CHAPTER 27 - CHAPTER 27 Right answers 21 In December 2001...

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CHAPTER 27 Right answers: 21/ In December 2001, currency held by individuals and businesses currency held by individuals and businesses was $581 billion; traveler's checks in circulation traveler's checks in circulation were $8 billion; checkable deposits owned by individuals and businesses checkable deposits owned by individuals and businesses were $593 billion; small time deposits small time deposits were $975 billion; money market funds and other deposits money market funds and other deposits were $ 982; and M2 was $5,452 billion. Calculate M1 in December 2001. Calculate savings deposits savings deposits in December 2001. In December 2001, M1 was $ 1182 billion. Savings deposits in December 2001 were $ 2313 billion. 22/ Choose the statement about money that is incorrect. A. Money acts as a unit of account comma which is an agreed measure for stating the prices of goods and services. B. Inflation brings a rising value of money. Inflation brings a rising value of money. Your answer is correct. C. Notes and coins inside banks are not counted as money. D. Money acts as a store of value in the sense that it can be held and exchanged later for goods and services.
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