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1. What is the theoretical definition of money? What is the historical definition of money? What are the uses of money? How do banks create money? What is the definition of money in the US Constitution? Who should create money according to the US constitution? Does US monetary policy always achiever its intended effect? Explain your responses.

2. How does the Fed use open market operations to increase the money supply?

3. If a bank is unable to borrow reserves from the Fed funds market to meet its reserve requirement, where else might it borrow reserves? What is the name of the rate it pays to borrow these reserves?

Microeconomics, Economics

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