Econ Final Ch. 9
For something to be called money it must:
A. Be accepted in exchange for all other goods and services.
M1 is defined as measure of the money supply that includes, mainly:
A. Checking accounts and currency in the hands of the people.
Which of the following statements about commercial banks is correct?
B. Commercial banks are privately owned and profit seeking.
A "double coincidence of wants" is:
B. Eliminated with the use of money.
Money gets its value from:
B. Its purchasing power
When you read the price tag on an article of clothing, money is functioning as a:
B. Standard of value.
Which of the following is NOT one of the desirable characteristics of a money unit?
C. Abundance
The most important body of the Federal Reserve System to carry out monetary policy is the:
C. Federal Open Market Committee
Of the following assets , which is the most liquid?
D. Checking accounts.
The interest rate charged by the Fed when a bank borrows reserves from the Fed is called the:
D. Federal funds rate
The Federal Reserve conducts monetary policy, which is best defined as:
D. Manipulating the size and growth of the money supply to improve economic performance.