Ch 13 Money And Banking

10 Questions  I  By Ecofanics
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Finance Quizzes & Trivia
Ch 13 of McConnell and Brue.

  
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1.  Congress established the Fed as an independent agency to protect it from political pressure so that it can effectively control the money supply and maintain price stability.
A.
B.
2.  Currency and checkable deposits are money because they are acceptable to sellers in exchange for goods and services.
A.
B.
3.  An increase in the nominal GDP, ceteris paribus, will increase both the total demand for money and the equilibrium rate of interest in the economy.
A.
B.
4.  The currency component of M1 includes both coins and paper money.
A.
B.
5.  M2 is less than M3 by the amount of small time deposits in depository institutions.
A.
B.
6.  If money is to have a fairly stable value, its supply must be limited relative to the demand for it.
A.
B.
7.  A near money is a medium of exchange.
A.
B.
8.  The Federal Reserve Banks are the bankers' banks because they make loans to and accept deposits from depository institutions.
A.
B.
9.  When the price of a product is stated in terms of dollars and cents, then money is functioning as a unit of account.
A.
B.
10.  Both commercial banks and thrift institutions accept checkable deposits.
A.
B.
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