Functions List three functions served by banks. Money Describe three basic functions of money. Payments Explain the evolution of the American payments system into its present form. Money supply List two approaches to measuring the money supply. Distinguish among the four measures of money used by the Federal Reserve System.
Financial markets Describe the basic function of financial markets.
List the four classifications of financial markets. Explain the four characteristics of financial markets. Financial intermediaries Identify three major categories of financial intermediaries. Explain why and how the government regulates financial markets. Interest rates List three methods of measuring interest rates.