Google
Saturday 
September 22, 2018 

AmosWEB means Economics with a Touch of Whimsy!

AmosWEBWEB*pediaGLOSS*aramaECON*worldCLASS*portalQUIZ*tasticPED GuideXtra CrediteTutorA*PLS
VALUE IN EXCHANGE: The ability to trade an item, especially money, for other goods and services that can then be used to satisfy wants and needs. Value in exchange means that value, that is satisfaction, is obtained indirectly through the acquisition of something else. For an item to have value in exchange it need NOT have value in use, value obtained directly from the consumption of a good or service.

Visit the GLOSS*arama

Most Viewed (Number) Visit the WEB*pedia

Lesson Contents
Unit 1: What It Is
  • Banking
  • Intermediary
  • Unit 1 Summary
  • Unit 2: Banking Details
  • Types
  • Commercial Banks
  • S&Ls
  • Credit Unions
  • Savings Banks
  • Balance Sheet
  • Unit 2 Summary
  • Unit 3: Reserve Banking
  • Reserves
  • Legal, Required, and Excess Reserves
  • Goldsmith
  • Goldsmith Deposits
  • Goldsmith Loans
  • Goldsmith Reserves
  • Unit 3 Summary
  • Unit 4: Regulating Banks
  • Why?
  • Who?
  • How?
  • Unit 4 Summary
  • Unit 5: The Economy
  • Benefits
  • Problems
  • Unit 5 Summary
  • Course Home
    Banking

    In this lesson, we take a look at the role banking plays in the macroeconomy. Banking is most important to the study of macroeconomics because a substantial fraction of the economy's money supply is under the direct control of commercial banks (as opposed to government). Because government needs to control the money supply to promote business-cycle stability, they need to control banks control of the money supply. As such, we need to take a look at how banks operate, including how they issue the deposits that make up the money supply.

    • The first unit opens this lesson with an overview of banks and the banking system, including their role as financial intermediaries.
    • Moving into the second unit, we take a closer look at the banking system, especially the four basic types of banks (banks, savings and loans, credit unions, and mutual savings banks) and the assorted assets and liabilities of a typical bank.
    • The key banking principle -- fractional-reserve banking -- is then discussed in the third unit with a little story about Fred the Goldsmith.
    • The fourth unit of this lesson discusses the why, how, and who of bank regulation.
    • The fifth and final unit then examines the benefits and problems of fractional-reserve banking for the macroeconomy.

    BEGIN Lesson =>


    <=PREVIOUS Lesson | NEXT Lesson =>

    AUTONOMOUS EXPORTS

    Exports to the foreign sector that do not depend on domestic income or production (especially national income or gross domestic product). Exports depend on foreign income or production, but not on domestic income or production. While other expenditures have both autonomous and induced components, exports are exclusively autonomous. Autonomous exports are a key part of the autonomous part of net exports. Induced net exports are due to induced imports.

    Complete Entry | Visit the WEB*pedia


    APLS

    ORANGE REBELOON
    [What's This?]

    Today, you are likely to spend a great deal of time waiting for visits from door-to-door solicitors hoping to buy either one of those memory foam pillows or a remote controlled train set. Be on the lookout for broken fingernail clippers.
    Your Complete Scope

    This isn't me! What am I?

    Parker Brothers, the folks who produce the Monopoly board game, prints more Monopoly money each year than real currency printed by the U.S. government.
    "Always remember that striving and struggle precede success, even in the dictionary. "

    -- Sarah Ban Breathnach, writer

    AER
    American Economic Review
    A PEDestrian's Guide
    Xtra Credit
    Tell us what you think about AmosWEB. Like what you see? Have suggestions for improvements? Let us know. Click the User Feedback link.

    User Feedback



    | AmosWEB | WEB*pedia | GLOSS*arama | ECON*world | CLASS*portal | QUIZ*tastic | PED Guide | Xtra Credit | eTutor | A*PLS |
    | About Us | Terms of Use | Privacy Statement |

    Thanks for visiting AmosWEB
    Copyright ©2000-2018 AmosWEB*LLC
    Send comments or questions to: WebMaster