Macro Learning Objectives for questions over Exam 1 Form A

 

PCM

 ECON 2301 MACROECONOMICS   

Chapter 13

Below you will find the learning objective, concept, idea, term, or theory that each question on the exam will cover. The numbers in the list refer to the question number on Exam 3 that will test your knowledge of that specific learning objective. Each of these topics/learning objectives is discussed in the textbook in the order that they are listed below. A much better understanding can often be attained by working through the "active graphs" and "smart graphs" connected to many of these objectives in the online material.

 
    After reading Chapter 13, you should be able to:
  1. Identify the various types of money, and identify the functions of money. (Section 13.1)
  2. Demonstrate an understanding of the concept of liquidity, and explain what is included in the various measures of money. (Section 13.1)
  3. Describe key elements of the banking industry. (Section 13.2)
  4. Distinguish between the various components of a bank’s balance sheet, and explain the difference between types of loans and their interest rates. (Section 13.2)
  5. Discuss how banks create money. (Section 13.2)
  6. Describe the structure and functions of the Federal Reserve. (Section 13.3)
  7. Explain the workings of the money multiplier and its relation to the monetary base. (Section 13.3)
  8. Work through the process of monetary expansion using the deposit multiplier. (Section 13.3)
  9. Demonstrate the policy choices available to the Fed and when and how they would be used. (Section 13.3)
  10. Explain why banks fail and whether another banking crisis, similar to those that occurred in the 1930s and 1980s, could happen again. (Section 13.4)