unit of account, and a store of value.
- There are two main kinds of money: commodity money, which has intrinsic value, and fiat money, which derives its value by government decree.
- In the US, money includes currency in circulation as well as demand deposits that can be accessed through checks or ATM withdrawals. The Federal Reserve oversees and regulates the US monetary system and money supply through tools like open market operations and setting reserve requirements.
Money serves as a medium of exchange, unit of account, and store of value. The Federal Reserve regulates the US monetary system and controls the money supply through open market operations and by adjusting reserve requirements and interest rates. Banks increase the money supply by lending out deposits, though the Fed has imperfect control as it cannot dictate lending or deposit amounts.
The document summarizes key concepts about money, the money supply, and monetary policy in the United States. It explains that the US dollar is issued by the Federal Reserve and backed by the US government. It describes how the Federal Reserve, made up of the Board of Governors and regional banks, implements monetary policy to control interest rates through managing the money supply. It also outlines how money serves important functions as a medium of exchange, unit of account, and store of value in the US economy.
The document discusses the relationship between a country's Monetary Policy Rate (MPR) and corporate performance. It explains that the MPR is the official interest rate set by a country's central bank to influence economic growth and price stability. Lowering the MPR makes borrowing cheaper for businesses, which can spur investment and economic activity. However, raising rates makes borrowing more expensive and can discourage business investment and cause stock prices to fall. The document analyzes how changes to the MPR impact factors like business borrowing, strategic planning, and stock market performance.
This document discusses central banking and the conduct of monetary policy. It covers topics such as the structure and functions of central banks, the tools used to conduct monetary policy including interest rates, reserve requirements, and open market operations, and how central banks influence monetary conditions in an economy. It also discusses the money supply process, determinants of money supply, and classification of monetary policy multipliers.
The foreign exchange market involves the daily global purchase and sale of national currencies totaling $4 trillion per day. It has experienced huge growth recently and vastly exceeds other financial markets in size. While the forex market includes spot transactions, it is largely composed of derivatives contracts used to hedge currency risk. For more information on trading in this massive market, the document recommends visiting the website FX-Arabia.
The document discusses the functions and types of money, including how money serves as a medium of exchange, unit of account, and store of value. It describes the different components that make up the US money supply, such as currency, demand deposits, savings deposits, and money market funds. The document also provides an overview of the Federal Reserve System, including its structure with the Board of Governors and regional Federal Reserve Banks. It explains how the Federal Reserve uses open market operations, reserve requirements, and interest rates to influence the US money supply and achieve its monetary policy goals.
The document discusses monetary policy in the Philippines. It describes how the Bangko Sentral ng Pilipinas (BSP), as the country's central bank, implements monetary policy through tools like open market operations, reserve requirements, and interest rates. It also outlines the BSP's objectives to promote price stability and economic growth. The BSP governs monetary policy under the guidance of its Monetary Board and Governor.
This document discusses the monetary system and the role of money and central banking. It explains that the Federal Reserve regulates the US monetary system and controls the money supply through tools like open market operations, reserve requirements, and interest rates. Commercial banks also influence the money supply through fractional-reserve banking, where they hold a portion of deposits as reserves and lend out the rest, expanding the overall money supply through the money multiplier effect.
This document discusses the monetary system and the role of money and central banking. It explains that the Federal Reserve regulates the US monetary system and controls the money supply through tools like open market operations, reserve requirements, and interest rates. Commercial banks also influence the money supply through fractional-reserve banking, where they hold a portion of deposits as reserves and lend out the rest, expanding the overall money supply through the money multiplier effect.
This document discusses the monetary system and the role of money and central banking. It explains that the Federal Reserve regulates the US monetary system and controls the money supply through tools like open market operations, reserve requirements, and interest rates. Commercial banks also influence the money supply through fractional-reserve banking, where they hold a portion of deposits as reserves and lend out the rest, expanding the overall money supply through the money multiplier effect.
The document provides an overview of money and banking concepts including the functions of money, types of money, and properties of money. It also summarizes the role of the Federal Reserve in regulating the US money supply through tools like open market operations, changing reserve requirements, and adjusting interest rates. The Federal Reserve aims to promote price stability and maximum employment through its monetary policy decisions.
The document discusses the monetary system and the role of money and central banking. It describes how money serves as a medium of exchange, unit of account, and store of value. It explains how the Federal Reserve regulates the US monetary system by controlling the money supply through tools like open market operations, reserve requirements, and interest rates. It also discusses how fractional-reserve banking allows banks to create money when they issue loans.
This chapter introduces organizational behavior and its goal of applying scientific knowledge to improve organizational effectiveness. It discusses how OB systematically studies individual, group, and organizational factors to better understand workplace behaviors. The chapter also outlines challenges facing modern workplaces and how OB can help managers address issues like diversity, innovation, and work-life balance.
This document defines inflation as an increase in the average price level of all products in an economy. It discusses how economists measure inflation using tools like the Consumer Price Index (CPI) and Producer Price Index (PPI). The CPI specifically tracks the prices of goods in a market basket and is used to calculate inflation rates. Causes of inflation include increases in aggregate demand and costs, as well as growth in the money supply. Effects of inflation are a decrease in purchasing power, the value of real wages, and savings.
This document provides an overview of key concepts in macroeconomics, including:
1) The subject matter of macroeconomics such as GDP, unemployment, government policies, and how they affect economic outcomes.
2) Examples of macroeconomic problems studied, including the causes and effects of inflation, GDP growth, and how government spending impacts employment.
3) The relationship between macroeconomics and other fields like political science, and the distinction between positive and normative macroeconomic analysis.
The document discusses circular flow models which show the linkages between different sectors of the economy and how money flows between them. It describes the two sector model consisting of households and industry, the three sector model which adds government, and the four sector model that also includes financial and foreign sectors. The circular flow models illustrate how households supply factors of production like labor to businesses in exchange for factor incomes, and how businesses provide goods and services to households in exchange for spending. They can be used to understand national income calculation, trade policies, and monetary policy.
This document defines and provides examples of an oligopoly market structure. An oligopoly exists when there are a few dominant firms in an industry serving many buyers. Key aspects of oligopolies include mutual interdependence between firms, inelastic demand curves, and examples like wireless carriers, supermarkets, and electronics manufacturers. The document also contrasts oligopolies with other market structures and discusses pricing strategies in an oligopolistic market.
This document discusses the concept of economies of scale. It defines economies of scale as situations where the average cost of production decreases as the scale of output increases. There are internal economies from factors like specialization within a firm and external economies from industry-wide factors. The document outlines different types of internal economies from technical, commercial, financial, and managerial sources. It also discusses limitations of economies of scale like management problems that can arise from large size. Graphs and formulas are provided to illustrate the relationship between scale of production and average cost.
Based on the information provided:
- The demand function is in log-linear form, with the coefficients representing the elasticities.
- The price elasticity of demand (PED) is given as -1.5. This means demand is price elastic (PED > 1 in absolute value).
- The income elasticity of demand (YED) is given as 1.3. This means demand is income elastic (YED > 1).
So in summary, the key aspects of the demand for Nike sportswear based on the given expression are:
1) Demand is price elastic
2) Demand is income elastic
3) The function allows us to estimate how quantity demanded responds to changes in price and
The document summarizes Sweezy's model of oligopoly pricing behavior. It shows two demand curves representing what happens when a firm changes its price and competitors do or do not follow. This creates a "kinked" marginal revenue curve that is discontinuous at the point of equilibrium, providing no incentive for the firm to change its price or output. The model suggests firms in an oligopoly will gravitate towards "sticky prices" at the point of equilibrium.
The document discusses circular flow models which show the linkages between different sectors of the economy and how money flows between them. It describes the two sector model consisting of households and industry, the three sector model which adds government, and the four sector model that also includes financial and foreign sectors. The circular flow models illustrate how households supply factors of production like labor to businesses in exchange for factor incomes, and how businesses provide goods and services to households in exchange for spending. They can be used to understand national income calculation, trade policies, and monetary policy.
TEST BANK Principles of cost accounting 17th edition edward j vanderbeck mari...Donc Test
TEST BANK Principles of cost accounting 17th edition edward j vanderbeck maria r mitchell.docx
TEST BANK Principles of cost accounting 17th edition edward j vanderbeck maria r mitchell.docx
TEST BANK Principles of cost accounting 17th edition edward j vanderbeck maria r mitchell.docx
The Impact of Generative AI and 4th Industrial RevolutionPaolo Maresca
This infographic explores the transformative power of Generative AI, a key driver of the 4th Industrial Revolution. Discover how Generative AI is revolutionizing industries, accelerating innovation, and shaping the future of work.
University of North Carolina at Charlotte degree offer diploma Transcripttscdzuip
办理美国UNCC毕业证书制作北卡大学夏洛特分校假文凭定制Q微168899991做UNCC留信网教留服认证海牙认证改UNCC成绩单GPA做UNCC假学位证假文凭高仿毕业证GRE代考如何申请北卡罗莱纳大学夏洛特分校University of North Carolina at Charlotte degree offer diploma Transcript
New Visa Rules for Tourists and Students in Thailand | Amit Kakkar Easy VisaAmit Kakkar
Discover essential details about Thailand's recent visa policy changes, tailored for tourists and students. Amit Kakkar Easy Visa provides a comprehensive overview of new requirements, application processes, and tips to ensure a smooth transition for all travelers.
Economic Risk Factor Update: June 2024 [SlideShare]Commonwealth
May’s reports showed signs of continued economic growth, said Sam Millette, director, fixed income, in his latest Economic Risk Factor Update.
For more market updates, subscribe to The Independent Market Observer at https://blog.commonwealth.com/independent-market-observer.
Abhay Bhutada, the Managing Director of Poonawalla Fincorp Limited, is an accomplished leader with over 15 years of experience in commercial and retail lending. A Qualified Chartered Accountant, he has been pivotal in leveraging technology to enhance financial services. Starting his career at Bank of India, he later founded TAB Capital Limited and co-founded Poonawalla Finance Private Limited, emphasizing digital lending. Under his leadership, Poonawalla Fincorp achieved a 'AAA' credit rating, integrating acquisitions and emphasizing corporate governance. Actively involved in industry forums and CSR initiatives, Abhay has been recognized with awards like "Young Entrepreneur of India 2017" and "40 under 40 Most Influential Leader for 2020-21." Personally, he values mindfulness, enjoys gardening, yoga, and sees every day as an opportunity for growth and improvement.
Dr. Alyce Su Cover Story - China's Investment Leadermsthrill
In World Expo 2010 Shanghai – the most visited Expo in the World History
https://www.britannica.com/event/Expo-Shanghai-2010
China’s official organizer of the Expo, CCPIT (China Council for the Promotion of International Trade https://en.ccpit.org/) has chosen Dr. Alyce Su as the Cover Person with Cover Story, in the Expo’s official magazine distributed throughout the Expo, showcasing China’s New Generation of Leaders to the World.
Madhya Pradesh, the "Heart of India," boasts a rich tapestry of culture and heritage, from ancient dynasties to modern developments. Explore its land records, historical landmarks, and vibrant traditions. From agricultural expanses to urban growth, Madhya Pradesh offers a unique blend of the ancient and modern.
[4:55 p.m.] Bryan Oates
OJPs are becoming a critical resource for policy-makers and researchers who study the labour market. LMIC continues to work with Vicinity Jobs’ data on OJPs, which can be explored in our Canadian Job Trends Dashboard. Valuable insights have been gained through our analysis of OJP data, including LMIC research lead
Suzanne Spiteri’s recent report on improving the quality and accessibility of job postings to reduce employment barriers for neurodivergent people.
Decoding job postings: Improving accessibility for neurodivergent job seekers
Improving the quality and accessibility of job postings is one way to reduce employment barriers for neurodivergent people.
Vicinity Jobs’ data includes more than three million 2023 OJPs and thousands of skills. Most skills appear in less than 0.02% of job postings, so most postings rely on a small subset of commonly used terms, like teamwork.
Laura Adkins-Hackett, Economist, LMIC, and Sukriti Trehan, Data Scientist, LMIC, presented their research exploring trends in the skills listed in OJPs to develop a deeper understanding of in-demand skills. This research project uses pointwise mutual information and other methods to extract more information about common skills from the relationships between skills, occupations and regions.
How to Invest in Cryptocurrency for Beginners: A Complete GuideDaniel
Cryptocurrency is digital money that operates independently of a central authority, utilizing cryptography for security. Unlike traditional currencies issued by governments (fiat currencies), cryptocurrencies are decentralized and typically operate on a technology called blockchain. Each cryptocurrency transaction is recorded on a public ledger, ensuring transparency and security.
Cryptocurrencies can be used for various purposes, including online purchases, investment opportunities, and as a means of transferring value globally without the need for intermediaries like banks.
2. MONEY
• Task!
–What is money?
–What is the function of money?
–What has served as money
throughout history?
3. Money
• Money has Three Basic
Functions:
– 1. Medium of Exchange- enables
us to carry out trade and
commerce easily
– 2. Standard of Value- allows us to
measure and compare value using
one scale
– 3. Store of Value- it (usually) holds
its value over time
4. Money
• Money also has Six Main
Characteristics:
– 1. Acceptability- in order for you to buy something,
the seller must be willing to accept what you offer as
payment
– 2. Scarcity- needs to be scarce enough to be
valued by buyers and sellers
5. – 4. Durability- if money is
to serve as a store of
value, it must be durable
• 3. Portability- in order to
be convenient as a medium
of exchange it must be
portable
6. – 5. Divisibility- to be useful
as a medium of exchange,
money must be easily
divided into smaller
amounts
– 6. Uniformity- a dollar is a
dollar is a dollar. We take
for granted that each dollar
is the same as the next.
7. What Serves as Money?
– Throughout history, many items such as: salt,
shells, cattle, beads, fur, tobacco, gold, and silver
have served as money
– These are examples of commodity money– form of money that
has some intrinsic value or alternate use
• Gold and silver have generally been preferred because they hold many of
the characteristics of money
8. What about today?
• However, our money is no longer backed by precious
metals such as gold and silver
• Fiat money- paper money decreed as legal tender, but
not representing anything of intrinsic worth
– Rather, money is accepted solely
because we believe that it is worth
something, and is backed by the
“full faith and credit” of the United States
government
Trust me!
9. What is Currency and Money Supply?
• Currency- the bills and coins
currently in circulation in the
economy
• However, currency is only a
part of the total money
supply in the country
• Money Supply – total
amount of currency,
loans/credit, and other liquid
instruments available in the
economy at a given time
10. M1& M2 Money Supply
• M1 Money Supply is made
up of:
– Coins and bills (currency)
– Checkable deposits (liquid
assets)
– Travelers Checks
• M2 Money Supply is made
up of:
– All of M1
– Less liquid assets such as
savings deposits, money
market accounts, etc.
Discussion: Do we want a
larger or smaller total
money supply?
11. • So how is that money (M1 and M2)
transferred between people and managed?
– By banks!
12. The Regional Banks of the Federal
Reserve
• http://www.youtube.com/watch?v=8Hq5zw4Y
aZQ&list=PL2EVBfEJ5a_JPvnd463lXOKmqdzL1
9ygR
• http://www.youtube.com/watch?v=M5drSk6E
kHk&feature=c4-overview-
vl&list=PL2EVBfEJ5a_JPvnd463lXOKmqdzL19y
gR
13. The Banking System in a Nutshell:
• Fractional Reserve Banking- a system
whereby banks keep a fraction of deposits in
reserves but loan out the rest to businesses
and consumers
• System allows our MONEY SUPPLY TO
EXPAND!
14. Federal Reserve Reading
• Pg. 282-285 – Read 14.4 “What Tools Does
Monetary Policy Use to Stabilize the
Economy”
• Complete Sections A-D of “The Federal
Reserve” Notes
15. Follow-Up Questions – Reread Pgs.
282-284
• What is the Federal Reserve System?
• What is monetary policy?
• Why does the Fed use…
– An easy-money policy?
– A tight-money policy?
16. Catch Me If You Can
• http://www.youtube.com/watch?v=DCOm4os
fWn8
• http://www.youtube.com/watch?v=dK2LZarp
Nek
17. Monetary Policy- what is it?
• Monetary Policy-
central bank policy
aimed at regulating
interest rates and the
amount of money in
circulation to influence
the health and
direction of the
economy
18. The Federal Reserve (Fed)
• The Federal Reserve is America’s central bank,
established in 1913
• Congress gave the Fed enough power to act
independently in regards to monetary policy
19. Structure of the Fed
• 1. Board of Governors
– 7 member board that oversees the Fed from
Washington D.C.
– Appointed by the president and confirmed by the
Senate for one 14 year term in office
– President selects one governor to serve as
chairman for 4 years
– Responsible for the overall direction of monetary
policy
20. Structure of the Fed
• 2. Regional Federal
Reserve Banks
– 12 regional banks
– Carry out many of
the day-to-day
duties
– Each regional bank
overseen by a
president
21. Structure of the Fed
• 3. Federal Open Market
Committee (FOMC)
– Consists of:
• All 7 governors from the Board
of Governors
• 5 rotating regional fed
presidents
– **But always New York’s
president
– FOMC is the policymaking body
of the Fed
– Study economic information
and decide what changes (if
any) to make to monetary
policy
22. Policies followed by Fed
• Easy Money Policy (Expansionary)
– Fed expands the money supply trying to cause cheaper lending
to stimulate economic growth
– Interest rates lower but too much easy money policy leads to
INFLATION
• Tight Money Policy (Contractionary)
– Fed shrinks the money supply trying to cause lending to be
more expensive to slow the economy
– Interest rates rise but too much tight money policy leads to a
RECESSION
23. Federal Reserve Reading
• Pg. 286-288 – Read the rest of14.4 “What
Tools Does Monetary Policy Use to Stabilize
the Economy”
• Complete Section E & F of “The Federal
Reserve” Notes
24. Follow-Up Questions
• What are open-market operations?
• What is the reserve requirement?
• What is the discount rate?
• What is the purpose of these tools?
25. 3 Main Tools of the Fed
• 1. Open Market Operations-
the buying and selling of
government securities in the
bond market (most used tool)
– Easy-Money Policy:
• Fed bond traders BUY
government securities, which
increases the money supply
– Tight-Money Policy:
• Fed bond traders SELL
government securities, which
decreases the money supply
26. • 2. Reserve requirement- the
minimum percentage of
deposits that banks must
keep in reserve at all times
(least used tool)
– Easy-Money Policy:
• Fed LOWERS REQUIREMENT,
which increases the money
supply
– Tight-Money Policy:
• Fed INCREASES
REQUIREMENT, which
decreases the money supply
27. • 3. The Discount Rate- the interest rate
the Fed charges on loans to private banks
(last tool in their toolbox)
– This tool leads to the Fed being known as the
“lender of last resort”
– Controlled by the Board of Governors
– Easy-Money Policy:
• Fed LOWERS rate, which increases the money supply
– Tight-Money Policy:
• Fed RAISES rate, which decreases the money supply
28. The Fourth “Tool”
• 4. Federal Funds Rate- the interest rate that banks
charge one another for quick (overnight) loans
• Banks set this rate, so this is NOT a monetary policy
tool
• HOWEVER, the Fed sets a target rate based on its view
of the economy & uses OMO to nudge the rate
towards the target!
– The Federal Funds Rate affects the interest rate on
everything: credit cards, mortgages, savings accounts,
bonds, etc.
31. UNIT #5 Fed REVIEW:
• Define monetary policy in your own words.
• If the Fed wanted to increase the money supply using the discount rate, what
would they do? Would the Fed be attempting to stimulate or slow down the
economy?
• If the Fed wanted to decrease the money supply using reserve requirement,
what would they do? What would happen to interest rates?
• If the Fed wanted to increase the money supply using open market
operations, what would they do? Would this be considered easy or tight
money policy?
• What is the relationship between interest rates and the amount of credit
demanded?
32. How much do banks need to keep on
reserves?
Pat’s $1000
Deposited
Pat’s $1000 -
$200 in reserve
LOAN
Kim’s $800 for
School books
Pat’s $1000 –
$200 in reserve
PSU deposits
$800 –
$160 in reserve
LOAN
Dave’s $640 for
New TV
**In a sense, as banks continuously lend
money that is not in reserves, they are
“creating money” in the money supply. This
lending is increasing the flow of money that
ordinarily wouldn’t be able to happen!**
Editor's Notes
THE BANKS OF BANKS!
Why so many banks – no one bank could be all-powerful, regional structure more responsive to local needs
1913: Congress decides that there is a need to create The Fed
Lacking the money to create The Fed, Congress asks banks in each district to contribute money to est. the institution (so member banks –banks belonging to the Fed – own it), they get stock in Fed back (Fed pays dividends to member banks)
As a result, the private banks own the Fed and elect a board of directors to run in
CONGRESS DOES NOT APPROPRIATE FUNDS (Fed is SELF-SUFFICIENT)
FOMC – 8 meetings a year where they release their feelings/projections about economy & set the target fed funds rate (rate banks charge each other for overnight loans of reserve balances to each other)
Prime Rate – set by banks, lowest interest rate charged to best customers
Board of Governors – Elects a chairman for 4 years (this person reports to Congress twice a year)
The Fed is an independent monetary authority, but it comes under political pressure to raise or lower interest rates.
The president and Congress can affect the Board of Governors by appointing new members when governors’ terms expire.
GOAL IS TO INCREASE MONEY SUPPLY FAST ENOUGH TO KEEP UP WITH GROWTH BUT NO FASTER!
Easy money – consumers spend too much, increase in demand causes demand-pull inflation
Tight money – deflation results with low levels of investment & spending
THREE TOOLS ARE USED TO INFLUENCE THE TARGET FEDERAL FUNDS RATE!
RR – change requirement for savings & checking accounts, powerful tool but very rarely used to influence monetary policy (CHANGED BY GOVERNORS)
DR (rate charged by individual banks for loans obtained from the Fed Central Banks (set by Fed at anytime)– why getting loan from Fed.
1. Reserves could have dropped which shrinks excess reserves = less loans
2. Banks could face seasonal demand for loans (bank in agricultural area might have high loan demand during planting)
3. many withdrawals
Banks shy away from borrowing from Fed because usually means they are in trouble, instead they borrow from fellow banks
DR has been as high as 7.0% to low of 0.75% from 1990-2008
If lower rate then “opens window” for lending (LOOSE MONETARY POLICY)
If high then “closes” window for lending (TIGHT MONETARY POLICY)
OMO
Want to increase money supply
Fed buys gov’t securities from dealer who specializes in large volume transactions
Fed writes a check to pay for it
Dealer deposits check in his/her bank
Bank forwards check to Fed & Fed “pays” check by increasing the bank’s reserves
RESULT – Any time the Fed writes a check, reserves are pumped into banks (therefore more loans can be given)
Shrink money supply
Instructs Fed bond traders to Sell billions of $ of securities to dealers
Dealers pay for securities with checks withdrawing from bank
Fed processes checks by reducing reserves from bank
Fewer reserves = less money to loan = less money supply
Required to get quick loans if they don’t have enough reserves
Why this rate? = easiest rate to change using OMO, affects interest rates for mortgages/credit cards/savings accounts/bonds
The FOMC Policy Decision
"The Committee will maintain the target range for the federal funds rate at 0 to 1/4 percent and continues to anticipate that economic conditions, including low rates of resource utilization, subdued inflation trends, and stable inflation expectations, are likely to warrant exceptionally low levels of the federal funds rate for an extended period. The Committee will continue to monitor the economic outlook and financial developments and will employ its policy tools as necessary to promote economic recovery and price stability."
Again, the FOMC opted for no change in the target federal funds rate, essentially repeating the March policy statement. 'The fed funds rate can't be used effectively to help the member banks, who borrow reserves at the fed funds rate from other member banks. With the target so low, monetary policy, especially open market operations, is not an effective stimulatory tool.
The demand for money consists of consumers borrowing for such items as cars and homes, firms borrowing for such items as factories and equipment, and the government borrowing to finance the national debt. The supply of money is set by the Federal Reserve Board of Governors, the central banking system for the United States. The supply and demand for money determine the interest rate that must be paid for the use of borrowed money. So if the Federal Reserve increases the money supply, interest rates will fall, making it less expensive to borrow money. In that case, those wishing to borrow money will be more likely to do so-- and be more likely to spend that money on products. If the Federal Reserve reduces the money supply, interest rates will rise, so less will be borrowed and spent (because of the higher cost of borrowing).
With every deposit, there is an increase in the lending power of the bank
Thus, the monetary value of one deposit will have lending power well beyond its value