Money & Banking/ Monetary Supply Video Notes

Unit 4- Part 1

There are three types of money; commodity, representative, and FIAT. Commodity represents good that can also be represented as money. Representative money which is money backed up by gold, and FIAT being the opposite of that. There are also three functions of money; medium of exchange, store of value, and unit of account. Medium of exchange is a substances through which things pass. Store value meaning that you still want money that you could be possibly saving to keep its value, you want it to be worth just as much later. Unit of account deals how price equals worth/value.
This was the information that I was able to learn when watching the video. It was extremely helpful when getting the basic understanding of the types of money and what each one of them actually means. The video was also not complicated to understand too.

Unit 4- Part 3

The price that you pay to get money is the interest rate, meaning that the interest rate would be on your vertical axis. Along your vertical axis you put quantity money on your horizontal axis. The demand of money always slopes down because when the price is high, quantity demanded is low. When the interest rate is low people want to borrow money more. Transaction demand and asset demand are the component of the demand of money. Supply of money is vertical because it does not vary on the interest rate. When increasing demand (shifting left), pressure is put on interest rate causing it to rise; the quantity stays the same because supply of money is vertical. In order to stabilize interest rates, the supply of money must shift to the right.
This video was extremely simple and something that I have already sort of seen before. It went over basic understandings of which there is a slope with the demand of money and the vertical line of supply of money. I found the video extremely helpful.

Unit 4- Part 4

There are three tools of monetary policy that the Fed has; two of these are expansionary and contractionary. If the Fed wants to expand money supply they decrease the required reserves and if they want to contract they would increase the required reserves. If they decrease the required reserves there will be more excess reserves to use on loans. If the Fed wants banks to borrow more money they would lower the discount rate, and if they want to discourage banks they raise the discount rate. To increase money supply the Fed would buy bonds, and to contract the money supply they would sell bonds. The Federal Open Market Committee makes the decisions. The Federal Funds Rate is the rate at which banks borrow money from each; it has nothing to do with the Fed.
This video went expansionary and contractionary dealing with monetary policy. It was something I had already learned before in the previous unit, but the video gave me a more clearer understanding of it and its use in this unit.

Unit 4- Part 7

I found it really hard to retain information from this video. The lady did not explain everything clearly and the work she did on the smart board became confusing after a period of time. I did not find the video as helpful as the previous ones.

Unit 4- Part 8

The video was a review of the work we had been doing in class, it was simple to understand as well.The video was a review of how to find the multiplier and how you apply the required reserve to the problem, specifically to the loans.

Unit 4-Part 9

I found this video hard to understand. The explanations did not really make sense to me. The information videos seem to be the ones that do not have to do with the money demand graphs. I did not find the video very helpful.