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Question 5 2 pts Year 2012 2013 2014 Adult Population 2,000 3,000 3,200 Number of Employed 1,400 1,300 1,600 200 600 200 Numb
Question 6 The regional Federal Reserve Banks O are not allowed to make loans to banks in their region. O regulate banks in t
Question 7 2 pts Suppose that in a country people gain more confidence in the banking system and so hold relatively less curr
Question 8 Treasury Bonds are O a medium of exchange, but not a store of value. o neither a store of value nor a medium of ex
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Answer #1

Q5 a) 400

Number of people not in labour force= People who are neither employed nor unemployed are not in the labor force.

Number of people not in labour force= population - employed - unemployed

Number of people not in labour force= 2000-1400-200

Number of people not in labour force= 400

Q6 d) are each headed by Board of Governers

The 12 Federal Reserve Banks are the decentralized element of the U.S. central bank. They are located in Boston, New York, Philadelphia, Cleveland, Richmond, Atlanta, Chicago, St. Louis, Minneapolis, Kansas City, Dallas, and San Francisco. Branches are in 24 other cities. Each Federal Reserve Bank is separately incorporated, with a board of nine directors. Reserve Bank directors, under the supervision of the Board of Governors, oversee their bank's operations and appoint and recommend salaries of the bank's president and first vice president.

Q7 a) increase and money supply will eventually increase.

With less ccash in hand more will be deposited with banks and some portion of it is kept as reserves hence, reserves increases. the excess will be used to give loans increasing money supply.

Q8 d) Both store of value and medium of exchange

One can exchange treasury bond among each other. Also it does not loose value over time.

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