AP Macro 22 and 23
the primary difference between M1 and M2 is that
M2 includes saving deposits and time deposits but M1 doesn't
a financial asset is
a claim that entitles the owner to future income from the seller
a car mechanic who wants a TV finding an owner of an electronics store who wants a car repaired is an example of....
a double coincidence
a share of stock is considered
a financial asset
which of the following qualify as an asset from the viewpoint of a household
a house
a loan is
a liability for the borrower and an asset for the lender
when you are using money to purchase a new MP3 player money is serving as.....
a medium of exchange
commodity backed money is
a medium of exchange with no intrinsic value
a financial intermediary that creates a diversified portfolio of stocks and then resells that portfolio to individual investors is known as
a mutual fund
a liability is
a redeeming that you pay income in the future
what is called "near-money"
a savings account
M2 includes
all of M1 Money markets Time deposit Saving deposit
an economy that lacks a medium of exchange is a
barter system
what is considered to be an IOU
bond
what asset is the MOST liquid
cash
from the standpoint of economic growth banks are important to
channel savings into investment
debit cards are
considered part of the money supply since they allow access to a part of the money supply
M1 includes:
currency checkable deposits travelers checks
physical capital is purchased through investment spending which in turn is mostly financed out of
domestic and foreign savings
money that the government has ordered can be accepted as money is
fiat money
the gov saves when it
has a budget surplus
what asset is the LEAST liquid
house
a difference between a closed and an open economy is that
in the latter, foreign savings complement domestic savings in financial investment spending
if the price of an asset is expected to rise in the future
it will be more in demand today
as an investor you may choose to purchase a bond or a share of stock. If you choose to purchase the bond, you are likely to receive a _____________ return in exchange for a _________ level of risk
lower, lower
when we use money to buy groceries money is playing the role of a.....
medium of exchange
financial assets
paper claims that provide the buyer of the claim future income from the seller of the claim
banks are financial intermediaries that
provide liquid assets to lenders and long term financing to borrowers
financial markets
provide liquidity
in a simple closed economy all investment spending must come from
saving
when you discover money in your coat that you placed there last winter you unexpectedly find that you were using money as a....
store of value
a budget surplus would exist when which of the following occurs?
taxes are heated than government spending
the term "liquid asset" means
that the asset is readily convertible to cash
transaction costs are
the expenses for negotiating and executing a deal
"tuition at state university this year is 8000" which function of money does this statement best illustrate
unit of account
when countries replace gold and silver coins with paper money exchangeable for certain amounts of precious metals, the monetary system evolved from
using commodity money to using commodity backed money
the value of all accumulated savings of a household is considered
wealth
is a 50$ bill liquid??
yes cash is the most liquid