1. Why does inflation make money an imperfect store of value?
2. Why are travelers' checks classified as money, but credit cards are not?
3. What really gives money value?
4. Why do banks keep excess reserves to a minimum?
5. Why does the money supply grow by an amount much greater than the initial amount of a loan made by a bank?
6. Note the difference between the federal funds rate and the prime rate.
7. The Fed has been trying to help the economy out of recession since 2008. What policies has the Fed pursued? Have these policies been successful?
8. Interest rates today are at historic lows, yet the economy is still struggling. What other factors might be at work causing businesses and households not to borrow and spend?
9 .Why might a strengthening of the U.S. Dollar be a good thing?
10. Why does contractionary monetary policy cause interest rates to rise?
11. Why does expansionary monetary policy causes interest rates to drop?