Lower Level: An introduction to the role of commercial banks, other financial institutions, and the central bank in affecting the performance of the economy; relationships of monetary and fiscal policy in an open economy to prices, production, and employment.
Upper Level: The role of commercial banks, other financial institutions, and the central bank in affecting the performance of the economy; relationships of monetary and fiscal policy in an open economy to prices, production, and employment.
By the end of this section, you will be able to:
Contrast M1 money supply and M2 money supply
Classify monies as M1 money supply or M2 money supply
By the end of this section, you will be able to:
Explain how banks act as intermediaries between savers and borrowers
Evaluate the relationship between banks, savings and loans, and credit unions
Analyze the causes of bankruptcy and recessions