Notes, summaries, assignments, exams, and problems for University

The Money Multiplier

With just a little mathematical manipulation, we can express the real-world money multiplier (m) as a function of the required reserve ratio (RRR), the excess-reserves ratio (ER/D), and the currency-deposit ratio (C/D). To find m, all we need are the values of the C/D and ER/D ratios. (We already know that RRR = .10, or 10%.) Alternatively, we could compute m with values for C, D, and ER.

Studying the multiplier effect is crucial because, unlike what basic economics states, the money supply is not fully controlled by the Fed. Instead, the Fed does have access to the monetary base, but the multiplier effect will depend on the monetary decisions of financial institutions and the general public.

Factors Affecting the Money Multiplier

Several... Continue reading "The Money Multiplier: Factors and Effects" »

The seven principles stated on the article are:

1.)Price stability provides substantial benefits

Low and stable inflation prevents overinvestment in the financial sector which otherwise would be a way to escape the costs of inflation. It lowers uncertainty enabling businesses and individuals to make appropriate decisions, increasing economic efficiency and finally lowers distortions from interactions between the tax systems and inflation (Better employment of resources and increase economic growth).

2) Fiscal policy should be aligned with monetary policy;

Large government deficits place pressure on monetary authorities to monetize debt, producing rapid money growth and inflation.

3) Time inconsistency is a serious problem to be avoided;

Motivation... Continue reading "Principles of Monetary Policy and the Fed's Performance" »

Articles of Confederation

An agreement among the thirteen original states, approved in 1781, that provided a loose federal government before the present Constitution went into effect in 1789. There was no chief executive or judiciary, and the legislature of the Confederation had no authority to collect taxes.

Common Sense

Sound and prudent judgment based on a simple perception of the situation or facts.

Declaration of Independence

The proclamation made by the Second American Continental Congress on July 4, 1776, which asserted the freedom and independence of the 13 Colonies from Great Britain.

Hessian

A native of Hesse; a German mercenary serving in the British forces during the American Revolution.

Loyalist

A person who remained loyal to the British... Continue reading "Key Terms of the American Revolutionary Era" »

Impressionism and 20th-Century Techniques in Music

Debussy: Prelude Genre

What genre is Debussy's Prelude to the Afternoon of a Faun? Symphonic poem (tone poem).

Impressionism Versus the Romantic Era

How is the Impressionistic era different than the Romantic era? Static and nonfunctional harmony; focus on timbre instead of melody and harmony; suggestions of melodic ideas rather than complete ideas.

Ravel's Bolero and Orchestration

What is significant about Ravel's Bolero? The piece repeats the same two melodies but always in different groups of instruments. The piece is essentially a study in orchestration, an example of impressionists' focus on timbre over melody.

Term for Music with No Key

What is the term for music that has no key? Atonal.

Serialism

Oceanography: Earth's Marine Realm

Ocean Coverage and Resources

Oceans cover 71% of Earth's surface and hold 97% of its water. They provide crucial resources, including one-third of natural gas and oil, 16% of protein, and 50% of our oxygen.

Maps and Projections

A map is a representation, usually on a flat surface, of a region of Earth or the heavens. A projection is the image of a geometric figure reproduced on a line, plane, or surface.

Types of Maps:

• Political
• Physiographic
• Geologic
• Topographic
• Bathymetric

Ocean Provinces

• Continental Margins: Shallow areas close to shore.
• Deep-Ocean Basins: Deep-water areas farther from land.
• Mid-Ocean Ridge: A submarine mountain range.

Geological Features

Hot spots are plumes originating from the core-mantle boundary.... Continue reading "Oceanography: Exploring Earth's Vast Marine Realm" »

Radioactive Decay: Principles and Equations

If the decay rate is equal to λ, the probability that a given nucleus will decay in a small time interval dt is λdt. Therefore, if at any time we have P parent nuclei, the number that decay in the next moment is P(λdt).

The rate of change of parent nuclei (dP/dt) is proportional to the number of parent nuclei present:

dP/dt = -λP

This differential equation can be solved as follows:

• Separate variables: dP/P = -λdt
• Integrate both sides: ∫(dP/P) = -λ∫dt
• Resulting in: ln(P) = -λt + C

The boundary condition is found because we know that when t = 0, P = P₀ (the initial number of parent nuclei). Therefore, C = ln(P₀), and we can write the equation as:

ln(P) = ln(P₀) - λt

Rearranging this equation:

• ln(P)

Grammar and Vocabulary

1. I have lost my pen. Can I borrow yours?
2. As soon as I have more information, I will call you.
3. Did you know she was pregnant?
4. We have had this can since last summer.
5. When I lived in Hungary, I had to take a bus to go to work.
6. Would you mind answering my questions?
7. 80% of our electronic components are produced in the Far East.
8. The manager and his staff usually meet once a week.
9. What are you responsible for?
10. When did you arrive at the hostel?
11. The way of managing companies in this country is very different from ours.
12. Has she answered your email yet?
13. You will have to work hard if you really want to pass the exam.
14. He never drinks any alcohol when he goes to parties.
15. Have you got something to declare?
16. The plane was four hours late.
17. Driving too

Analytics and Statistics: Key Concepts

Analytics: the scientific process of transforming data into insight for making better decisions. Population: the set of all elements of interest in a particular study. Sample: a subset of the population. Data: the facts and figures collected, analyzed, and summarized for presentation and interpretation. Cross-sectional data: data collected at the same or approximately the same point in time. Statistics: the art and science of collecting, analyzing, presenting and interpreting data. Variable: a characteristic of interest for the elements. Data set: all the data collected in a particular study. Elements: the entities on which data are collected.

Data Summary

1. Cumulative Frequency Distribution: a tabular summary... Continue reading "Understanding Analytics and Statistics: Key Concepts and Definitions" »

CHAPTER 3

Financial Intermediation and Depository Institutions

Quiz

1. ____________ is the process by which individual savings are accumulated in depository institutions where the funds are then loaned out to consumers or invested in businesses.

1. Savings/investment
2. Financial intermediation
3. Contractual savings
4. Mortgage banking

Answer: b

2. Contractual savings organizations provide all of the following services with the exception of __________.

1. Collecting premiums on insurance policies
2. Accepting deposits or savings from individuals and then lending these pooled savings to businesses.
3. Providing retirement benefits and insurance against major financial losses.
4. Collecting employee or employer contributions from pension fund participants.

Answer: b

3. __________