1. Which of the following combination ofassets are considered to be money? (Poin
ID: 1239623 • Letter: 1
Question
1. Which of the following combination ofassets are considered to be money? (Points: 1)currency in circulation, checkable bank deposits, and creditcards
currency in circulation, checkable bank deposits, andtravelers' checks
currency in circulation and in bank vaults, checkable bankdeposits, and travelers' checks
currency incirculation and in bank vaults, checkable bank deposits, and creditcards
2. When countries replaced gold and silvercoins with paper money exchangeable for certain amounts of preciousmetals, the monetary system evolved from _______. (Points: 1)
using commodity money tousing fiat money
using commodity-backedmoney to using fiat money
using commodity money tousing commodity-backed money
using fiat money tousing commodity-backed money
3. Banks can lend money because ______.(Points: 1)
theyhave so much to lend
theyknow not everyone wants their deposits back at the sametime
thereis a high demand for loans
theyknow how much cash they have in their vault
4. Banks create money when they ______.(Points: 1)
makeloans
takedeposits
holdexcess reserves
paywithdrawals to depositors
5. To change the money supply, the Fed mostfrequently uses _______. (Points: 1)
changes in the requiredreserve ratios
changes in the discountrate
open-marketoperations
none of theabove
6. An increase in the aggregate price_______. (Points: 1)
increases the nominaldemand for money
decreases the nominaldemand for money
does not affect thenominal demand for money
shifts the nominaldemand for money to the left
7. The loanable funds model focuses on the______. (Points: 1)
demand formoney
supply of funds fromlenders
supply of funds fromborrowers and the demand by lenders
supply of funds fromlenders and the demand from borrowers
8. Expansionary monetary policy _______.(Points: 1)
increases the moneysupply, interest rates, consumption, and investment
decreases the moneysupply, interest rates, consumption, and investment
increases the moneysupply, decreases interest rates, and increases consumption andinvestment
decreases the moneysupply, increases interest rates, and decreases consumption andinvestment
9. In the long run, changes in the moneysupply _______. (Points: 1)
affect both theaggregate price level and aggregate output
affect only the pricelevel but they do not change aggregate output
affect aggregate outputbut not the aggregate price level
have no impact on eitherthe aggregate price level or aggregate output
10. All of the following factors shift thereal money demand curve to the right except a(n) _______. (Points:1)
decrease in the numberof stores accepting credit cards
increase in the pricelevel
breakdown ininformation technology that disables ATMs
increase in realaggregate spending
1. Which of the following combination ofassets are considered to be money? (Points: 1)
currency in circulation, checkable bank deposits, and creditcards
currency in circulation, checkable bank deposits, andtravelers' checks
currency in circulation and in bank vaults, checkable bankdeposits, and travelers' checks
currency incirculation and in bank vaults, checkable bank deposits, and creditcards
2. When countries replaced gold and silvercoins with paper money exchangeable for certain amounts of preciousmetals, the monetary system evolved from _______. (Points: 1)
using commodity money tousing fiat money
using commodity-backedmoney to using fiat money
using commodity money tousing commodity-backed money
using fiat money tousing commodity-backed money
3. Banks can lend money because ______.(Points: 1)
theyhave so much to lend
theyknow not everyone wants their deposits back at the sametime
thereis a high demand for loans
theyknow how much cash they have in their vault
4. Banks create money when they ______.(Points: 1)
makeloans
takedeposits
holdexcess reserves
paywithdrawals to depositors
5. To change the money supply, the Fed mostfrequently uses _______. (Points: 1)
changes in the requiredreserve ratios
changes in the discountrate
open-marketoperations
none of theabove
6. An increase in the aggregate price_______. (Points: 1)
increases the nominaldemand for money
decreases the nominaldemand for money
does not affect thenominal demand for money
shifts the nominaldemand for money to the left
7. The loanable funds model focuses on the______. (Points: 1)
demand formoney
supply of funds fromlenders
supply of funds fromborrowers and the demand by lenders
supply of funds fromlenders and the demand from borrowers
8. Expansionary monetary policy _______.(Points: 1)
increases the moneysupply, interest rates, consumption, and investment
decreases the moneysupply, interest rates, consumption, and investment
increases the moneysupply, decreases interest rates, and increases consumption andinvestment
decreases the moneysupply, increases interest rates, and decreases consumption andinvestment
9. In the long run, changes in the moneysupply _______. (Points: 1)
affect both theaggregate price level and aggregate output
affect only the pricelevel but they do not change aggregate output
affect aggregate outputbut not the aggregate price level
have no impact on eitherthe aggregate price level or aggregate output
10. All of the following factors shift thereal money demand curve to the right except a(n) _______. (Points:1)
decrease in the numberof stores accepting credit cards
increase in the pricelevel
breakdown ininformation technology that disables ATMs
increase in realaggregate spending
Explanation / Answer
2 C 3 B 4 A 5 C 6 A 7 D 8 C 9 B 10 B If you need any help let me know...Related Questions
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