Chapter 14: Money and Banking
Q.1
Page 352
In many casinos, a person buys chips to use for gambling. Within the casino's wafts, customers often can use these chips to buy food and drink or even a hotel room. Do chips in gambling casinos serve all three functions of money?
Q.12
Page 352
Why do we call a bank a financial intermediary?
Q.13
Page 352
What does a balance sheet show?
Q. 14
Page 352
What are a bank's assets? What are its liabilities?
Q. 15
Page 352
How do you calculate a bank's net worth?
Q. 16
Page 352
How can a bank end up with negative net worth?
Q. 17
Page 352
What is the asset-liability time mismatch that all
banks face?
Q. 18
Page 353
What is the risk if a bank does not diversify its
loans?
Q.19
Page 353
How do banks create money?
Q.2
Page 352
Can you name some item that is a store of value, but does not serve the other functions of money?
