NUR AFIFAH BINTI MAZLAN 1190631 TMB1

Money Supply

CROSSWORD 1

across 2
2 Open market transactions, discount rate,

required reserve ratio

3
4 Organization that insures bank deposits
4 5 6
(initials)

6 Money ___, consists of currency reserves 7 8

plus bank deposits

7 A type of target, the money base is an

example

9 Part of Fed that sets targets, directs 9

monetary policy (initials) 10

11 Current chairmen of the Fed 11

down

1 A type of target, inflation and output are examples

3 Ratio, fraction of bank deposits held in reserve
5 People who argue that debt has a stronger link to output than money favor these kinds of targets
8 Rate Federal Reserve charges banks for short-term loans
10 Nickname for the Federal Reserve

ACROSS

2. Money supply

4. FRIC- Federal Deposit Insurance Corporation

6. Base

7. Intermediate

9. FOMC- Federal Open Market Committee

11. Greenspan
 DOWN

1. Fund rate

3. Reserve

5. Credit

8. Discount

10. FRB

fill-in questions
1. A bank’s total reserves are made up of both excess and required reserves.

2. The interest rate charged by the Fed to member banks is called the discount rate

3. The rate that one bank charges another to borrow its excess reserves is called the secondary
reserves.

4. The ratio of the money supply to the money base is called the money multiplier

5. The money base is also called the stock of money supply.

6. The ratio of currency to bank deposits is called the currency deposit ratio

7. The ratio of bank reserves to bank deposits is called the reserve ratio

8. The Federal Deposit Insurance insures bank deposits, so that depositors get paid even if a bank
fails.

9. The Fed mostly uses open market operations to control the money supply.

10. The money supply increases more than the monetary base when the Fed buys bonds because of
fractional-reserve banking.