Video Responses

Video 1
There are three types of money. Those types are commodity money, representative money, and fiat money. Commodity money are the things that also work as if it is money. Representative money is not the the real currency but it represents the same amount of value of the actual currency. A drawback of representative money is when the value of the metal changes, then the value of the currency is affected. Fiat money is the value of money the government says the money is worth.

Video 2
To graph the money market, you have to make sure the axes are labeled correctly. The Y-axis is the interest rate and the X-axis is the quantity of money. Demand of money is downward sloping, this shows the prices and money are inversely related. Supply of money is vertical because it doesn't change based on the interest rate. It is fixed and set by the Fed. Quantity equilibrium and the interest rate must be labeled also.

Video 3
 There are things the Fed does to increase money supply (expansionary or easy money) and decrease money supply (contractionary or tight money). The Fed has three choices they can use to obtain their goal.  They can change the required reserves, discount rate, and the OMO, which is buy or sell bonds, Open Markets Operations. Reducing or increasing the required reserves and discount rate are reasons for the banks to react to the the change, and does not promise a change in the money supply.

Video 4
 The loanable fund market is labeled and is connected to the money market.  Identical to the money market the interest rate goes to the y-axis and quantity goes to the x-axis, but converted to loanable funds. The supply of loanable funds in this case is upward slopping depending on savings for banks to be able to loan out.  The demand for more increase demand of loans thus increasing the interest rate, but i can as well decrease the supply of loanable funds.

Video 5
Banks make loans to create money. To find the monetary multiplier you take 1 and divide it by the reserve ratio. One of the Fed's tools for monetary policy is the ability to adjust the reserve requirement. The Reserve requirement tells how much money will be availiable for the public.