Question 9 (1 point)
Which of the following is not considered a function of money?
Question 9 options:
it facilitates exchange |
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it acts as a means of payment |
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it can be held and exchanged for future goods and services |
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it allows banks to lend out funds |
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all of the above are functions of money |
Question 10 (1 point)
Suppose that I find out from a L.L. Bean catalogue that a sweater costs $45. In this case, money is serving as a
Question 10 options:
medium of exchange |
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unit of account |
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store of value |
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double coincidence of wants |
Question 11 (1 point)
Saved
Sam redeems $500 in traveler's checks. He cashes a $100 traveler check, deposits $150 into his checking account, and deposits the remaining $250 into a savings account. How do M1 and M2 change due to these transactions?
Question 11 options:
M1 decreases by $250 and M2 does not change |
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M1 decreases by $400 and M2 increases by $250 |
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M1 does not change and M2 increases by $250 |
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M1 and M2 do not change |
Question 13 (1 point)
Which of the following is a liability of a commercial bank?
Question 13 options:
vault cash |
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loans |
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deposits at the Federal Reserve |
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checking deposits |
9) Money functions as a medium of exchange and payment and can also be held to be used in the future. However, it is not a function of money to be lent out by the banks. So, the correct option will be:
it allows banks to lend out funds
10) Ans: Unit of account
A unit of account is a standard monetary unit of measurement of value/cost of goods, services, or assets. So, here the value of sweater given is a unit of account.
Please post the other questions separately. Thanks and good luck :)
Question 9 (1 point) Which of the following is not considered a function of money? Question...
Please answer all questions. 16) When compared to exchange systems that rely on money, disadvantages of the barter system include A) lowering the cost of exchange to those who would specialize. B) encouraging specialization and the division of labor. C) lowering the cost of exchanging goods over time. D) the requirement of a double coincidence of wants. 17) Which of the following is NOT included in the M1 measure of money but is included in the M2 measure of money?...
2. Multiple Choice Question #2 Sara withdraws $2,000 from her small time deposit account at Bank of America, keeps $400 in cash, and deposits the rest in her checking account at Citibank. What is the immediate change in M1 and M2? O M1 increases by $400 and M2 decreases by $400. O M1 and M2 increase by $2,000. O M1 increases by $2,000 and there is no change in M2. O M1 increases by $2,000 and M2 decreases by M2.
QUESTION 1 2 points Save Answer You are planning on having a garage sale, so you put price tags on all your used goods that you want to get rid of. You are using money as a O a unit of account O a medium of exchange O a store of value QUESTION 2 2 points Save Answer Amanda routinely uses currency to purchase her groceries. She is using money as a O a unit of account O a medium...
Question 13 (1 point) Which of the following is a liability of a commercial bank? Question 13 options: vault cash loans deposits at the Federal Reserve checking deposits
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Question 16 (1 point) Saved Credit cards are considered to be "money substitutes" instead of money because OA) they are not acceptable to pay for purchases. OB) they cannot serve as a temporary medium of exchange. O C) the only function of money they can perform is to serve as a store of value. O D money must eventually be used to pay for the transaction. E) credit card accounts are not chequable. Question 17 (1 point) Until recently, and...
This Question: 1 pt 2 of 15 (1 complete Using the information below compute the M2 money supply Category Currency and coin held by the public Checking account balances Traveler's checks Savings account balances Small denomination time deposits Money market deposit accounts in banks Noninstitutional money market fund shares Amount $700 $1,000 $10 $2.600 $5,000 $1.000 $2.000 The M oney
Question Completion Status: QUESTION 9 The slope of the aggregate demand curve indicates that, as the price level increases, O the aggregate demand curve shifts rightward. the real GDP demanded decreases. the real GDP demanded increases. the aggregate demand curve shifts leftward. QUESTION 10 Checking deposits are commodity money. liabilities for banks. not included in M1 or M2. primarily used as a store of value. QUESTION 11 Suppose the required reserve ratio is 25%. Assuming that banks hold no excess...
1) Which of the following is not a form of commodity money? a) cigarettes b) All of these c) checks d) precious stones 2) Legal tender is a) money that a government has required to be accepted in settlement of debts. b) money that has a value other than as a currency. c) money that must be backed by gold. d) money that must be accepted as payment for goods and services. 3) Sarafina withdraws $450 from her saving account...