STDQs_12__

STDQs_12__ - 60. As of April 2002, the largest single...

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60. As of April 2002, the largest single component of M 2 consists of a. checkable deposits at banks. b. cash, coins, and other currency. c. savings and time deposits. d. gold and silver in commodity accounts. ANS: C DIF: Moderate TOP: How the Quantity of Money is Measured 61. A "near money" is an asset that can be a. indistinguishable from commodity money. b. spent easily. c. a close substitute for money. d. only issued by a bank. ANS: C DIF: Moderate TOP: How the Quantity of Money is Measured 62. Liquidity can be defined as the a. cash value of money. b. value of money adjusted for inflation. c. value of fiat money when used for spending. d. ease with which an asset can be converted to a spendable asset. ANS: D DIF: Moderate TOP: How the Quantity of Money is Measured 63. The distinction between M 1 and M 2 is based on a. portability-the ease with which an asset can be moved. b. divisibility-the ease with which an asset can be used to make smaller payments. c. liquidity-the ease with which an asset can be converted into cash. d. storability-how long an asset will retain its value. ANS: C DIF: Moderate TOP: How the Quantity of Money is Measured 64. Are funds available on a credit card included in a definition of the money supply? a. Yes, because these funds can be used to pay for goods and services. b. Yes, because these funds are included in M 2 . c. No, because these funds are hard to measure total credit card spending. d. No, because these funds are not a store of value. ANS: D DIF: Difficult TOP: How the Quantity of Money is Measured 65. Are "smart cards" or E-cash cards part of the money supply? a. Yes, because they can be given away to make a payment. b.
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STDQs_12__ - 60. As of April 2002, the largest single...

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