Multiple Choice
Scenario 18.1: Curly, Moe, Larry, and Shemp are the four inhabitants of a small island. Moe has 200 gold coins, the only money on the island. He takes the coins to Curly, a goldsmith, for storage and Curly issues Moe a receipt for the 200 coins he has deposited with Curly. Larry comes to Curly to borrow 100 gold coins, signing a legally binding promise to repay the coins, and Curly issues Larry a receipt saying that Larry now has 100 gold coins on deposit. Upon finding out that Larry borrowed gold coins from Curly, Shemp comes to Curly to borrow 200 gold coins. Since Curly has 200 actual gold coins on deposit, he gets Shemp to sign a legally binding promise to repay the 200 coins and then issues Shemp a receipt saying that Shemp now has 200 gold coins on deposit.
-Refer to Scenario 18.1. When Curly made the loans to Larry and Shemp, the money supply
A) did not change.
B) decreased by 300 coins.
C) increased by 300 coins.
D) increased by 500 coins.
Correct Answer:
Verified
Correct Answer:
Verified
Q47: The two functions that are critical to
Q48: What are four functions of financial instruments?
Q49: Loans issued by banks for the purpose
Q50: Money's ability to store value depends on
Q51: Spreading wealth across multiple investments is called<br>A)
Q52: Why must the M2 measure of the
Q54: Mutual funds are diversified financial instruments that
Q55: If Veronica withdraws $1,500 from her checking
Q56: Which of the following is true of
Q57: Explain the differences between commodity money, representative