Suppose that the Federal Reserve pursued a loose, or easy, monetary policy.  We would then expect _____ to ________, holding all else constant.

The Fed’s primary monetary liabilities is called the _____ and consists of ______ and ______. 

Banks will always hold some quantity of reserves.  On any given day, a bank’s total reserves equal the sum of

Your textbook describes what’s know as “instrument independence” with respect to monetary policy.  To what does this refer?  

Multiple assets are considered money but others, like stocks and bonds, are not.  What ultimately determines whether an asset is money?

Because of their ________ liquidity, ________ U.S. government securities are called secondary reserves.

How might we reduce the principal-agent problem present in equity contracts?

Liabilities on a bank’s balance sheet include

Who is responsible for conducting open market operations?

Depositors at banks like you and I don’t have perfect information about the quality of bank assets.  In extreme cases, this can potentially cause