What are the four functions served by money?
How does the existence of money simplify the process of buying and selling?
What is the double-coincidence of wants?
What components of money are counted as part of M1?
What components of money are counted in M2?
Why is a bank called a financial intermediary?
What does a balance sheet show?
What are the assets of a bank? What are its liabilities?
How do you calculate the net worth of a bank?
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?