Description of this paper

devry ECON-312 week 6 quiz

Description

solution


Question

Question;(TCO 7) A $70 price tag on a sweater in a department store;window is an example of money functioning as a Student Answer;unit of account. standard of deferred payments. store of value. medium of exchange. Instructor Explanation: Chapter 31 Points Received: 1 of 1 Comments: Question 2. Question;(TCO 7) Currency held in the vault of First National Bank is Student Answer: counted as part;of M1. counted as part of M2, but not M1. only counted as part of M1 if it was deposited;into a checking account. not counted as part of the money supply. Instructor Explanation: Chapter 31 Points Received: 1 of 1 Comments: Question 3. Question;(TCO 7) Answer the question on the basis of the following;list of assets:1. Large-denominated ($100,000 and more) time deposits2. Noncheckable savings deposits3. Currency (coins and paper money) in circulation4. Small-denominated (less than $100,000) time deposits5. Stock certificates6. Checkable deposits7. Money market deposit accounts8. Money market mutual fund balances held by individuals9. Money market mutual fund balances held by businesses10. Currency held in bank vaultsRefer to the above list.;The M2 definition of money comprises Student Answer: items 2, 3, 4, 6;7, 8, and 10. items 3, 4, 5, and 6. items 2, 3, 4, 6, 7, and 8. all of the items listed. Instructor Explanation: Chapter 31 Points Received: 1 of 1 Comments: Question 4. Question;(TCO 7) Assume the Standard Internet Company negotiates a;loan for $5,000 from the Metro National Bank and receives a checkable deposit;for that amount in exchange for its promissory note (IOU). As a result of this transaction Student Answer;the supply of money is increased by $5,000. the supply of money declines by the amount of;the loan. a claim has been "demonetized." the Metro Bank acquires reserves from other;banks. Instructor Explanation: Chapter 32 Points Received: 1 of 1 Comments: Question 5. Question;(TCO 7) A bank temporarily short of required reserves may be;able to remedy this situation by Student Answer;borrowing funds in the federal funds market. granting new loans. shifting some of its vault cash to its reserve;account at the Federal Reserve. buying bonds from the public. Instructor Explanation: Chapter 32 Points Received: 1 of 1 Comments: Question 6. Question;(TCO 7) Money is destroyed when Student Answer: loans are made. checks written on one bank are deposited in;another bank. loans are repaid. the net worth of the banking system declines. Instructor Explanation: Chapter 32 Points Received: 1 of 1 Comments: Question 7. Question;(TCO 7) The asset demand for money Student Answer: is unrelated to;both the interest rate and the level of GDP. varies inversely with the rate of interest. varies inversely with the level of real GDP. varies directly with the level of nominal GDP. Instructor Explanation: Chapter 33 Points Received: 1 of 1 Comments: Question 8. Question;(TCO 7) If the quantity of money demanded exceeds the;quantity supplied Student Answer: the;supply-of-money curve will shift to the left. the demand-for-money curve will shift to the;right. the interest rate will rise. the interest rate will fall. Instructor Explanation: Chapter 33 Points Received: 1 of 1 Comments: Question 9. Question;(TCO 7) Which of the following is not a tool of monetary;policy? Student Answer: Open market;operations Changes in banking laws Changes in the amount of reserves available at;the term auction facility Changes in the reserve ratio Instructor Explanation: Chapter 33 Points Received: 1 of 1 Comments: Question 10. Question;(TCO 7) The purpose of an expansionary monetary policy is to;shift the Student Answer: aggregate-demand;curve leftward. aggregate-demand curve rightward. aggregate-supply curve leftward. investment-demand curve leftward. Instructor Explanation: Chapter 33 Points Received: 1 of 1 Comments: Question 11. Question;(TCO 7) Explain what is meant by fractional reserve banking.;Relate this to money creation and risk to the bank. Comments: Question 12. Question;(TCO 7) Which tool of monetary policy is most;important? Why is this more important;than the other tools?;="msonormal">

 

Paper#57921 | Written in 18-Jul-2015

Price : $22
SiteLock