Video Notes (Unit 4)

Video Part 1

There are three types of money; commodity, representative, and FIAT. Commodity represents good that can also be represented as money. Representative money which is money backed up by gold, and FIAT being the opposite of that. There are also three functions of money; medium of exchange, store of value, and unit of account. 
This was the information that I was able to learn when watching the video. It was extremely helpful when getting the basic understanding of the types of money and what each one of them actually means. The video was also not complicated to understand too.

Part 3

First, I found that labeling your axis' are most important thing for the money market graph

Along your vertical axis you put quantity money on your horizontal axis. The price that you pay to get money is the interest rate, meaning that the interest rate would be on your vertical axis.The demand of money always slopes down because when the price is high, quantity demanded is low. When the interest rate is low people want to borrow money more. Transaction demand and asset demand are the component of the demand of money. Supply of money is vertical because it does not vary on the interest rate. When increasing demand (shifting left), pressure is put on interest rate causing it to rise; the quantity stays the same because supply of money is vertical. In order to stabilize interest rates, the supply of money must shift to the right.

This video was extremely simple and something that I have already sort of seen before. It went over basic understandings of which there is a slope with the demand of money and the vertical line of supply of money. I found the video helpful.

Part 4

Exansionary- Easy Money

Contractinary- Hard Money

There are three tools of monetary policy that the Fed has; expansionary and contractionary. If the Fed wants to expand money supply they decrease the required reserves and if they want to contract they would increase the required reserves. If they decrease the required reserves there will be more excess reserves to use on loans. If the Fed wants banks to borrow more money they would lower the discount rate, and if they want to discourage banks they raise the discount rate. To increase money supply the Fed would buy bonds, and to contract the money supply they would sell bonds. The Federal Open Market Committee makes the decisions. The Federal Funds Rate is the rate at which banks borrow money from each; it has nothing to do with the Fed.
This video included went expansionary and contractionary dealing with monetary policy. It was a good review of previously learned ideas.

Part 7

This video was different from the others. When it comes to the loanable funds market, it is difficult to understand as it is being written on the board. I had a previous understanding of this topic, so I felt i could bring more to the table than the teacher did. I found this video as the least helpful. 

Part 8

This video was probably the most basic. You find your multiplier. It had a list of steps for that.

It taught how to find the reserves, and what they are in the total equation. This is a good review of what we learned in class.

Part 9

This video dealt with demand graphs. It was not as difficult to understand the basic principle of the graph. I found it important to label the axis correctly, and to understand which curve is shifting, why, and what other factors change along with it. I found this very helpful.