The pandemic has impacted the use of currency in our economy. Explain in your own words, how the changes in the use of currency would affect the monetary base in the banking system, while holding all other factors constant.

The term “moral hazard” describes increases in risky behavior resulting from efforts to make that behavior safer. How does the concept of moral hazard apply to deposit insurance and other bank regulations? Can you think of any arguments in favor of getting rid of the FDIC? How might doing so improve the safety of banks?

Is the Federal Reserve Bank important to our economy? Choose a side and support your argument with 2 reasons. Be thorough. 1 paragraph.

How should the Federal Reserve Bank execute Monetary Policy?

The fractional reserve characteristic of the banking system allows banks to create money and also create wealth from bank deposits.  True or false?

How monetary policy works, and its benefits.

What problems an economy may face without money supply? How commercial banks create money in fractional reserve banking system? How a central bank uses many tools to control inflation in an economy?

Suppose most of your savings are in bonds and, according to an article in the Wall Street Journal, the Fed announces that it will carry out a contractionary monetary policy. What should you do? Should you continue to hold your bonds or should you move your funds into bank accounts?

What limits the Bank of Canada’s ability to steer the economy to avoid both recession and inflation?

What does liquidity mean? What are some less than 100% liquid monetary instruments?