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34. Critical Thinking What point is the cartoonist making about the relationship between the Chairman of the Board of Governors of the Federal Reserve and the performance of the stock market?

Applying Economic Concepts

35. Fractional Bank Reserves Your local bank is required to keep its reserves in the form of vault cash and member deposits with the Fed. Why do you suppose that other assets, such as common stocks or real estate, are not suitable reserves?

36. Barter Assume that you live in a barter society. Compile a list of 10 items that you use frequently, and then identify alternative goods of comparable worth that you would be willing to trade for them.

Analyzing Visuals

37. Look at Figure 14.5 on page 403. How do the differences in the panels reflect the expansion or contraction of the money supply?

Michael Ramirez/Copley News Service

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