Money Demand And Money Supply Jeopardy Template

Financial Markets	Demand for Money	Money Supply	Equilibrium in Financial Market	Open Market Operations
100 Currency This pertains to coins and bills.	100 Total transactions or total nominal income We can measure the demand for money through the _____________ of the economy.	100 False True or False. Money supply is dependent to interest.	100 False True or False. If nominal income increases, interest rate decreases.	100 True True or False. Fiscal policy deals with government spending.
200 Checkable deposits These are bank deposits which you can write checks	200 False True or False. Demand for money is positively related to interest.	200 False True or False. Money supply is determined by the consumers.	200 True True or False. Decrease in money supply leads to an increase in the interest rate.	200 Bureau of Treasury What specific government agency is responsible for selling bonds? (clue: it is under the Department of Finance)
300 True True or False. Money pays no interest.	300 M=YL(i) Provide the model for money demand	300 Money outside depository institutions, peso savings and time-deposit accounts. What is included in M2 of the money supply categories?	300 Interest rate increases. What is the effect to the equilibrium if the nominal income increases?	300 Monetary Policy deals on how the central bank regulates or controls the supply of money in the bonds market. What is Monetary Policy?
400 Money This is used for transactions.	400 You should diversify your money. What do you mean by do not put all your eggs in one basket?	400 Money circulated in the economy or money outside depository institutions. What is included in M1?	400 Interest rate decreases. What is the effect to the equilibrium if the supply of money increases?	400 increase in the prices of bonds and decrease in interest In the OMO, increase in the money supply leads to ___________.
500 There is only one type of bond and it pays, i , the interest rate. What is the assumption regarding the type of bond?	500 Total national nominal income and total transaction in the economy. How do you measure demand for money?	500 It is vertical because it is independent from the interest rate and money demand. Hence, only the BSP could determine the money supply. Why is money supply curve vertical?	500 Money supply should be equal to money demand. What is the requirement of equilibrium condition in the financial market?	500 T-bills mature for less than a year while treasury bonds matures beyond 1 year. Differentiate T-bills from Treasury bonds.

Money Demand and Money Supply

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