6. 1 The Nature of Financial Intermediation 6. 2 Depository Financial Institutions The deposit liabilities of these institutions form the cornerstones of the money supply. Generally speaking, commercial banks are the largest depository institutions
5. 1 The Government Bond Market 5.1.1 when the government runs a deficit, it has to get the funds. There are three ways for the government to get funds
8.1 Definition of Monetary Policy Government policy concerning money and credit conditions, especially the rate of growth in the money supply and the level of interest rates