Ch 13 Money And Banking

10 Questions  I  By Ecofanics on April 11, 2009
Ch 13 of McConnell and Brue.

  

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1.  There is a transactions demand for money because households and business firms use money as a store of value.
A.
B.
2.  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.
3.  Both commercial banks and thrift institutions accept checkable deposits.
A.
B.
4.  At times, the Fed lends money to banks and thrifts, charging them an interest rate called the bank and thrift rate.
A.
B.
5.  The Federal Open Market Committee is responsible for keeping the stock market open and regulated.
A.
B.
6.  Members of the Board of Governors of the Federal Reserve System are appointed by the president and confirmed by the senate.
A.
B.
7.  Economists and public officials are in general agreement on how to define the money supply in the U.S.
A.
B.
8.  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.
9.  The money supply designated M1 is the sum of currency and noncheckable deposits.
A.
B.
10.  Currency and checkable deposits are money because they are acceptable to sellers in exchange for goods and services.
A.
B.
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