In a monetary system with limited reserves using a money market graph and explain how increasing the discount rate changes  a. The money supply b. Interest rates  c. AD

Multiple choice, thank you for the help! Money that has no intrinsic value except as money is called a. b. C. d. e. a. b. C. d. Money made with silver, gold, and chocolate are examples of e. a. b. C. d. e. a. b. bonded C. commodity Fiat money has value because: d. fiat e. intrinsic None of these answers is correct. fiat commodity backed government None of these answers is correct. it is backed by gold. Liquidity is a measure of: people believe it has value. it has intrinsic value. it is backed by silver. None of these answers is correct. the monetary base. the amount of reserves. how quickly an asset can be converted to currency. how quickly coins can be melted down. how many coins are in circulation. money. money.

THINKING IT OVER Describe how the Federal Reserve can use its authority to stimulate the economy. How does the Fed raising the reserve requirement affect the possibility of getting a business loan? Why is monetary policy an important part of the federal Reserve’s mission?

1. What were the factors that led to the adoption of modern monetary and fiscal policies? 2. Why was the US economy so disinflationary and deflationary in the 1800s? 3. What prompted the creation of the Federal Reserve System?