Question

17.

Financial intermediaries exist primarily because

Select one:

a. they are part of the U.S. Treasury.

b. they are part of the Federal Reserve System.

c. of historical accident.

d. they can make a profit.

e. of federal mandates.

15.

When a hyperinflation occurs,

Select one:

a. velocity remains constant.

b. velocity increases.

c. velocity decreases.

d. the product of velocity and money declines.

e. the product of velocity and money remains constant.

14. When something is generally accepted as a means of payment, such as grain in many traditional societies, we say that this represents

Select one:

a. money as a medium of exchange.

b. money as a store of value.

c. money as a unit of wealth.

d. an inflationary danger.

e. a government opportunity for social control.

Answer 1

17. Option D. they can make a profit.

Explanation: Financial intermediaries can make a profit by making loanable funds available to borrowers.

15. Option B. d. they can make a profit.

Explanation: In hyperinflation, they price level rises by a high rate.

14. a. money as a medium of exchange.

Explanation: When money is used to make payments, it is assumed to act as a medium of exchange.