| A | B |
|---|
| Money | Lubricant that greases the wheels of economic activity |
| Money | Not just limited to currency, includes demand deposits (checking accounts) issued by banks |
| Money | Plays a key role in influencing the behavior of the economy as a whole and he perfromance of financial institutions and markets |
| Financial markets/institutions | Bringing together buyers & sellers of financial securities to establish prices |
| Financial markets/institutions | The formal setting/mechanism that brings buyers and sellers together to value financial assets |
| Financial markets/institutions | Provides a mechanism for those with excess funds(savers) to lend to those who need funds (borrowers) |
| Financial markets/institutions | Includes banks, savings & loans, credit unions, investment banks & brokers, mutual funds, stock and bond markets |
| Money & the monetary economy | Facilitates transactions within the economy |
| Money & the monetary economy | Principal mechanism through which central banks attempt to influence aggregate economic activity(economic growth, employment, inflation) |
| Money & the monetary economy | economic growth |
| Financial markets | generate prices whenever securities are bought |
| Institutions | value financial assets whenever making loans to businesses or consumers |
| "Banking" in money | banking financial markets refers to banks and other financial intermediaries |
| Federal reserve | is the central bank in the US |
| Deposits | most of the money in the US is represented by |
| Bank examiner | reviews a commercial banks books to determine whether delinquent laons will impair a banks capital |
| Commercial loan officer | examines prospective borrowers books to determine whether bank profits will be improved as a result of a loan |
| Jobs in the private | focus on profits |
| Jobs in the public | focus on safety |
| Large institutions | are market makers in a wide variety of instruments |
| A traders job | entails continuously monitoring market conditions and altering his quotes so he doesn't get stuck with unwanted inventory |
| Stock brokers/account execs. | sell securities to individuals |
| Fed watcher | financial economist at financial institutions |
| Fed watcher | Must pay close attention to the bank reserve equation |
| Office of the controller, FDIC, Fed Reserve Board | each have extensive bank examination staffs |
| Banking | take funds from savers and redepoly these funds by investing or lending |
| Banking | Provide a place where individuals and businesses can invest their funds to earn interest with a minimum risk |
| Banking | serve as the principal caretaker of the economy |
| Banking | intimately involved in how the central bank of the US influences overall economic activity |
| Monetary policy | the fed directly influences the lending & deposit creation activities of banks |
