macro sheflin hwk 5

macro sheflin hwk 5 - Review Assessment: hw 5 Name: Status:...

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Review Assessment: hw 5 Name: hw 5 Status: Completed Score: 106 out of 118 point(s) Time Elapsed: 48 minutes and 12 seconds out of 1 hours allowed. Instructions: Question 1 Multiple Choice 2 of 2 point(s) The “yardstick” people use to post prices and record debts is called Your Answer: a unit of account. Correct Answer: a unit of account. Question 2 Multiple Choice 0 of 2 point(s) Paper money Your Answer: has a high intrinsic value. Correct Answer: is valuable because it is generally accepted in trade. Question 3 Multiple Choice 2 of 2 point(s) Demand deposits are a type of Your Answer: checking account. Correct Answer: checking account. Question 4 Multiple Choice 2 of 2 point(s) If the public decides to hold less currency and more deposits in banks, bank reserves Your Answer: increase and the money supply eventually increases. Correct Answer: increase and the money supply eventually increases. Question 5 Multiple Choice 2 of 2 point(s) Which of the following is included in M2 but not in M1? Your Answer: savings deposits Correct Answer: savings deposits Question 6 Multiple Choice 2 of 2 point(s) Use the balance sheet for the following questions. Table 29-2 First Bank of Mason City Assets Liabilities Required Reserves $20.00 Deposits $100.00 Loans $80.00
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. If $1,000 is deposited into the First Bank of Mason City, and the bank takes no other actions, it’s Your Answer: assets will increase by $1,000. Correct Answer: assets will increase by $1,000. Question 7 Multiple Choice 2 of 2 point(s) When a bank loans out $1,000, the money supply Your Answer: increases. Correct Answer: increases. Question 8 Multiple Choice 2 of 2 point(s) In a 100-percent-reserve banking system, Your Answer: banks hold as many reserves as they hold deposits. Correct Answer: banks hold as many reserves as they hold deposits. Question 9 Multiple Choice 2 of 2 point(s) Who is credited with making the first coins? Your Answer: Lydians Correct Answer: Lydians Question 10 Multiple Choice 2 of 2 point(s) The Fed can directly protect a bank during a bank run by Your Answer: lending reserves to the bank. Correct Answer: lending reserves to the bank. Question 11 Multiple Choice 2 of 2 point(s) In recent years the Federal Open Market Committee has focused on a target for Your Answer: the federal funds rate. Correct Answer: the federal funds rate. Question 12 Multiple Choice 0 of 2 point(s) The legal tender requirement means that Your Answer: All of the above are correct. Correct Answer: people are more likely to accept the dollar as a medium of exchange. Question 13 Multiple Choice 2 of 2 point(s) Use the balance sheet for the following questions. Table 29-2
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macro sheflin hwk 5 - Review Assessment: hw 5 Name: Status:...

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