Pre-Test Chapter 12 ed17-1

Pre-Test Chapter 12 ed17-1 - Pre-Test Chapter 12 ed17...

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Pre-Test Chapter 12 ed17 Multiple Choice Questions 1. A $20 bill is a: A. gold certificate. B. Treasury note. C. Treasury bill. D. Federal Reserve Note. 2. Which of the following is not part of the M 2 money supply? A. money market mutual fund balances B. money market deposit accounts C. currency D. large ($100,000 or more) time deposits 3. The Federal Deposit Insurance Corporation (FDIC) insures deposits up to $100,000 in: A. mutual fund companies and pension fund companies. B. thrifts and insurance companies. C. commercial banks and thrifts. D. securities firms and insurance companies. 4. Large time deposits of $100,000 or more are: A. a component of M 1. B. a component of M 2 but not of M 1. C. a component of MZM but not of M 2. D. not a component of M 1, M 2, or MZM . 5. The largest component of the money supply ( M 1) is: A. currency in bank vaults. B. currency in circulation. C. checkable deposits. D. stock certificates. 6. In the United States, the money supply ( M 1) is comprised of: A. coins, paper currency, and checkable deposits. B. currency, checkable deposits, and Series E bonds. C. coins, paper currency, checkable deposits, and credit balances with brokers. D. paper currency, coins, gold certificates, and time deposits.
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7. Checkable deposits are classified as money because: A. they can be readily used in purchasing goods and paying debts. B. banks hold currency equal to the value of their checkable deposits. C. they are ultimately the obligations of the Treasury. D. they earn interest income for the depositor. 8. Commercial banks and thrift institutions: A. differ because thrifts cannot make loans. B. differ because thrifts cannot offer checkable deposits. C. have become less similar in recent years. D. have become increasingly similar in recent years.
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This note was uploaded on 03/29/2010 for the course EDUCATION 111 taught by Professor Jones during the Spring '10 term at Bowling Green.

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Pre-Test Chapter 12 ed17-1 - Pre-Test Chapter 12 ed17...

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