Exam 9: The Nature and Creation of Money

Use the following to answer questions . Exhibit: Deposit Expansion Stages -(Exhibit: Deposit Expansion Stages) What is the value of $D in Stage 4 (round up to the nearest whole number)?

Use the following to answer questions. Exhibit: Money in the Economy -(Exhibit: Money in the Economy) In Year 1, if the supply of money measured by M2 was $650 billion, then the components of M2 not shown in the table must have totaled

Use the following to answer questions. Exhibit: Acme Bank: Partial Balance Sheet -(Exhibit: Acme Bank: Partial Balance Sheet) Assume Acme Bank initially has no excess reserves. If Guevara withdraws $6,000 from her checking account at Acme Bank, which of the following will occur?

Linda sells her Economics textbook to Ejere for $40. Ejere pays Linda with a check, which she deposits in her checking account in West Bank. Which statement below describes the check-clearing process?

If Naruz is in the car dealer's showroom looking at the sticker price on a 2013 car, that sticker price serves as a medium of exchange.

A primary function of a central bank is to

For a given level of reserves, a decrease in the reserve requirement ratio will

When her $1,000 time deposit expires, Suneeta decides not to renew the time deposit and opts to cash out. As a result of her transaction

The largest component of M1 is

Currency in the United States today is

The monetary aggregate, M1, increases when

Use the following to answer questions . Exhibit: Deposit Expansion Stages -(Exhibit: Deposit Expansion Stages) What is the value of the deposit multiplier?

Which of the following is a consequence of deposit insurance?

Which of the following is not a function of the Federal Reserve System?

Use the following to answer questions. Exhibit: Money in the Economy -(Exhibit: Money in the Economy) In Year 2, if savings deposits had been $250 billion instead of $200 billion, M2 would have been

Money is any item that is widely used and freely accepted as payment for goods and services.

Use the following to answer questions . Exhibit: Deposit Expansion Stages -(Exhibit: Deposit Expansion Stages) What is the required reserve ratio?

Use the following to answer questions . Exhibit: Components of the Money System -(Exhibit: Components of the Money System) The money supply measured by M1 is

Which of the following describes the medium-of-exchange function of money?

Which of the following describes the store of value function of money?