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RISK NEUTRAL: A person who values a certain income the same as an equal amount of income that involves risk or uncertainty. Let's say that you're given two options--(A) a guaranteed $1,000 or (b) a 50-50 chance of getting either $500 or $1,500. If you don't really care which option you chose, because both options have the same "expected" values, then you're risk neutral.
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Lesson 19: Money Creation | Unit 4: The Multiplier
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Page: 19 of 23
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- That a multiplier captures the magnified relationship between deposit creation and extra bank reserves.
- That the multiplier can be expressed with an equation: D = mR.
- That the key to the deposit multiplier is required reserves and that the deposit multiplier is the inverse of the reserve ratio.
- Other factors that influence the total amount of money created:
- Banks keep excess reserves.
- Money leaks out checkable deposits into savings deposits.
- Customers keep some deposit-creating loans in cash.
- That the Federal Reserve uses a complex money multiplier in trying to control the amount of money circulating in the economy.
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AMERICAN ASSOCIATION FOR THE ADVANCEMENT OF SCIENCE A scientific society whose main mission is to advance science and innovation throughout the world. The American Association for the Advancement of Science (AAAS for short) publishes one of the most respected scientific magazines called Science. The association and magazine have nearly 140,000 individual and institutional subscribers, plus 272 affiliated organizations in more than 130 countries, serving a total of 10 million individuals. The American Association for the Advancement of Science was founded in 1848 to represent all disciplines of science and to support scientific exchange and discussion of science and society issues.
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RED AGGRESSERINE
[What's This?]
Today, you are likely to spend a great deal of time at a going out of business sale hoping to buy either galvanized steel storage shelves or a large green chalkboard shaped like the state of Maine. Be on the lookout for neighborhood pets, especially belligerent parrots.
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This isn't me! What am I?
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Only 1% of the U.S. population paid income taxes when the income tax was established in 1914.
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"Lord, where we are wrong, make us willing to change; where we are right, make us easy to live with. " -- Peter Marshall, US Senate chaplain
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PPF
Production Possibilities Frontier
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