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DEMAND AND SUPPLY INCREASE: A simultaneous increase in the willingness and ability of buyers to purchase a good at the existing price, illustrated by a rightward shift of the demand curve, and an increase in the willingness and ability of sellers to sell a good at the existing price, illustrated by a rightward shift of the supply curve. When combined, both shifts result in an increase in equilibrium quantity and an indeterminant change in equilibrium price.
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Lesson 20: Federal Reserve System | Unit 4: Monetary Policy
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Page: 16 of 20
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Topic:
Reserve Requirements
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Reserve requirements are the regulations the Fed uses to ensure banks keep enough reserves to back deposits.- In principle, reserve requirements can be used to control the money supply. In practice, reserve requirement changes would cause serious bank instability.
- The Federal Reserve System is charged with ensuring that banks keep enough reserves, through legal reserve requirements.
- Reserve requirements change over the years, keeping pace with the changing structure of the banking system.
- They are currently in the 1% to 3% for checkable deposits. These are the reserves that banks use to cash checks, process checks, and conduct daily business.
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AVERAGE COST The opportunity cost incurred per unit of good produced. This is calculated by dividing the cost of production by the quantity of output produced. While average cost is a general term relating cost and the quantity of output, three specific average cost terms are average total cost, average variable cost, and average fixed cost. A related cost term is marginal cost.
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GREEN LOGIGUIN
[What's This?]
Today, you are likely to spend a great deal of time surfing the Internet looking to buy either a remote controlled World War I bi-plane or a wall poster commemorating Thor Heyerdahl's Pacific crossing aboard the Kon-Tiki. Be on the lookout for deranged pelicans.
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The penny is the only coin minted by the U.S. government in which the "face" on the head looks to the right. All others face left.
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"Act well at the moment, and you have performed a good action for all eternity." -- Johann Kaspar Lavater
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ILO
International Labor Office
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