14. In an expanding economy: A. NDP exceeds GDP B. Gross private domestic invest
ID: 1126928 • Letter: 1
Question
14. In an expanding economy: A. NDP exceeds GDP B. Gross private domestic investment exceeds depreciation C. I exceeds P D. Money GNP but not necessarily real GNP is rising 15. A $25 price tag of a CD in a department store is an example of money funct A. A medium of exchange B. A store of value C. A standard of deferred payment D. A standard of value 16. The principle type of money used in the United States is A. United States Notes B. National Bank notes C. Commercial Bank Note D. Federal Reserve Notes 17. The basic policy making body in the American banking system is A. The council of Economic Advisors B. The Federal Advisory Council C. The Open Market Committee D. Demand DepositsExplanation / Answer
14) In an expanding economy:
Solution: Gross private domestic investment exceeds depreciation
Solution: When gross investment exceeds depreciation then net investment is positive and economy experiences expanding production capacity
15) A $25 price tag of a CD in a departmental store is an example of money function as
Solution: a unit of account
Explanation: The primary function of money is a unit of account which refers to the agreed measure for stating the prices of goods and services
16) The principle type of money in the United States is
Solution: Federal reserve notes
Explanation: The principle type of money in the United States is Federal reserve notes
17) The basic policy making body in the American banking system is Federal advisory council
Solution: Federal advisory council
Explanation: The basic policy making body in the American banking system is the Board of Governors of the Federal Reserve; and four advisory councils advise and assist the Board on matters of public policy
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