Question 6 1 pts If nominal GDP is $500 billion and, on average, each dollar is

Question

Question 6 1 pts If nominal GDP is $500 billion and, on average, each dollar is spent five times per year, then the amount of money demanded for transactions purposes will be: O $100 billion. $500 billion. $1,200 billion $2,500 billion Question 7 1 pts Loans of the Federal Reserve Banks to commercial bank reserves: O a liability of the Federal Reserve Banks and commercial banks. O an asset of Federal Reserve Banks and commercial banks. O a liability of the Federal Reserve Banks and an asset for commercial banks. O an asset of the Federal Reserve Banks and a liablity for commercial banks

Explanation / Answer

(Question 6) Option (1)

Amount of money demanded = Nominal GDP / Number of times a dollar is spent per year = $500 billion / 5

= $100 billion

(Question 7) Option (4)

For any bank, a loan given out is an asset and a loan taken is a liability.

Related Questions

Navigate

• Browse (All)
• Browse Q
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.