Money and Monetary Policy by James DeNicco

About the Lecture

The lecture Money and Monetary Policy by James DeNicco is from the course Principles of Macroeconomics (EN). It contains the following chapters:

Introduction: Money and Monetary Policy
Roles of Money
3 Ways of Controlling the Money Supply
What Effects Money Demand / Open Economy: Nominal Exchange Rates
Real Exchange Rates
The Effects of Monetary Policy

Included Quiz Questions

Which of the roles of money pertains to the following? Instead of having to trade bread to the butcher for beef, I give the butcher money for beef so that he can buy his own bread.

Medium of Exchange.
Unit of Account.
Store of Value.
None of the above.

Which of the following would constitute a contractionary monetary policy?

Open market sales of bonds.
Lowering the reserve requirement.
Open market purchases of bonds.
Lowering the Discount Rate.

If the euro(€) depreciates against the U.S. dollar($), it becomes...

...cheaper for Americans to buy European products but more expensive for Europeans to buy American products.
...cheaper for Americans to buy European products and cheaper for Europeans to buy American products.
...more expensive for Americans to buy European products but cheaper for Europeans to buy American products.
...more expensive for Americans to buy European products and more expensive for Europeans to buy American products.

Expansionary monetary policy would _______ interest rates and _______ the U.S. dollar, leading to a(an) _______ in U.S. net exports.