m 20
Which of the following is considered a role of money?
NOT currency in circulation
An example of commodity money would be crude oil.
T
Gold, silver, tobacco, and shells have all been used as money at one time in the United States.
T
Rules set by the Federal Reserve that determine the minimum reserve ratio for a bank are reserve requirements.
T
The size of the money multiplier is reduced when funds are held as cash rather than as checkable deposits.
T
Which of the following can a bank do?
all of the above
A bank's assets include bank deposits it holds
f
Money refers to the total value of financial assets in the economy.
f
The M2 is considered the narrowest definition of the overall money supply since it includes the most liquid assets.
f
The reserve ratio refers to the bank's reserves held over its required reserves.
f
