Exam 2: The Role of Money in the Macroeconomy

The Federal Reserve satisfies the public's demand for currency by

The most prominent role for money is to serve as a

You just bought a new car. In this transaction, you used money as a

The central bank in most countries is responsible for

The velocity of money can be computed by

Which of the following is not a financial institution?

Velocity is the relationship between a change in the money supply and the change in

By altering people's liquidity, an increase in the money supply relative to the demand for liquidity should lead to

On a commercial bank's balance sheet, a checking account appears as

Which of the following is a possible cause of short-run inflation?

For a commercial bank, a new loan is

If a 5 percent increase in the money supply always leads to a 5 percent increase in nominal GDP, this indicates that

If an increase in the money supply causes people to buy more financial assets,

Which of the following lists of assets is in the correct order from most liquid to least liquid?

A bank's excess reserves are equal to

Noninterest-bearing checking accounts are known as

Bank __________ must be held in the form of vault cash and deposits with the central bank.

Hyperinflation is most likely when it is fueled by

In the United States, the reserve requirement on demand deposits is approximately

Which of the following best describes the ideal quantity of money?