Scheduled maintenance: Saturday, September 10 from 11PM to 12AM PDT Show
Home Subjects Solutions Create Log in Sign up Upgrade to remove ads Only A$47.99/year
Terms in this set (51)In macroeconomics, ___________________________ describes a situation in which two people each want to exchange some good or service that the other can provide. A. a medium of exchange B Which of the following is omitted in a barter transaction? A. trade D If Bill performs plumbing upgrades for Alice in exchange for her incorporating his business, then their _________________________ will be satisfied. A. balance of trade B ____________ is a completely inadequate mechanism ____________________ in a modern advanced economy. A. Currency; for providing a medium of exchange C In macroeconomics, a _______________ describes the common way in which market values are measured in an economy. A. unit of account A In uncertain economic times, ____________________ serves as a way of preserving economic value that can be spent or consumed in the future. A. buying a new car B In modern economies, credit cards are a _________________ because of their wide acceptance as a method of payment for both goods and services. A. unit of exchange D ________________ serves society in three functions: medium of exchange, unit of account, and store of value. A. Money A Lance paid $175,000 for his house in 2003 and sold it for $325,000 in 2006. What function did the house serve during the time Lance owned it? A. medium of exchange C In 2010, Tara used $50,000.00 from funds she had invested in certificates of deposit as a down payment to buy a house. What function did this portion of her investments serve when she made the down payment? A. unit of exchange. B Which of the following would function as a store of value, and also provide a medium of exchange, and unit of account? A. a new car C If mollusk shells were accepted as a method of payment in modern-day markets, what economic role would they play in the financial system? A. capital exchange D Which of the following is a valid criticism of the use of money as a store of value in modern economies? A. annual inflationary loss of buying power A Which of the following would be classified in the M1 category of the money supply? A. savings deposits C With respect to measuring the money supply, which of the following terms describes a checking account? A. demand certificates D _________________________ are included in the aggregate amount of MI money currently in circulation. A. Savings deposits B Which category of the money supply would you be contributing to if you invest in money market funds? A. M2 A Which of the following terms is considered to be a narrow definition of the money supply that includes, among other things, currency? A. savings D Antonio tries to limit his risk of overexposure to debt by using a ________________ to store a certain amount of value that he then uses to make purchases. A. debit card C If Brent uses his credit card to purchase a new television, then the money to pay the retailer is taken from: A. his M1 funds. C If Evelyn uses her debit card to buy an iPod, then the money to pay the retailer will come from: A.
the debit card company's M1 funds. D If Sarah uses her smart card to purchase movies over the internet, then the money to pay the retailer will come from: A. Sarah's M1 funds. A Stealth bank has deposits of $600 million. It holds reserves of $30 million and government bonds worth $80 million. If the bank sells its loans at market value of $400 million, what will its total assets equal? A. $110 million D Stealth bank holds deposits of $600 million. It holds reserves of $30 million and government bonds worth $80 million. The current market value of the bank's loans is $400 million. What is the value of the bank's total liabilities? A. $600 million A Stealth bank has deposits of $700 million. It holds reserves of $20 million and has purchased government bonds worth $350 million. The bank's loans, if sold at current market value, would be worth $600 million. What does Stealth bank's net worth equal? A. $120 million B Stealth bank has deposits of $700 million. It holds reserves of $20 million and has purchased government bonds worth $350 million. The banks loans, if sold at current market value, would be worth $600 million. What is the total value of Stealth bank's assets? A.
$1.3 billion C Stealth bank holds deposits of $200 million. It holds reserves of $15 million. It has purchased government bonds worth $75 million. The current value of its loans, if sold at market value, is $130 million. What is the value of the Stealth bank's liabilities? A. $20 million B Stealth bank has deposits of $350 million. It holds reserves of $30 million and government bonds worth $70 million. If the bank sells its loans at market value of $400 million, what will its total assets equal? A. $500 million A Stealth bank has deposits of $300 million. It holds reserves of $20 million and has purchased government bonds worth $300 million. The bank's loans, if sold at current market value, would be worth $600 million. What does Stealth bank's net worth equal? A. $20 million B Why do banks use a T-account? A. if a bank has become bankrupt, net worth will be shown as a zero on the balance sheet C In modern economies, _____________________ receive money from savers and provide funds to borrowers. A. governments D ___________are funds that the bank keeps on hand that are not loaned out or invested in bonds. A. Certificates of deposit B In macroeconomics, _____________________________ describes a situation where a bank's liabilities can be withdrawn in the short-term while its assets are being repaid in the long-term. A. diversification C Banks can protect themselves against an unexpectedly high rate of loan defaults and against the risk of ____________________ by adopting a strategy that will ______________. A. rising interest rates; diversify its
loans D The money multiplier is equal to the _______________ in the economy divided by the original _________________. A. total money; quantity of money A The quantity of money in an economy and the _____________________ are inextricably intertwined. A. value of assets for loans B The process of banks making loans in financial capital markets is intimately tied to the: A. redistribution of wealth. C Banks typically come under financial stress because of: A. the money multiplier effect. B If loans become far less available, then sectors of the economy that ______________ like business investment, home construction, and car manufacturing can be dealt a crushing blow. A. depend on borrowed money A If the central bank increases the amount of reserves banks are required to hold to 20%, then: A. the money multiplier will increase and the supply of money in the economy will decrease. D If the central bank decreases the amount of reserves banks are required to hold from 20% to 10%, then: A. the money multiplier will increase and the supply of money in the economy will decrease. C _________________________ are a form of deposits held in banks that are available by making a cash withdrawal or writing a check. A. Direct deposits D __________________ pool the deposits of many investors together and invest them in a safe way like short-term government bonds. A. Money market funds A _______________________ that require the depositor to commit to leaving their funds in the bank for a certain period of time, in exchange for a higher rate of interest are also called ________________. A. Demand deposits; certificates of deposit B The term ___________________ describes the proportion of deposits that the bank must hold in the form of reserves that are not loaned out or invested in bonds. A. reserve ratio A _____________ are a form of financial instrument through which corporations and governments borrow money from financial investors and promise to repay with interest. A. Certificates of deposit B In an economy with _______________, money loses some buying power each year, but it remains money. A. inflation A The people in an economy have $10 million in money. There is only one bank that all the people deposit their money in and it holds 5% of the deposits as reserves. What is the money multiplier in this economy? A. 5 C The people in an economy have $10 million in money. There is only one bank that all the people deposit their money in and it holds 10% of the deposits as reserves. What is the money multiplier in this economy? A. 5 B The market where loans are made to borrowers is called the: A. secondary loan
market. D The market in which loans are bought and sold is called the: A. loan market. C Recommended textbook solutions Principles of Microeconomics7th EditionN. Gregory Mankiw 881 solutions Principles of Microeconomics8th EditionN. Gregory Mankiw 889 solutions Essential Foundations of Economics7th EditionHenry Cheeseman 232 solutions Microeconomics8th EditionDaniel Rubinfeld, Robert Pindyck 395 solutions Sets with similar termsEcon131 Final Exam Review Chapter 1432 terms abby_bissell5 ECON 131 HW 1420 terms rebekah_morales Economics Review: Chapter 2720 terms rachelandrson Chapter 27 Reading Quiz Eco 25216 terms marie_martin9 Sets found in the same folderEcon chapter 1545 terms ofekyakobi99 Econ Chapter 2446 terms cesiavasquez Econ Chapter 2542 terms Erin_Miller7 Chapter 17 - Government Budgets and Fiscal Policy49 terms Cory_Colwell Other sets by this creatoracctfin35 terms christine_schefcik Ch. 2011 terms christine_schefcik ACCT 327 Exam 2 Practice48 terms christine_schefcik Chapter 19: Share-Based Compensation and Earnings…20 terms christine_schefcik Verified questions
ECONOMICS Suppose people in your neighborhood want to have a community pool. Should the city government build the pool, or should it leave the matter up to the private sector? Explain your answer in economic terms. Verified answer ECONOMICS According to the law of increasing opportunity cost, each additional increment of one good requires the sacrifice of a. successively larger increments of the other good. b. equal increments of the other good. c. successively smaller increments of the other good. Verified answer
ECONOMICS Use a graphic organizer like the one below to explain how marginal product changes in each of the three stages of production. $$ \begin{matrix} \text{Stage of production } & \text{Marginal product}\\ \text{I}\\ \text{II}\\ \text{III}\\ \end{matrix} $$ Verified answer ECONOMICS In the Soviet Union, what was the opportunity cost of the emphasis on heavy industry? Verified answer Other Quizlet setsG&D #1122 terms Molly_Erdman5 Motor learning chapter 922 terms Rackesha_BeckfordPLUS ANSI Nutrition Exam 3174 terms tchap9898 Gangster chronicles21 terms quizlette17625313PLUS Related questions
QUESTION used primarily by small agricultural banks in the Midwest to help in managing the cyclical nature of farmer' loans and deposits 3 answers QUESTION Convenience of keeping some cash in your wallet is more valuable 2 answers QUESTION as inflation increases, real interest increases; g represents the slope of the reaction made by the Fed 2 answers QUESTION when people and business firms write checks to the treasury to pay taxes or purchase newly issued treasury securities 2 answers What is the money multiplier in this economy quizlet?The money multiplier is equal to 1 divided by the required reserve ratio. The Federal Reserve's use of open market operations, changes in the discount rate, and changes in the required reserve ratio to change the money supply (M1). The buying and selling of government securities by the Federal Reserve System.
What is the institution designed to control the quantity of money in the economy?Definition of Central Bank: An institution designed to oversee the banking system and regulate the quantity of money in the economy. 1. The Fed was created in 1914 after a series of bank failures.
Which of the following would be classified on the M1 category of the money supply?M1 includes demand deposits and checking accounts, which are the most commonly used exchange mediums through the use of debit cards and ATMs. Of all the components of the money supply, M1 is defined the most narrowly. M1 does not include financial assets, such as bonds.
Which of the following term is considered to be a narrow definition of the money supply?The Narrow Definition of Money: M1
M1 – (The most narrowly defined measure of money) A measure of the money supply consisting of currency and coins held by the non-banking public, checkable deposits, and travelers checks.
|
Which of the following is inextricably intertwined with the quantity of money in an economy?
direito autoral © 2024 cemle Inc.
