What are the four functions that money serves?
How does the existence of money simplify the process of buying and selling?
What is the double-coincidence of wants?
What components of money do we count as part of M1?
What components of money do we count in M2?
Why do we call a bank a financial intermediary?
What does a balance sheet show?
What are a bank's assets? What are its liabilities?
How do you calculate a bank's net worth?
How can a bank end up with negative net worth?
What is the asset-liability time mismatch that all banks face?
What is the risk if a bank does not diversify its loans?
How do banks create money?
What is the formula for the money multiplier?