1)If the transactions approach to measuring money is used, then the money supply consists of
a. transaction deposits only.
b. currency, checkable and debitable deposits, and traveler's checks.
c. currency and transaction deposits only.
d. currency only.
a. are deposits in a thrift institution or a commercial bank on which a check may be written.
b. include savings accounts.
c. are accounts that pay interest to the depositor.
d. are only deposits that you can check on through the Internet.
Hypothetical Economy: -Money Supply= $200 billion -Quantity of money demanded for transactions=$150 Billion -Quantity of money demanded as an asset=$10 billion at 12% interest -increaseing by $10 billion for each 2 percentage
Suppose in an economy the nominal money supply is $ 1000, the general price level is 4 and the real output is at its full employment level of $4000. a. what is the price level and velocity of money? b. By assuming constant
P5: The following information is available to you: travelers’ checks = $1 million; coin and paper currency = $30 million; repurchase agreements and Eurodollars = $15 million; demand deposits = $25 million; retail money market
1. Why is representative money more useful than commodity money? B. Representative money has value because the government says it does. C. Representative money exists in unlimited supply, so more people use it. D. Representative
The Money Multiplier (MM) is exemplified. Why do you think the FED evaluates the money multiplier when making decisions with regard to the money supply? What function does the money supply serve in our economy to influence certain