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1. The price of a new Nokia cell phone is $90. What is the function of money in

ID: 1236478 • Letter: 1

Question

1.

The price of a new Nokia cell phone is $90. What is the function of money in this context?
Answer
Question 2 answers

a medium of exchange

a means of payment

a unit of account

a measure of quality


1.
A bank is _______ when its _______ become(s) _______ .


solvent; net worth; negative

insolvent; reserves; negative

solvent; excess reserves; positive

insolvent; net worth; negative

1.
When the Federal Reserve conducts open market transactions, it

buys or sells corporate bonds in the bond market.

issues government bonds to raise funds for the government.

makes credit available to financial institutions in crises.

buys or sells previously issued government bonds.


1.
If the Fed raises its target for the federal fund rate, this indicates

the Fed is pursuing an expansionary monetary policy.

the Fed is pursuing a contractionary monetary policy.

the Fed is attempting to lower unemployment.

the Fed is concerned that the growth in aggregate demand will exceed potential GDP.

1
Which of the following is an example of the public's liabilities?

cash held by the public

their mortgage loans

checkable deposits

their holdings of U.S. government bonds

Explanation / Answer

1 a means of payment 2 insolvent; reserves; negative