Quiz7 chapter7

Macroeconomics plus MyEconLab plus eBook 1-semester Student Access Kit (6th Edition)

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Quiz This activity contains 15 questions.  Which of the following statements best defines money? Income is money. Wealth is money. The set of assets that can be used to make payments is  money. Time is money. Which of the following is not included in M1? Demand deposits Other checkable deposits
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Money market accounts Currency Compared with M1, the assets in M2  are held more as a store of value. are more homogeneous. are more stable in value. are more liquid.
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An open market purchase by the Federal Reserve will increase the nominal interest rate. reduce the price level. increase the nominal money supply. increase the supply of corporate bonds on the open  market. The idea that investors compare the returns on bonds with differing times to maturity to see which  is expected to give them the highest return is the underlying notion of  portfolio theory.
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