macro: definition, measurement, and functions of money
The values of several types of assets in Hamsterville are given in the table below. What is the value of M2 in Hamsterville?
$935 million
Which of the following best explains why a $20 bill is money but a share of stock is not money?
The $20 bill can be used as a medium of exchange, but the share of stock cannot be used to purchase anything.
Felipe deposits $100in the bank. The bank stores $20 of his deposit in a vault and will loan out other $80. The $20 stored in the bank vault is part of which of the following?
The monetary base
The values of several types of assets in Hamsterville are given in the table below. What is the value of M1 in Hamsterville?
$620 million
Eliza buried money in the backyard to use in an emergency. Which of the three functions of money is described here?
Store of value
Which of the following is a function of money that is most immediately impacted by hyperinflation?
Store of value
Which of the following best defines money?
Any asset that is accepted as a way of paying for something
Which of the following are included in the monetary base (MB), but NOT in the money supply (M1)?
Currency in bank vaults on reserve
Which of the following best describes the monetary aggregate M1?
Currency in circulation + Demand deposits + travelers checks
What is included in the monetary base?
Money held in bank vaults and money held by the public
Which of the following best describes the difference between fiat money and commodity money?
commodity money has intrinsic value, but fiat money does not
