Size: px
Start display at page:

Download "http://angel.bfwpub.com/section/content/default.asp?wci=pgt..."

Transcription

1 Hmwk Let's find out what counts as money. In this chapter, we used a typical definition of money: A widely accepted means of payment. Under this definition, which people are using money in the following transactions: i) Lucy sells her Saab to Karen for $1,000 in cash. ii) Lucy sells her Saab to Karen for $1,000 worth of old Bob Dylan records. iii) Lucy sells her Saab to Karen for $1,000 in checking account balances (transferred by writing a check). iv) Lucy sells her Saab to Karen by Karen promising $1,000 worth of auto-dealing services over the next year. v) Lucy sells her Saab to Karen for $1,000 worth of Revolutionary War-era continental dollars. A. transactions i and v B. transactions iii and iv C. transactions i and ii 2. Fill in the blanks for the following definitions of the money supply: is currency and total reserves held at the Fed. is currency plus checkable deposits. is M1 plus savings deposits, money market mutual funds, and small time deposits. A. Monetary Base (MB); M1; M2 B. M2; M1; Monetary Base (MB) C. M1; Monetary Base (MB); M2 D. Monetary Base (MB); M2; M1 3. Suppose that banks have decided to keep a reserve ratio of 10 percent. This guarantees that they'll have enough cash in ATM machines to keep depositors happy and enough electronic deposits at the Federal Reserve so that they can redeem checks presented by other banks. What is the money multiplier in this case? A. 10 percent B. 1 C. 1% D Complete the following sentences: If depositors start visiting the ATM a lot more often, banks will have to the reserve ratio. This will lead to a money multiplier. A. increase; higher B. lower; lower C. increase; lower D. lower; higher 5. If the Federal Reserve wants to lower interest rates via open-market operations, should it buy 1 of 11 12/11/11 5:42 AM

2 bonds or should it sell bonds? A. The Fed should sell bonds. B. The Fed should buy bonds. C. The Fed cannot lower interest rates by buying or selling bonds. D. The Fed should sell and then buy back bonds. 6. Practice with money multipliers. Think of the money supply (MS) as equal to either M1 or M2: RR = 5%, Changes in reserves = $10 billion. MM =?; Change in MS =? A. MM=20; MS=$200 billion B. MM=5; MS=$50 billion C. MM=10; MS=$100 billion D. MM=1; MS =$10 billion 7. Practice with money multipliers. Think of the money supply (MS) as equal to either M1 or M2: RR = 20%, Changes in reserves = -$1,000. MM =?; Change in MS =? A. MM=20; MS=-$20,000 B. MM=20; MS=-$5,000 C. MM=5; MS=-$1, Practice with money multipliers. Think of the money supply (MS) as equal to either M1 or M2: RR = 100%, Changes in reserves = $10 billion. MM =?; Change in MS =? A. MM=100; MS=$1,000 B. MM=1; MS= $10 billion C. MM= 1; MS= $1 billion D. MM= 10; MS= $100 billion 9. Some economists have recommended that all banks be required by law to keep 100 percent of their deposits in the bank vault, at the Federal Reserve, or invested in ultrasafe investments such as short-term U.S. Treasury bills. If this happened, what would probably happen to the interest rate on bank deposits? A. The interest rate on bank deposits would probably not be affected by this. B. The interest rate on bank deposits would probably not increase. C. The interest rate on bank deposits would probably decrease. 2 of 11 12/11/11 5:42 AM

3 10. Some economists have recommended that all banks be required by law to keep 100 percent of their deposits in the bank vault, at the Federal Reserve, or invested in ultrasafe investments such as short-term U.S. Treasury bills. How would this probably affect the way people invest their savings? A. People would want to save more in banks since they would offer a higher interest rate on deposits. B. People would want to save less in banks and save more in bank alternatives (bonds or money market mutual funds). C. People would want to save more in banks since they would offer a lower interest rate on deposits. 11. The main interest rate that the Federal Reserve tries to control is the Federal Funds rate, the interest rate that banks charge on short-term (usually overnight) loans to other banks. Let's see how much interest a bank can earn if it lends money at the Federal Funds rate: Virginia Community Bank has $2,000,000 of extra cash sitting in its account at the Federal Reserve Bank of Richmond. It gets a call from Bank of America asking to borrow the whole $2,000,000 for 24 hours. If the annual interest rate on federal funds is 4 percent, what is the one-day interest rate on federal funds? A. approximately 0.011% per day B. approximately 4% per day C. approximately 1.1% per day D. approximately 2% per day 12. The main interest rate that the Federal Reserve tries to control is the Federal Funds rate, the interest rate that banks charge on short-term (usually overnight) loans to other banks. Let's see how much interest a bank can earn if it lends money at the Federal Funds rate: Virginia Community Bank has $2,000,000 of extra cash sitting in its account at the Federal Reserve Bank of Richmond. It gets a call from Bank of America asking to borrow the whole $2,000,000 for 24 hours. If the annual interest rate on federal funds is 4 percent, how many dollars of interest will Virginia Community Bank earn for lending this money for one day? A. $80,000 B. $8,000 C. $220 D. $220, Let's use the model of the supply and demand for bank reserves to explain how the Federal Reserve can change aggregate demand in the short run. After a meeting, the Federal Reserves Open Market Committee votes to cut interest rates from 2 percent to 1.5 percent. How will they make this happen? 3 of 11 12/11/11 5:42 AM

4 A. The Fed will decrease demand for bank reserves. B. The Fed will increase demand for bank reserves. C. The Fed will decrease the supply of bank reserves. D. The Fed will increase the supply of bank reserves. 14. Let's use the model of the supply and demand for bank reserves to explain how the Federal Reserve can change aggregate demand in the short run. After a meeting, the Federal Reserves Open Market Committee votes to cut interest rates from 2 percent to 1.5 percent. What will happen to the nation's money supply? A. it will increase B. it will decrease C. it will stay the same 15. After a meeting, the Federal Reserves Open Market Committee votes to cut interest rates from 2 percent to 1.5 percent. What will likely happen to aggregate demand in this case? A. it will decrease B. it will increase C. It will not be affected by the decrease in interest rates. D. It depends upon the short run position of the economy: If the economy is below its potential growth rate than the aggregate demand will decrease. If the economy is above its potential growth rate than the aggregate demand will increase. 16. We mentioned that the central bank can influence a short-run real interest rate. This is because in the short run the inflation rate is relatively constant but the central bank can adjust the nominal rate on short-term loans. Recall that after investing in a T-bill, the real rate that investors receive is: Real interest rate = Nominal interest rate Inflation. If inflation is 3 percent and the Fed wants the real rate on short-term loans to be 2 percent, where should it set the nominal Fed Funds rate? A. 2 percent B. 3 percent C. 2.5 percent D. 5 percent 17. We mentioned that the central bank can influence a short-run real interest rate. This is because in the short run the inflation rate is relatively constant but the central bank can adjust the nominal rate on short-term loans. Recall that after investing in a T-bill, the real rate that investors receive is: Real interest rate = Nominal interest rate Inflation. If inflation is 3 percent and the Fed wants to encourage borrowing by cutting the real rate on short-term loans to -1 percent, where should it set the nominal Fed Funds rate? 4 of 11 12/11/11 5:42 AM

5 A. 2 percent B. 3 percent C. 4 percent 18. What is the relationship between government-run central banks and deposit insurance institutions with the problem of moral hazard? A. Both central banks and deposit insurance institutions increase moral hazard problems because they might take on too much risk. B. Both central banks and deposit insurance institutions increase moral hazard problems because they might take on too little risk. C. Both central banks and deposit insurance institutions decrease moral hazard problems because they might take on too much risk. D. Both central banks and deposit insurance institutions increase moral hazard problems because they are immoral institutions. 19. Fill in the blanks for the following sentences: In the short run, if the Fed wants to cut short-term, nominal interest rates, it will the growth rate of money. This will tend to the real interest rate. A. decrease; increase B. increase; increase C. increase; decrease D. decrease; decrease 20. In the long run, if the Fed wants to decrease the nominal interest rate what will it do? A. The Fed would increase the growth rate of money. B. The Fed would decrease the growth rate of money. C. The Fed would continuously buy government bonds. D. The Fed would continuously lower the minimum required reserve ratio of banks. 21. Let's watch a bank create money. Last Wednesday, the Bank of Numenor opened for business. The first customer, Edith, walked in the door with 100 pieces of silver to deposit in a new checking account. The second customer, Max, walked in the door a few minutes later, asking to borrow 50 pieces of silver for a week. The bank lent Max the silver. Just to keep things simple, assume these are the only financial transactions in Numenor. And just to be clear: silver pieces are either currency or reserves. Silver in Max or Edith's hands is currency, while silver in the bank is reserves. How much money is there in the Numenor economy after the Bank made the loan to? 5 of 11 12/11/11 5:42 AM

6 A. MB = 100 pieces; M1= 100 pieces B. MB = 50 pieces; M1 = 50 pieces C. MB = 100 pieces; M1 = 150 pieces D. MB = 150 pieces; M1 = 100 pieces 22. You are a bank regulator working for the Federal Reserve. It is your job to determine whether banks are solvent or insolvent, liquid or illiquid. What would you state about the Bank of Escondido that has the following characteristics: Short-term assets = $6 million; Short-term liabilities = $10 million; Total assets = $50 million and Total liabilities = $40 million. A. liquid and solvent B. illiquid but solvent C. liquid but insolvent D. illiquid and insolvent 23. In the past, the Federal Reserve didn't pay interest on reserves kept in Federal Reserve banks: For an ordinary U.S. bank, money kept at the Fed earned zero interest, just like money stored in a vault or in an ATM machine. In 2008, the Fed started paying interest on deposits kept at the Fed. If a central bank starts paying interest on reserves, how is this likely to affect the amount of loans made by private banks, holding all else equal? A. All else equal, banks will probably make fewer loans. B. All else equal, banks will probably make more loans. C. All else equal, this would probably not affect the amount of loans being made by private banks. D. Private banks do not make loans, only the Fed is permitted to make loans to private customers. 24. Section: Fractional Reserve Banking, the Reserve Ratio, and the Money Multiplier Suppose the reserve ratio in the banking system is 50%. If the Fed decreases bank reserves by $200, then the money supply will: A. increase by $1,000. B. decrease by $1,000. C. increase by $400. D. decrease by $ Section: Open Market Operations Open market operations refer to: 6 of 11 12/11/11 5:42 AM

7 A. the Fed's spending in different markets of the economy. B. the Fed's buying and selling government bonds. C. private banks' lending practices. D. the Treasury's operations in foreign exchange markets. 26. Section: Revisiting Aggregate Demand and Monetary Policy In the short run, an increase in the growth rate of money supply leads to: A. a decrease in aggregate demand, an increase in the inflation rate but a decrease in the real growth rate. B. an increase in aggregate demand, an increase in the inflation rate but a decrease in the real growth rate. C. an increase in aggregate demand, a decrease in the inflation rate but an increase in the real growth rate. D. an increase in aggregate demand, and an increase in both the inflation and real growth rate. 27. Section: The Federal Reserve and Systemic Risk Which of the following best describes the condition in which banks take too much risk in the hope that the Fed will later bail them out? A. systemic risk B. moral hazard C. solvency crisis D. liquidity crisis 28. Section: The U.S. Money Supplies If a person makes a deposit into her savings account with cash, then: A. M1 will decrease while M2 will increase. B. M1 will increase while M2 decrease. C. M1 will decrease while M2 will remain unchanged. D. both M1 and M2 will remain unchanged. 29. Section: The U.S. Money Supplies Refer to the following table. The amount of M1 equals: Currency $100 7 of 11 12/11/11 5:42 AM

8 Savings deposits $50 Checkable deposits $80 Money market mutual funds $15 Small time deposits $10 A. $110 B. $180 C. $230 D. $ Which of the following is not a function of the Federal Reserve? A. serving as the lender of last resort B. regulating the U.S. financial system C. regulating the U.S. money supply D. providing loans to small businesses 31. Why are debit cards not listed as money? A. Because they perform the same function as checks, and checks are counted as money. B. Debit cards cannot be used for payments at most stores. C. Debit cards draw on checkable deposits, which are already counted as money. D. Not all banks issue debit cards. 32. Reference: Ref 14-1 (Table: Statistics for a Small Economy) The table above shows some statistics for a small economy. Using only the information provided, M1 in this country amounts to: 8 of 11 12/11/11 5:42 AM

9 A. $36 million. B. $57 million. C. $23 million. D. $50 million. 33. Reference: Ref 14-1 (Table: Statistics for a Small Economy) The table above shows some statistics for a small economy. Using only the information provided, the monetary base amounts to: A. $149 million. B. $71 million. C. $19 million. D. $12 million. 34. What part of the money pyramid does the Fed have direct control over? A. the monetary base B. M1 C. the monetary base plus M1 D. M2 35. The Federal Funds rate is the interest rate charged on a(n): A. low interest loan from the Federal Reserve to a bank. B. loan from the Federal Reserve to a bank. C. long-term loan from one bank to another. D. overnight loan from one bank to another. 36. When banks borrow directly from the Fed, the interest rate they pay is called the: 9 of 11 12/11/11 5:42 AM

10 A. prime rate. B. discount rate. C. Federal Funds rate. D. required reserve rate. 37. Systemic risk is: A. the risk of contagion that occurs when a failing financial institution owes significant sums of money to other financial institutions. B. a risk that is limited to a specific sector only. C. the risk of a bubble in the entire asset pricing system. D. the risk that, when a financial institution fails, its depositors will not only lose their money but also their trust in the monetary system. 38. What was the rationale for the Fed lending billions of dollars to the insurance company American International Group (AIG)? A. The Fed knew it would receive a high return on the loan. B. The Fed was following a long-time precedent in rescuing top insurance companies. C. If AIG collapsed, the insurance industry would as well. D. The money AIG owed to banks posed a systemic risk. 39. Which of the following is an example of moral hazard? A. Only people with very high risk of default on loans borrow from banks. B. Drivers have less incentive to avoid accidents after getting auto insurance. C. When one bank fails, other banks become more cautious in lending. D. People living along the Gulf Coast are more likely to buy flood insurance. 40. Figure: AD and Monetary Policy 10 of 11 12/11/11 5:42 AM

11 Reference: Ref 14-5 (Figure: AD and Monetary Policy) Suppose in a given economy, we start at point A as shown in the figure above. If the Fed engages in an expansionary monetary policy, what would you expect to happen in the short run? A. Aggregate supply will decrease because of higher wages. B. Aggregate demand will decrease because of lower interest rates. C. Aggregate demand will increase because of lower interest rates. D. The economy will return to the Solow growth rate. 11 of 11 12/11/11 5:42 AM

PRACTICE- Unit 6 AP Economics

PRACTICE- Unit 6 AP Economics PRACTICE- Unit 6 AP Economics Multiple Choice Identify the choice that best completes the statement or answers the question. 1. The term liquid asset means: A. that the asset is used in a barter exchange.

More information

Chapter 13 Money and Banking

Chapter 13 Money and Banking Chapter 13 Money and Banking Multiple Choice Questions Choose the one alternative that best completes the statement or answers the question. 1. The most important function of money is (a) as a store of

More information

Macroeconomics, 8e (Parkin) Testbank 1

Macroeconomics, 8e (Parkin) Testbank 1 Macroeconomics, 8e (Parkin) Testbank 1 Chapter 9 Money, the Price Level, and Inflation 9.1 What is Money? 1) The functions of money are A) medium of exchange and the ability to buy goods and services.

More information

MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.

MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. Study Questions 5 (Money) MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) The functions of money are 1) A) medium of exchange, unit of account,

More information

MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.

MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. Exam Name MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) The government agency that oversees the banking system and is responsible for the conduct

More information

4. The minimum amount of owners' equity in a bank mandated by regulators is called a requirement. A) reserve B) margin C) liquidity D) capital

4. The minimum amount of owners' equity in a bank mandated by regulators is called a requirement. A) reserve B) margin C) liquidity D) capital Chapter 4 - Sample Questions 1. Quantitative easing is most closely akin to: A) discount lending. B) open-market operations. C) fractional-reserve banking. D) capital requirements. 2. Money market mutual

More information

Chapter 13 Money and Banking

Chapter 13 Money and Banking Chapter 13 Money and Banking After reading Chapter 13, MONEY AND BANKING, you should be able to: Explain the three functions of money: Medium of Exchange, Unit of Account, Store of Value. Understand the

More information

Reference: Gregory Mankiw s Principles of Macroeconomics, 2 nd edition, Chapter 15. The Banking System and the Money Supply

Reference: Gregory Mankiw s Principles of Macroeconomics, 2 nd edition, Chapter 15. The Banking System and the Money Supply Macroeconomics Topic 6: Explain how the Federal Reserve and the banking system create money (i.e., the supply of money) Explain the factors that affect the demand for money. Reference: Gregory Mankiw s

More information

MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.

MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) Of the four players in the money supply process, most observers agree that the most important player

More information

Chapter 11 The Central Bank Balance Sheet and the Money Supply Process

Chapter 11 The Central Bank Balance Sheet and the Money Supply Process Chapter 11 The Central Bank Balance Sheet Problems and Solutions 1. In an effort to diversify, the Central Bank of China has decided to exchange some of its dollar reserves for euros. Follow the impact

More information

Practice Problems Mods 25, 28, 29

Practice Problems Mods 25, 28, 29 Practice Problems Mods 25, 28, 29 Multiple Choice Identify the choice that best completes the statement or answers the question. Scenario 25-1 First National Bank First National Bank has $80 million in

More information

The Banking System and the Money Supply. 2003 South-Western/Thomson Learning

The Banking System and the Money Supply. 2003 South-Western/Thomson Learning The Banking System and the Money Supply 2003 South-Western/Thomson Learning What Counts as Money MONEY Anything that is widely accepted as a means of payment What Counts as Money MONEY Anything that is

More information

Homework 5: The Monetary System and Inflation

Homework 5: The Monetary System and Inflation Homework 5: The Monetary System and Inflation Solutions 1. Be sure to read your copy of the Wall Street Journal every weekday, looking especially for items related to the material in this course. Find

More information

Change Effect on nominal money demand Effect on real money demand Decrease in aggregate price level Shift nominal money demand to left Has no effect

Change Effect on nominal money demand Effect on real money demand Decrease in aggregate price level Shift nominal money demand to left Has no effect AP Macroeconomics Unit 4 Review Session Money Market 1. Draw the money market, indicating the equilibrium interest rate and quantity. 2. Use the following table to answer this question. Change Effect on

More information

THE MEANING OF MONEY. The Functions of Money. Money has three functions in the economy: The Functions of Money. The Functions of Money

THE MEANING OF MONEY. The Functions of Money. Money has three functions in the economy: The Functions of Money. The Functions of Money In this chapter, look for the answers to these questions: What assets are considered money? What are the functions of money? The types of money? 11 What is the Federal Reserve? What role do banks play

More information

4 Macroeconomics LESSON 4

4 Macroeconomics LESSON 4 4 Macroeconomics LESSN 4 The Federal Reserve System and Its Tools Introduction and Description The focus of this lesson is the Federal Reserve System: how its actions relate to the money creation process

More information

What three main functions do they have? Reducing transaction costs, reducing financial risk, providing liquidity

What three main functions do they have? Reducing transaction costs, reducing financial risk, providing liquidity Unit 4 Test Review KEY Savings, Investment and the Financial System 1. What is a financial intermediary? Explain how each of the following fulfills that role: Financial Intermediary: Transforms funds into

More information

MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.

MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. Survey of Macroeconomics, MBA 641 Fall 2006, Quiz 4 Name MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) The central bank for the United States

More information

Currency: The paper money and coins owned by people and business firms

Currency: The paper money and coins owned by people and business firms WHAT IS MONEY? Things acceptable as a means of payment 2 TYPES OF MONEY 1. COMMODITY MONIES: 2. FIAT MONIES (TOKEN MONIES): DECREED BY THE GOV T AS LEGAL TENDER. The gov t promises the public that will

More information

Practice Problems on Money and Monetary Policy

Practice Problems on Money and Monetary Policy Practice Problems on Money and Monetary Policy 1- Define money. How does the economist s use of this term differ from its everyday meaning? Money is the economist s term for assets that can be used in

More information

ECON 4110: Money, Banking and the Macroeconomy Midterm Exam 2

ECON 4110: Money, Banking and the Macroeconomy Midterm Exam 2 ECON 4110: Money, Banking and the Macroeconomy Midterm Exam 2 Name: SID: MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) Which of the following

More information

Lecture 10: Money and the Federal Reserve System

Lecture 10: Money and the Federal Reserve System Lecture 10: Money and the Federal Reserve System March 1, 2016 Prof. Wyatt Brooks THE BASIC TOOLS OF FINANCE 0 Question: What Backs US Money? Answer: Nothing. This is true of essentially every currency

More information

Chapter 14. The Money Supply Process

Chapter 14. The Money Supply Process Chapter 14. The Money Supply Process C H A P T E R O B J E C T I V E S By the end of this chapter, students should be able to: 1. Describe who determines the money supply. 2. Explain how the central bank

More information

Lecture Notes on MONEY, BANKING, AND FINANCIAL MARKETS. Peter N. Ireland Department of Economics Boston College. irelandp@bc.edu

Lecture Notes on MONEY, BANKING, AND FINANCIAL MARKETS. Peter N. Ireland Department of Economics Boston College. irelandp@bc.edu Lecture Notes on MONEY, BANKING, AND FINANCIAL MARKETS Peter N. Ireland Department of Economics Boston College irelandp@bc.edu http://www2.bc.edu/~irelandp/ec261.html Chapter 9: Banking and the Management

More information

Describe the functions of the Federal Reserve System (the Fed).

Describe the functions of the Federal Reserve System (the Fed). The Monetary System Chapter CHAPTER CHECKLIST Define money and describe its functions. Money is any commodity or token that is generally accepted as a means of payment. Money serves as a medium of exchange,

More information

Homework (Chapter 11)

Homework (Chapter 11) EC 2113 Principles of Macroeconomics Instructor: Erdenechimeg Eldev-Ochir Name:_ ID: Homework (Chapter 11) Multiple Choice Identify the letter of the choice that best completes the statement or answers

More information

chapter: Solution Money, Banking, and the Federal Reserve System

chapter: Solution Money, Banking, and the Federal Reserve System Money, Banking, and the Federal Reserve System 1. For each of the following transactions, what is the initial effect (increase or decrease) on M1? On M2? a. You sell a few shares of stock and put the proceeds

More information

Money: Definition. Money: Functions. Money: Types 2/13/2014. ECON 3010 Intermediate Macroeconomics

Money: Definition. Money: Functions. Money: Types 2/13/2014. ECON 3010 Intermediate Macroeconomics Money: Definition ECON 3010 Intermediate Macroeconomics Chapter 4 The Monetary System: What It Is and How It Works Money is the stock of assets that can be readily used to make transactions. Money: Functions

More information

Chapter 2. Practice Problems. MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.

Chapter 2. Practice Problems. MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. Chapter 2 Practice Problems MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) Assume that you borrow $2000 at 10% annual interest to finance a new

More information

MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.

MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. Exam Name MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) When a new depositor opens a checking account at the First National Bank, the bank's

More information

THE BANK'S BALANCE SHEET. Lecture 3 Monetary policy

THE BANK'S BALANCE SHEET. Lecture 3 Monetary policy THE BANK'S BALANCE SHEET Lecture 3 Monetary policy THE BANK'S BALANCE SHEET Like any balance sheet, bank balance sheet lines up the assets on one side and the liabilities on the other side. Two sides equal

More information

Chapter 12 Practice Problems

Chapter 12 Practice Problems Chapter 12 Practice Problems 1. Bankers hold more liquid assets than most business firms. Why? The liabilities of business firms (money owed to others) is very rarely callable (meaning that it is required

More information

MACROECONOMICS. The Monetary System: What It Is and How It Works. N. Gregory Mankiw. PowerPoint Slides by Ron Cronovich

MACROECONOMICS. The Monetary System: What It Is and How It Works. N. Gregory Mankiw. PowerPoint Slides by Ron Cronovich 4 : What It Is and How It Works MACROECONOMICS N. Gregory Mankiw Modified for EC 204 by Bob Murphy PowerPoint Slides by Ron Cronovich 2013 Worth Publishers, all rights reserved IN THIS CHAPTER, YOU WILL

More information

Lecture Notes on MONEY, BANKING, AND FINANCIAL MARKETS. Peter N. Ireland Department of Economics Boston College. irelandp@bc.edu

Lecture Notes on MONEY, BANKING, AND FINANCIAL MARKETS. Peter N. Ireland Department of Economics Boston College. irelandp@bc.edu Lecture Notes on MONEY, BANKING, AND FINANCIAL MARKETS Peter N. Ireland Department of Economics Boston College irelandp@bc.edu http://www2.bc.edu/~irelandp/ec261.html Chapter 15c: The Fed s Control of

More information

Macroeconomics, 10e, Global Edition (Parkin) Chapter 25 Money, the Price Level, and Inflation. 1 What is Money?

Macroeconomics, 10e, Global Edition (Parkin) Chapter 25 Money, the Price Level, and Inflation. 1 What is Money? Macroeconomics, 10e, Global Edition (Parkin) Chapter 25 Money, the Price Level, and Inflation 1 What is Money? 1) The functions of money are A) medium of exchange and the ability to buy goods and services.

More information

changes in spending changes in income/output AE = Aggregate Expenditures = C + I + G + Xn = AD

changes in spending changes in income/output AE = Aggregate Expenditures = C + I + G + Xn = AD small larger changes in spending changes in income/output AE = Aggregate Expenditures = C + I + G + Xn = AD The Multiplier Effect A small change in spending gives rise to a larger change in income/output

More information

Money Supply. Key point: if banks hold 100% reserves (i.e., make no loans), they do not change the money supply. 1. Who affects the money supply?

Money Supply. Key point: if banks hold 100% reserves (i.e., make no loans), they do not change the money supply. 1. Who affects the money supply? Money Supply 1. Who affects the money supply? 2. 100% reserve banking 3. Fractional reserve banking 4. Money Supply determination and the money multiplier 5. What causes money supply to change? 6. Instruments

More information

University of Lethbridge Department of Economics ECON 1012 Introduction to Macroeconomics Instructor: Michael G. Lanyi

University of Lethbridge Department of Economics ECON 1012 Introduction to Macroeconomics Instructor: Michael G. Lanyi University of Lethbridge Department of Economics ECON 1012 Introduction to Macroeconomics Instructor: Michael G. Lanyi CH 24 Money Price Inflation 1) Money is A) currency plus coins. B) the same as gold.

More information

(a) Using an MPC of.5, the impact of $100 spent the government will be as follows: 1 100 100 2 50 150 3 25 175 4 12.5 187.5 5 6.25 193.

(a) Using an MPC of.5, the impact of $100 spent the government will be as follows: 1 100 100 2 50 150 3 25 175 4 12.5 187.5 5 6.25 193. S5 Solutions 24 points Chapter 2: Fiscal policy. If the marginal propensity to save is.5, how large is the multiplier? If the marginal propensity to save doubles to., what happens to the multiplier? With

More information

1 Multiple Choice - 50 Points

1 Multiple Choice - 50 Points Econ 201 Final Winter 2008 SOLUTIONS 1 Multiple Choice - 50 Points (In this section each question is worth 1 point) 1. Suppose a waiter deposits his cash tips into his savings account. As a result of only

More information

MONEY, INTEREST, REAL GDP, AND THE PRICE LEVEL*

MONEY, INTEREST, REAL GDP, AND THE PRICE LEVEL* Chapter 11 MONEY, INTEREST, REAL GDP, AND THE PRICE LEVEL* The Demand for Topic: Influences on Holding 1) The quantity of money that people choose to hold depends on which of the following? I. The price

More information

Chapter 17. Preview. Introduction. Fixed Exchange Rates and Foreign Exchange Intervention

Chapter 17. Preview. Introduction. Fixed Exchange Rates and Foreign Exchange Intervention Chapter 17 Fixed Exchange Rates and Foreign Exchange Intervention Slides prepared by Thomas Bishop Copyright 2009 Pearson Addison-Wesley. All rights reserved. Preview Balance sheets of central banks Intervention

More information

國立高雄第一科技大學管理學院暨財金學院 學年度第 2 學期經濟學期末會考題目卷 ( A )

國立高雄第一科技大學管理學院暨財金學院 學年度第 2 學期經濟學期末會考題目卷 ( A ) 國立高雄第一科技大學管理學院暨財金學院 1 0 3 學年度第 2 學期經濟學期末會考題目卷 ( A ) Money and Monetary System 1. When conducting an open-market purchase, the Fed A. buys government bonds, and in so doing decreases the money supply. B.

More information

Chapter 29: The Monetary System Principles of Economics, 7 th Edition N. Gregory Mankiw Page 1

Chapter 29: The Monetary System Principles of Economics, 7 th Edition N. Gregory Mankiw Page 1 Page 1 1. Introduction a. This is a fairly descriptive chapter, but it contains some important material for understanding the world that we live in. b. Money is important for facilitating trade. c. Paper

More information

chapter: Solution Money, Banking, and the Federal Reserve System

chapter: Solution Money, Banking, and the Federal Reserve System Money, Banking, and the Federal Reserve System 1. For each of the following transactions, what is the initial effect (increase or decrease) on M1? or M2? a. You sell a few shares of stock and put the proceeds

More information

MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.

MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. ECON 4110: Sample Exam Name MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) Economists define risk as A) the difference between the return on common

More information

Professional Development. AP Macroeconomics. Monetary Policy. Curriculum Module

Professional Development. AP Macroeconomics. Monetary Policy. Curriculum Module Professional Development AP Macroeconomics Monetary Policy Curriculum Module The College Board The College Board is a not-for-profit membership association whose mission is to connect students to college

More information

Chapter 11 Money and Monetary Policy Macroeconomics In Context (Goodwin, et al.)

Chapter 11 Money and Monetary Policy Macroeconomics In Context (Goodwin, et al.) Chapter 11 Money and Monetary Policy Macroeconomics In Context (Goodwin, et al.) Chapter Overview In this chapter, you will be introduced to a standard treatment of the banking system and monetary policy.

More information

Inside and outside liquidity provision

Inside and outside liquidity provision Inside and outside liquidity provision James McAndrews, FRBNY, ECB Workshop on Excess Liquidity and Money Market Functioning, 19/20 November, 2012 The views expressed in this presentation are those of

More information

Lecture Notes on MONEY, BANKING, AND FINANCIAL MARKETS. Peter N. Ireland Department of Economics Boston College. irelandp@bc.edu

Lecture Notes on MONEY, BANKING, AND FINANCIAL MARKETS. Peter N. Ireland Department of Economics Boston College. irelandp@bc.edu Lecture Notes on MONEY, BANKING, AND FINANCIAL MARKETS Peter N. Ireland Department of Economics Boston College irelandp@bc.edu http://www2.bc.edu/~irelandp/ec261.html Chapter 15a: Introduction to the Money

More information

Econ 202 Section H01 Midterm 2

Econ 202 Section H01 Midterm 2 , Spring 2010 March 16, 2010 PLEDGE: I have neither given nor received unauthorized help on this exam. SIGNED: PRINT NAME: Econ 202 Section H01 Midterm 2 Multiple Choice. 2.5 points each. 1. What would

More information

2.If actual investment is greater than planned investment, inventories increase more than planned. TRUE.

2.If actual investment is greater than planned investment, inventories increase more than planned. TRUE. Macro final exam study guide True/False questions - Solutions Case, Fair, Oster Chapter 8 Aggregate Expenditure and Equilibrium Output 1.Firms react to unplanned inventory investment by reducing output.

More information

Mishkin ch.14: The Money Supply Process

Mishkin ch.14: The Money Supply Process Mishkin ch.14: The Money Supply Process Objective: Show how the Fed controls stocks of money; focus on M1. - Macro theory simply assumes that the Fed can set M via open market operations. - Point here:

More information

Accounts payable Money which you owe to an individual or business for goods or services that have been received but not yet paid for.

Accounts payable Money which you owe to an individual or business for goods or services that have been received but not yet paid for. A Account A record of a business transaction. A contract arrangement, written or unwritten, to purchase and take delivery with payment to be made later as arranged. Accounts payable Money which you owe

More information

2.5 Monetary policy: Interest rates

2.5 Monetary policy: Interest rates 2.5 Monetary policy: Interest rates Learning Outcomes Describe the role of central banks as regulators of commercial banks and bankers to governments. Explain that central banks are usually made responsible

More information

Lecture Notes on MONEY, BANKING, AND FINANCIAL MARKETS. Peter N. Ireland Department of Economics Boston College. irelandp@bc.edu

Lecture Notes on MONEY, BANKING, AND FINANCIAL MARKETS. Peter N. Ireland Department of Economics Boston College. irelandp@bc.edu Lecture Notes on MONEY, BANKING, AND FINANCIAL MARKETS Peter N. Ireland Department of Economics Boston College irelandp@bc.edu http://www2.bc.edu/~irelandp/ec261.html Chapter 17a: The Tools of Monetary

More information

What s on a bank s balance sheet?

What s on a bank s balance sheet? The Capital Markets Initiative January 2014 TO: Interested Parties FROM: David Hollingsworth and Lauren Oppenheimer RE: Capital Requirements and Bank Balance Sheets: Reviewing the Basics What s on a bank

More information

4 Macroeconomics LESSON 6

4 Macroeconomics LESSON 6 4 Macroeconomics LESSON 6 Interest Rates and Monetary Policy in the Short Run and the Long Run Introduction and Description This lesson explores the relationship between the nominal interest rate and the

More information

real r = nominal r inflation rate (25)

real r = nominal r inflation rate (25) 3 The price of Loanable Funds Definition 19 INTEREST RATE:(r) Charge per dollar per period that borrowers pay or lenders receive. What affects the interest rate: inflation. risk. taxes. The real interest

More information

The AD-AS Model and Monetary Policy

The AD-AS Model and Monetary Policy Introduction The AD-AS Model and Monetary Policy Chapter 14 Monetary policy is one of the two main traditional macroeconomic tools to control the aggregate economy. While fiscal policy is controlled by

More information

Macroeconomics, Fall 2007 Exam 3, TTh classes, various versions

Macroeconomics, Fall 2007 Exam 3, TTh classes, various versions Name: _ Days/Times Class Meets: Today s Date: Macroeconomics, Fall 2007 Exam 3, TTh classes, various versions Read these Instructions carefully! You must follow them exactly! I) On your Scantron card you

More information

The Liquidity Trap and U.S. Interest Rates in the 1930s

The Liquidity Trap and U.S. Interest Rates in the 1930s The Liquidity Trap and U.S. Interest Rates in the 1930s SHORT SUMMARY Christopher Hanes Department of Economics School of Business University of Mississippi University, MS 38677 (662) 915-5829 chanes@bus.olemiss.edu

More information

American Options and Callable Bonds

American Options and Callable Bonds American Options and Callable Bonds American Options Valuing an American Call on a Coupon Bond Valuing a Callable Bond Concepts and Buzzwords Interest Rate Sensitivity of a Callable Bond exercise policy

More information

The default rate leapt up because:

The default rate leapt up because: The financial crisis What led up to the crisis? Short-term interest rates were very low, starting as a policy by the federal reserve, and stayed low in 2000-2005 partly due to policy, partly to expanding

More information

I. Introduction. II. Financial Markets (Direct Finance) A. How the Financial Market Works. B. The Debt Market (Bond Market)

I. Introduction. II. Financial Markets (Direct Finance) A. How the Financial Market Works. B. The Debt Market (Bond Market) University of California, Merced EC 121-Money and Banking Chapter 2 Lecture otes Professor Jason Lee I. Introduction In economics, investment is defined as an increase in the capital stock. This is important

More information

QUIZ IV Version 1. March 24, 2004. 4:35 p.m. 5:40 p.m. BA 2-210

QUIZ IV Version 1. March 24, 2004. 4:35 p.m. 5:40 p.m. BA 2-210 NAME: Student ID: College of Business Administration Department of Economics Principles of Macroeconomics O. Mikhail ECO 2013-0008 Spring 2004 QUIZ IV Version 1 This closed book QUIZ is worth 100 points.

More information

Solution. Solution. Money, Banking, and the Federal Reserve System. macroeconomics. economics

Solution. Solution. Money, Banking, and the Federal Reserve System. macroeconomics. economics KrugmanMacro_SM_Ch13.qxp 10/27/05 3:20 PM Page 155 Money, Banking, and the Federal Reserve System 1. For each of the following transactions, what is the effect (increase or decrease) on M1? on M2? a. You

More information

CHAPTER 5. Interest Rates. Chapter Synopsis

CHAPTER 5. Interest Rates. Chapter Synopsis CHAPTER 5 Interest Rates Chapter Synopsis 5.1 Interest Rate Quotes and Adjustments Interest rates can compound more than once per year, such as monthly or semiannually. An annual percentage rate (APR)

More information

account statement a record of transactions in an account at a financial institution, usually provided each month

account statement a record of transactions in an account at a financial institution, usually provided each month GLOSSARY GLOSSARY Following are definitions for key words as they are used in the financial life skills resource. They may have different or additional meanings in other contexts. A account an arrangement

More information

Rigensis Bank AS Information on the Characteristics of Financial Instruments and the Risks Connected with Financial Instruments

Rigensis Bank AS Information on the Characteristics of Financial Instruments and the Risks Connected with Financial Instruments Rigensis Bank AS Information on the Characteristics of Financial Instruments and the Risks Connected with Financial Instruments Contents 1. Risks connected with the type of financial instrument... 2 Credit

More information

The Fed s Balance Sheet and the Monetary Base

The Fed s Balance Sheet and the Monetary Base APPENDIX TO CHAPTER 8 The Fed s Balance Sheet and the Monetary Base Just as any other bank has a balance sheet that lists its assets and liabilities, so does the Fed. We examine each of its categories

More information

FIN 683 Financial Institutions Management Liquidity Management and Deposit Insurance

FIN 683 Financial Institutions Management Liquidity Management and Deposit Insurance FIN 683 Financial Institutions Management Liquidity Management and Deposit Insurance Professor Robert B.H. Hauswald Kogod School of Business, AU Bank Runs Can arise due to concern about: Bank solvency

More information

The Institute of Chartered Accountants of India

The Institute of Chartered Accountants of India CHAPTER 4 SIMPLE AND COMPOUND INTEREST INCLUDING ANNUITY APPLICATIONS SIMPLE AND COMPOUND INTEREST INCLUDING ANNUITY- APPLICATIONS LEARNING OBJECTIVES After studying this chapter students will be able

More information

Mathematics. Rosella Castellano. Rome, University of Tor Vergata

Mathematics. Rosella Castellano. Rome, University of Tor Vergata and Loans Mathematics Rome, University of Tor Vergata and Loans Future Value for Simple Interest Present Value for Simple Interest You deposit E. 1,000, called the principal or present value, into a savings

More information

Money, Banking, and the Federal Reserve Bank (Monetary Policy) Chapter 10, Page 256

Money, Banking, and the Federal Reserve Bank (Monetary Policy) Chapter 10, Page 256 Money, Banking, and the Federal Reserve Bank (Monetary Policy) Chapter 10, Page 256 Money Part I Money Objectives: In this lesson, students will be able to identify characteristic of money and the advantages

More information

International Money and Banking: 12. The Term Structure of Interest Rates

International Money and Banking: 12. The Term Structure of Interest Rates International Money and Banking: 12. The Term Structure of Interest Rates Karl Whelan School of Economics, UCD Spring 2015 Karl Whelan (UCD) Term Structure of Interest Rates Spring 2015 1 / 35 Beyond Interbank

More information

Exam 1 Review. 3. A severe recession is called a(n): A) depression. B) deflation. C) exogenous event. D) market-clearing assumption.

Exam 1 Review. 3. A severe recession is called a(n): A) depression. B) deflation. C) exogenous event. D) market-clearing assumption. Exam 1 Review 1. Macroeconomics does not try to answer the question of: A) why do some countries experience rapid growth. B) what is the rate of return on education. C) why do some countries have high

More information

EC 341 Monetary and Banking Institutions, Boston University Summer 2, 2012 Homework 3 Due date: Tuesday, July 31, 6:00 PM.

EC 341 Monetary and Banking Institutions, Boston University Summer 2, 2012 Homework 3 Due date: Tuesday, July 31, 6:00 PM. EC 341 Monetary and Banking Institutions, Boston University Summer 2, 2012 Homework 3 Due date: Tuesday, July 31, 6:00 PM. Problem 1 Questions 1, 4, 6, 8, 12, 13, 16, 18, 22, and 23 from Chapter 8. Solutions:

More information

Fixed Exchange Rates and Exchange Market Intervention. Chapter 18

Fixed Exchange Rates and Exchange Market Intervention. Chapter 18 Fixed Exchange Rates and Exchange Market Intervention Chapter 18 1. Central bank intervention in the foreign exchange market 2. Stabilization under xed exchange rates 3. Exchange rate crises 4. Sterilized

More information

Financial-Institutions Management. Solutions 5. Chapter 18: Liability and Liquidity Management Reserve Requirements

Financial-Institutions Management. Solutions 5. Chapter 18: Liability and Liquidity Management Reserve Requirements Solutions 5 Chapter 18: Liability and Liquidity Management Reserve Requirements 8. City Bank has estimated that its average daily demand deposit balance over the recent 14- day reserve computation period

More information

Topics in Chapter. Key features of bonds Bond valuation Measuring yield Assessing risk

Topics in Chapter. Key features of bonds Bond valuation Measuring yield Assessing risk Bond Valuation 1 Topics in Chapter Key features of bonds Bond valuation Measuring yield Assessing risk 2 Determinants of Intrinsic Value: The Cost of Debt Net operating profit after taxes Free cash flow

More information

Economics 152 Solution to Sample Midterm 2

Economics 152 Solution to Sample Midterm 2 Economics 152 Solution to Sample Midterm 2 N. Das PART 1 (84 POINTS): Answer the following 28 multiple choice questions on the scan sheet. Each question is worth 3 points. 1. If Congress passes legislation

More information

Some Answers. a) If Y is 1000, M is 100, and the growth rate of nominal money is 1%, what must i and P be?

Some Answers. a) If Y is 1000, M is 100, and the growth rate of nominal money is 1%, what must i and P be? Some Answers 1) Suppose that real money demand is represented by the equation (M/P) d = 0.25*Y. Use the quantity equation to calculate the income velocity of money. V = 4. 2) Assume that the demand for

More information

1. Firms react to unplanned inventory investment by increasing output.

1. Firms react to unplanned inventory investment by increasing output. Macro Exam 2 Self Test -- T/F questions Dr. McGahagan Fill in your answer (T/F) in the blank in front of the question. If false, provide a brief explanation of why it is false, and state what is true.

More information

Account a service provided by a bank allowing a customer s money to be handled and tracks money coming in and going out of the account.

Account a service provided by a bank allowing a customer s money to be handled and tracks money coming in and going out of the account. Account a service provided by a bank allowing a customer s money to be handled and tracks money coming in and going out of the account. Account fee the amount charged by a financial institution for the

More information

DERIVATIVES Presented by Sade Odunaiya Partner, Risk Management Alliance Consulting DERIVATIVES Introduction Forward Rate Agreements FRA Swaps Futures Options Summary INTRODUCTION Financial Market Participants

More information

AGGREGATE DEMAND AND AGGREGATE SUPPLY The Influence of Monetary and Fiscal Policy on Aggregate Demand

AGGREGATE DEMAND AND AGGREGATE SUPPLY The Influence of Monetary and Fiscal Policy on Aggregate Demand AGGREGATE DEMAND AND AGGREGATE SUPPLY The Influence of Monetary and Fiscal Policy on Aggregate Demand Suppose that the economy is undergoing a recession because of a fall in aggregate demand. a. Using

More information

Finance, Saving, and Investment

Finance, Saving, and Investment 23 Finance, Saving, and Investment Learning Objectives The flows of funds through financial markets and the financial institutions Borrowing and lending decisions in financial markets Effects of government

More information

Homework Assignment #5: Answer Key

Homework Assignment #5: Answer Key Homework Assignment #5: Answer Key Write out solutions to the following problems from your textbook. Be sure to show your work on an math and use figures or graphs where appropriate. Chapter 11: #1 Describe

More information

CHAPTER 1. Compound Interest

CHAPTER 1. Compound Interest CHAPTER 1 Compound Interest 1. Compound Interest The simplest example of interest is a loan agreement two children might make: I will lend you a dollar, but every day you keep it, you owe me one more penny.

More information

The Federal Reserve System. The Structure of the Fed. The Fed s Goals and Targets. Economics 202 Principles Of Macroeconomics

The Federal Reserve System. The Structure of the Fed. The Fed s Goals and Targets. Economics 202 Principles Of Macroeconomics Economics 202 Principles Of Macroeconomics Professor Yamin Ahmad The Federal Reserve System The Federal Reserve System, or the Fed, is the central bank of the United States. Supplemental Notes to Monetary

More information

Investing Offers Rewards And Poses Risks. Investment Basics: The Power of Compounding. How Do Americans Invest Their Savings? (HA)

Investing Offers Rewards And Poses Risks. Investment Basics: The Power of Compounding. How Do Americans Invest Their Savings? (HA) How Do Americans Invest Their Savings? (HA) Learning how to save money for future use is an important first step in reaching your long-term goals. But saving alone is not enough. You will also need to

More information

This is Interest Rate Determination, chapter 7 from the book Policy and Theory of International Finance (index.html) (v. 1.0).

This is Interest Rate Determination, chapter 7 from the book Policy and Theory of International Finance (index.html) (v. 1.0). This is Interest Rate Determination, chapter 7 from the book Policy and Theory of International Finance (index.html) (v. 1.0). This book is licensed under a Creative Commons by-nc-sa 3.0 (http://creativecommons.org/licenses/by-nc-sa/

More information

Simple Interest. and Simple Discount

Simple Interest. and Simple Discount CHAPTER 1 Simple Interest and Simple Discount Learning Objectives Money is invested or borrowed in thousands of transactions every day. When an investment is cashed in or when borrowed money is repaid,

More information

Banks, Liquidity Management, and Monetary Policy

Banks, Liquidity Management, and Monetary Policy Discussion of Banks, Liquidity Management, and Monetary Policy by Javier Bianchi and Saki Bigio Itamar Drechsler NYU Stern and NBER Bu/Boston Fed Conference on Macro-Finance Linkages 2013 Objectives 1.

More information

Money Market. The money market is the market for low-risk, short-term debt.

Money Market. The money market is the market for low-risk, short-term debt. Money Market The money market is the market for low-risk, short-term debt. 1 Substitution Different money-market assets are close substitutes. Since an investor in the money market can choose which asset

More information

i T-bill (dy) = $10,000 - $9,765 360 = 6.768% $10,000 125

i T-bill (dy) = $10,000 - $9,765 360 = 6.768% $10,000 125 Answers to Chapter 5 Questions 1. First, money market instruments are generally sold in large denominations (often in units of $1 million to $10 million). Most money market participants want or need to

More information

Interest Cost of Money Test - MoneyPower

Interest Cost of Money Test - MoneyPower Interest Cost of Money Test - MoneyPower Multiple Choice Identify the choice that best completes the statement or answers the question. 1. To determine the time value of depositing $100 in a savings account,

More information

READING 1. The Money Market. Timothy Q. Cook and Robert K. LaRoche

READING 1. The Money Market. Timothy Q. Cook and Robert K. LaRoche READING 1 The Money Market Timothy Q. Cook and Robert K. LaRoche The major purpose of financial markets is to transfer funds from lenders to borrowers. Financial market participants commonly distinguish

More information

Residential Mortgage Finance. Early American Mortgages. Early Mortgage Lenders

Residential Mortgage Finance. Early American Mortgages. Early Mortgage Lenders Residential Mortgage Finance Early American Mortgages Mortgages before the Great Depression Generally were interest only (non- amortizing) loans Had Loan to Value Ratios under 50 % Were short term loans

More information