rhw6ans - RHW6 JUST SENT THE FOLLOWING TO FLATWORLD: USING...

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RHW6 JUST SENT THE FOLLOWING TO FLATWORLD: USING RITTENBERG AND THE TESTBANK UPLOADED TO SAKAI - QUESTIONS HAVE MANY, MANY ERRORS - I.E. INDICATING AND INCORRECT ANSWER IS CORRECT. SO BAD THAT I WILL STRONGLY CONSIDER NOT USING THE BOOK AGAIN. 6 8 22 28 32 35 36 37 40 42 50 52 57 58 60 61 63 66 70 Question6 - Single Correct 1.0 Point The monetary aggregate, M1, increases when A an individual cashes a check written by a business. B an individual purchases clothes with a debit card. C an individual switches funds from a savings account to a checking account. D an individual buys groceries with a credit card. SAVINGS ARE IN M2 SO M2 GOES DOWN AND CHECKING (AND M1) GOES UP Question8 - Single Correct 1.0 Point A bank's reserves are A the minimum value of assets it must have. B the amount of gold it is required to have as reserves against loans. C the value of federal securities it is required to have as reserves against loans. D deposits that banks have accepted from customers but have not loaned out. RESERVES INCLUDE REQUIRED (BY LAW) AND EXCESS **ERROR* SHOULD BE A & D Question22 - Single Correct 1.0 Point Which of the following is an advantage of using money as a medium of exchange? A It simplifies purchases because all prices are specified in money values. B There is no interest charged on using money for purchases. C It is easy to mass produce money. D It avoids having to rely on barter, the exchange of one good or service for another. Question28 - Single Correct 1.0 Point
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Which of the following is a store of value and a common medium of exchange? A corporate bonds B stocks C checking account balances D Debit cards DEFINITION OF M1 – CURR + CHECKABLE DEPOSITS Question32 - Single Correct 1.0 Point When the Fed purchases government bonds it _____ reserves and ____ the money supply. A decreases; increases B increases; decreases C decreases; decreases D increases; increases BUY A BOND, DEALER DEPOSITS CHECK, BANK GETS ‘CREDIT’ TO ITS RESERVE ACCT WITH FED AND INCREASES DEALERS CHECKING ACCT BALANCE (I.E. MONEY)
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This note was uploaded on 02/05/2012 for the course 331 464 taught by Professor Hsu during the Spring '09 term at Rutgers.

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rhw6ans - RHW6 JUST SENT THE FOLLOWING TO FLATWORLD: USING...

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