Marginal URLs:
- p. 395: Go to http://www.federalreserve.gov/releases/h3/Current/ to see Federal Reserve reports on the current amounts of required and excess reserves at U.S. depository institutions.
- p. 410: To learn more from the Federal Reserve Bank of St. Louis about the growth of sweep accounts, go to http://research.stlouisfed.org/aggreg/, and under "Retail Deposit Sweep Programs," click on "Article: Sweeps Distort M1 Growth." For the latest data, back up and click on "Data: Federal Reserve Board Data on OCD Sweep Account Programs."
- p. 412: To keep up with the latest issues in deposit insurance and banking with the assistance of the FDIC, go to http://www.fdic.gov/.
Issues and Applications—Web Resources:
Economics on the Net:
E-Checks and the Money Supply
In this chapter, you learned about how monetary policy actions of the Federal Reserve induce changes in total deposits in the banking system. Now let's think about monetary policymaking in a world with online checking.
Title: The eCheck's in the E-Mail
Navigation: Go to http://www.dummies.com/WileyCDA/DummiesArticle/The-eCheck-s-in-the-E-Mail.id-2978.html
Application: Read the discussion, and then answer the following questions.
- Are e-checks substitutes for currency and coins, or are they substitutes for traditional paper checks? Does the answer to this question make a difference for how e-checks are likely to feature in the money multiplier process?
- Suppose that there is widespread adoption of e-check technology by consumers and businesses. Would this affect the basic money multiplier model that we developed in this chapter? If so, how? If not, why not?
