Chapter 10 true false

Principles of Macroeconomics: A Study Guide

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Chapter 10: The Money Supply and The Federal Reserve System True or False
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1. Strictly defined, money can be considered either income or wealth. TRUE FALSE 2. Money is the best asset available for transporting purchasing power from one period to another. TRUE FALSE 3. Fiat money is intrinsically worthless. TRUE FALSE
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4. Instead of increasing taxes, the U.S. government today pays for goods and services by printing money. TRUE FALSE 5. Unlike the supply of wheat or the supply of automobiles, the money supply, as
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Unformatted text preview: measured by M1, is a stock (not a flow) variable. TRUE FALSE 6. The legal distinctions between financial intermediaries have broadened since the 1970s. TRUE FALSE 7. A bank's most important assets are its deposits. TRUE FALSE 8. Actual reserves equal excess reserves plus required reserves. TRUE FALSE 9. An increase in bank reserves leads to a greater increase in the money supply. TRUE FALSE 10. Most of the money supply is held in the form of currency. TRUE FALSE...
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