Question 1

Item  Billions of Dollars  Checkable Deposits $2,000 Small Time Deposits 400 Currency Held by the Public 80 Savings Deposits, Including Money-Market Deposit Accounts 1,300 Money-Market Mutual Funds Held by Individuals 600 Money-Market Mutual Funds Held by Businesses 700\begin{array} { | l | c | } \hline  { 	ext { Item } } & 	ext { Billions of Dollars } \\hline 	ext { Checkable Deposits } & \$ 2,000 \\hline 	ext { Small Time Deposits } & 400 \\hline 	ext { Currency Held by the Public } & 80 \\hline 	ext { Savings Deposits, Including Money-Market Deposit Accounts } & 1,300 \\hline 	ext { Money-Market Mutual Funds Held by Individuals } & 600 \\hline 	ext { Money-Market Mutual Funds Held by Businesses } & 700 \\hline\end{array} Item  Checkable Deposits  Small Time Deposits  Currency Held by the Public  Savings Deposits, Including Money-Market Deposit Accounts  Money-Market Mutual Funds Held by Individuals  Money-Market Mutual Funds Held by Businesses ​ Billions of Dollars $2,000400801,300600700​​  The accompanying table contains hypothetical data for an economy. The size of the M2 money supply is

Accepted Answer

A)   $4,380 billion.
B)   $1,300 billion.
C)   $3,780 billion.
D)   $3,080 billion. E) A) and C)
F) All of the above

Question 2

Members of the Federal Reserve Board of Governors are

Accepted Answer

A)   appointed by Congress to staggered 14-year terms.
B)   selected by the Federal Open Market Committee for 4-year terms.
C)   appointed by the president to staggered 14-year terms.
D)   selected by each of the Federal Reserve banks for 4-year terms.E) B) and C)
F) A) and B)

Question 3

Items 1. Money market mutual funds held by individuals
2)  Savings deposits, including money market deposit accounts
3)  Money market mutual funds held by businesses
4)  Currency held by the public
5)  Small time deposits
6)  Checkable deposits
Refer to the accompanying list. The M2 money supply is composed of items

Accepted Answer

A)   1, 2, 3, 4, 5, and 6.
B)   1, 2, 4, 5, and 6.
C)   1, 2, 4, and 6.
D)   2, 4, 5, and 6.E) A) and B)
F) C) and D)

Question 4

When a banker records how many dollars each of his borrowers owes the bank, money is serving as

Accepted Answer

A)   a store of value.
B)   a unit of account.
C)   a medium of exchange.
D)   legal tender.E) None of the above
F) A) and D)

Question 5

When a consumer wants to compare the price of one product with another, money is primarily functioning as a

Accepted Answer

A)   store of value.
B)   unit of account.
C)   checkable deposit.
D)   medium of exchange.E) B) and C)
F) All of the above

Exam 14: Money, Banking, and Financial Institutions

Correct Answer
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When a consumer wants to compare the price of one product with another, money is primarily functioning as a

Correct Answer
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Correct Answer
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When a banker records how many dollars each of his borrowers owes the bank, money is serving as

Correct Answer
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Members of the Federal Reserve Board of Governors are

Correct Answer
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Exam 14: Money, Banking, and Financial Institutions

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When a consumer wants to compare the price of one product with another, money is primarily functioning as a

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Correct AnswerverifiedShow Answer

When a banker records how many dollars each of his borrowers owes the bank, money is serving as

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Members of the Federal Reserve Board of Governors are

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
verified

Correct Answer
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Correct Answer
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