PDF -Download Chapter 03 Test Bank Innovative Learning Solutions PDF - chapter 3 test bank.pdf
Wait Loading...


PDF :1 PDF :2 PDF :3 PDF :4 PDF :5 PDF :6 PDF :7 PDF :8 PDF :9 PDF :10


Like and share and download

chapter 3 test bank.pdf

Download Chapter 03 Test Bank Innovative Learning Solutions PDF

PDF Campbell Biology Chapter 3 Test Bank Savvy Studiosmail01 savvystudios br campbell biology chapter 3 test bank pdf PDF Campbell Biology 8th Edition Chapter 3 Test Bankcolombia ifj campbell biology 8th edition chapter 3 test bank pdf PDF Campbell Biology Chapter 3

Related PDF

Campbell Biology Chapter 3 Test Bank - Savvy Studios

[PDF] Campbell Biology Chapter 3 Test Bank Savvy Studiosmail01 savvystudios br campbell biology chapter 3 test bank pdf
PDF

Campbell Biology 8th Edition Chapter 3 Test Bank

[PDF] Campbell Biology 8th Edition Chapter 3 Test Bankcolombia ifj campbell biology 8th edition chapter 3 test bank pdf
PDF

Campbell Biology Chapter 3 Test Bank - Book Library

[PDF] Campbell Biology Chapter 3 Test Bank Book Librarystaging selsa nl campbell biology chapter 3 test bank pdf
PDF

Test Bank Chapter 3 Operating Systems Cfbats - Kronoscode

[PDF] Test Bank Chapter 3 Operating Systems Cfbats Kronoscode chap kronoscode test bank chapter 3 operating systems cfbats pdf
PDF

Chapter 3 Cost Volume Profit Analysis Test Bank

[PDF] Chapter 3 Cost Volume Profit Analysis Test Bankanalytics vankootenarchitectuur nl chapter 3 cost volume profit analysis test bank pdf
PDF

Principles Of Managerial Finance 13th Edition Test Bank Chapter 3

[PDF] Principles Of Managerial Finance 13th Edition Test Bank Chapter 3analytics vankootenarchitectuur nl principles of managerial finance 13th edition test bank chapter 3 pdf
PDF

Test Bank Chapter 3 Operating Systems

[PDF] Test Bank Chapter 3 Operating Systems dev2 mualphatheta test bank chapter 3 operating systems pdf
PDF

Test Bank Chapter 3 Operating Systems Cfbats

[PDF] Test Bank Chapter 3 Operating Systems Cfbats prueba apeseg pe test bank chapter 3 operating systems cfbats pdf
PDF

Test Bank Chapter 3 Operating Systems - APESEG

[PDF] Test Bank Chapter 3 Operating Systems APESEG prueba apeseg pe test bank chapter 3 operating systems pdf
PDF

Download Chapter 03 Test Bank Innovative Learning Solutions PDF

chapter 03 the concept of elasticity and consumer and … 3 5 17 if the price of a good decreases Download Chapter 1 What Is Personality Test Bank For Pdf
PDF

Chapter 3 (Thesis)

Chapter III RESEARCH METHODOLOGY - Shodhganga

PDF Chapter 3 Research methodology repository up ac za dspace bitstream handle 03chapter3 pdf PDF Writing Chapter 3 Chapter 3 Methodology Abraham S Fischler education nova edu writing chpt3 quantitative research methods

  1. chapter 3 methodology quantitative example
  2. example of methodology in research proposal
  3. chapter 3 research methodology sample qualitative
  4. chapter 3 thesis sample qualitative
  5. chapter 3 methodology sample descriptive
  6. methodology chapter structure
  7. chapter 3 methodology about social media
  8. examples of research instruments for data collection

Chapter 3 Wood JEPPESEN - Airframe

Basic Aircraft Science Basic Aircraft Science Lab

ww1 jeppesen pdf s Airframe Answer Key pdf ANSWERS AIRCRAFT STRUCTURAL ASSEMBLY AND RIGGING SECTION 1A 42 1 43 truss 2 stressed skin, monocoque 3 semi monocoque 4 45 semi monocoque joespiper Site Aviation AirframeRepair pdf

Chapter 3 Wood

Chapter 3 Aerodynamics of Flight

fpl fs fed us documnts fplgtr fplgtr113 ch03 pdf 3–1 Chapter 3 Physical Properties and Moisture Relations of Wood William Simpson and Anton TenWolde Contents Appearance 3–1 Grain and Texture 3–1 Plainsawn and Quartersawn 3–2 Decorative Features 3–2 Moisture Content 3–5 Green Wood and Fiber Saturation Point 3–5 Equilibrium

Chapter 3.pdf

The Outsiders

3–1) California Coastal Sage, Chaparral, and Oak Woodlands; Sonoran Desert enforcement activity, and energy development and transmission Chapter 3  Chapter 3 Methodology Introduction The project's main purpose was concerned with the investigation of the use of transaction logs and other methods

  1. Chapter 3
  2. Chapter 3 Methodology
  3. Writing Chapter 3 Chapter 3
  4. Chapter 3 Data Analysis 3.1 Track Data
  5. Chapter 3 Research methodology
  6. CDBG Guide to National Objectives and Eligibile Activities Chapter 3
  7. Chapter 3 Foundations II
  8. Components of Chapter 3
  9. Chapter 3 video lesson
  10. of Chapter 3

Chapter-3

Title 305 - NEBRASKA REAL ESTATE COMMISSION Chapter 3

Label Review Manual Chapter 3 General Labeling Requirements Table of Contents Table of Contents What's changed in this version? Chapter 3 Verifying Potential Errors and Taking Corrective Actions Table of Contents (Rev 853, 01 04 19) Transmittals for

  1. Chapter 3
  2. PHAK Chapter 3
  3. Dissertation Chapter 3 Sample
  4. PAM I Chapter 3 revision
  5. CHAPTER 3 RULES OF ORIGIN AND ORIGIN PROCEDURES
  6. NEBRASKA REAL ESTATE COMMISSION Chapter 3
  7. Chapter 3—Eligibility 301 Employee
  8. Volume 1 Chapter 3
  9. Chapter 3 Security Deposit
  10. McMillan Chapter 3

Chapter-3

Medicare Claims Processing Manual

benefits va gov WARMS docs admin26 handbook Chapter 3 The VA Loan and Guaranty 3 3 1 Basic Elements of a VA Guaranteed Loan, Continued a General rules (continued) Subject Explanation Section Interest Rate and Points Interest rate and points are negotiated between the lender and

Chapter 3

Chapter 3 An Intervention Model of HIV/AIDS Protection for Sex

PDF Chapter 3 Methodology SIGIR sigir files museum pub 30 15 pdf PDF Dissertation Chapter 3 Sample Ashford Writing Center writingcenter ashford edu Dissertation 20Chapter 203 20Annotated 20Sample 0 pdf PDF Impacts

  1. miller and levine biology chapter 3 pdf
  2. strayer ways of the world chapter 3 pdf
  3. ways of the world chapter 3
  4. chapter 3 the biosphere true or false answers
  5. chapter 3 what is ecology answer key
  6. chapter 3 basic skills and equipment answers
  7. ways of the world chapter 3 pdf
  8. ways of the world 3rd edition pdf chapter 3

Chapter 3

Medicare Claims Processing Manual

benefits va gov WARMS docs admin26 handbook Chapter 3 The VA Loan and Guaranty 3 3 1 Basic Elements of a VA Guaranteed Loan, Continued a General rules (continued) Subject Explanation Section Interest Rate and Points Interest rate and points are negotiated between the lender and

CHAPTER 4 Aircraft Welding

Chapter 5 Aircraft Welding Sweethaven02 Com

PDF Chapter 4 Aircraft Metal Structural Repair sweethaven02 Aviation MaintHandbook ama Ch04 pdf PDF Section 1 IDENTIFICATION OF METALS raanzraanz nz techproject FAA 20AC43 Chapter 2004 pdf PDF AC 65 15A Airframe & Powerplant Mechanics

  1. aircraft sheet metal repair pdf
  2. aircraft inspection techniques
  3. aircraft sheet metal repairs
  4. aircraft fuselage structure
  5. sheet metal aircraft construction
  6. aircraft construction pdf
  7. aircraft riveting procedures
  8. jeppesen aircraft sheet metal pdf
Home back Next

Description

Economics of Money,

Banking,

Markets,

________ is anything that is generally accepted in payment for goods and services or in the repayment of debt

A) wealth B) income C) money D) credit Answer: C Ques Status: Previous Edition 2) Money is A) anything that is generally accepted in payment for goods and services or in the repayment of debt

B) a flow of earnings per unit of time

C) the total collection of pieces of property that are a store of value

D) always based on a precious metal like gold or silver

Answer: A Ques Status: Previous Edition 3) Currency includes A) paper money and coins

B) paper money,

C) paper money and checks

D) paper money,

Answer: A Ques Status: Previous Edition AACSB: Analytic skills 4) Even economists have no single,

precise definition of money because A) money supply statistics are a state secret

B) the Federal Reserve does not employ or report different measures of the money supply

C) the "moneyness" or liquidity of an asset is a matter of degree

D) economists find disagreement interesting and refuse to agree for ideological reasons

Answer: C Ques Status: Previous Edition AACSB: Reflective thinking skills

B) income

C) money

D) credit

Answer: A Ques Status: Previous Edition 6) A person's house is part of her A) money

B) income

C) liabilities

D) wealth

Answer: D'Ques Status: Previous Edition AACSB: Analytic skills 7) ________ is used to make purchases while ________ is the total collection of pieces of property that serve to store value

A) Money

wealth Answer: D'Ques Status: Previous Edition AACSB: Reflective thinking skills 8) ________ is a flow of earnings per unit of time

A) Income B) Money C) Wealth D) Currency Answer: A Ques Status: Previous Edition 9) An individual's annual salary is her A) money

B) income

C) wealth

D) liabilities

Answer: B Ques Status: Previous Edition AACSB: Analytic skills

we mean that A) the quantity of money is measured at a given point in time

B) we must attach a time period to the measure

C) it is sold in the equity market

D) money never loses purchasing power

Answer: A Ques Status: Previous Edition AACSB: Reflective thinking skills 11) The difference between money and income is that A) money is a flow and income is a stock

B) money is a stock and income is a flow

C) there is no difference—money and income are both stocks

D) there is no difference—money and income are both flows

Answer: B Ques Status: Previous Edition AACSB: Reflective thinking skills 12) Which of the following is a true statement

? A) Money and income are flow variables

B) Money is a flow variable

C) Income is a flow variable

D) Money and income are stock variables

Answer: C Ques Status: Previous Edition AACSB: Reflective thinking skills 13) Which of the following statements uses the economists' definition of money

? A) I plan to earn a lot of money over the summer

B) Betsy is rich—she has a lot of money

C) I hope that I have enough money to buy my lunch today

D) The job with New Company gave me the opportunity to earn more money

Answer: C Ques Status: Previous Edition AACSB: Analytic skills

the one that distinguishes money from other assets is its function as a A) store of value

B) unit of account

C) standard of deferred payment

D) medium of exchange

Answer: D'Ques Status: Previous Edition AACSB: Reflective thinking skills 2) If peanuts serve as a medium of exchange,

then peanuts are A) bank deposits

B) reserves

C) money

D) loanable funds

Answer: C Ques Status: Previous Edition AACSB: Reflective thinking skills 3) ________ are the time and resources spent trying to exchange goods and services

A) Bargaining costs

B) Transaction costs

C) Contracting costs

D) Barter costs

Answer: B Ques Status: Previous Edition 4) Compared to an economy that uses a medium of exchange,

in a barter economy A) transaction costs are higher

B) transaction costs are lower

C) liquidity costs are higher

D) liquidity costs are lower

Answer: A Ques Status: Previous Edition AACSB: Reflective thinking skills

disadvantages of the barter system include: A) the requirement of a double coincidence of wants

B) lowering the cost of exchanging goods over time

C) lowering the cost of exchange to those who would specialize

D) encouraging specialization and the division of labor

Answer: A Ques Status: Previous Edition AACSB: Reflective thinking skills 6) The conversion of a barter economy to one that uses money A) increases efficiency by reducing the need to exchange goods and services

B) increases efficiency by reducing the need to specialize

C) increases efficiency by reducing transactions costs

D) does not increase economic efficiency

Answer: C Ques Status: Previous Edition AACSB: Reflective thinking skills 7) Which of the following statements best explains how the use of money in an economy increases economic efficiency

? A) Money increases economic efficiency because it is costless to produce

B) Money increases economic efficiency because it discourages specialization

C) Money increases economic efficiency because it decreases transactions costs

D) Money cannot have an effect on economic efficiency

Answer: C Ques Status: Previous Edition AACSB: Reflective thinking skills 8) When economists say that money promotes ________,

they mean that money encourages specialization and the division of labor

A) bargaining B) contracting C) efficiency D) greed Answer: C Ques Status: Previous Edition AACSB: Reflective thinking skills 9) Money ________ transaction costs,

allowing people to specialize in what they do best

A) reduces B) increases C) enhances D) eliminates Answer: A Ques Status: Previous Edition 5 Copyright © 2013 Pearson Education,

making it easy to ascertain its value

B) difficult to make change

C) deteriorate quickly so that its supply does not become too large

D) hard to carry around

Answer: A Ques Status: Previous Edition AACSB: Reflective thinking skills 11) All of the following are necessary criteria for a commodity to function as money except A) it must deteriorate quickly

B) it must be divisible

C) it must be easy to carry

D) it must be widely accepted

Answer: A Ques Status: Previous Edition AACSB: Analytic skills 12) Whatever a society uses as money,

the distinguishing characteristic is that it must A) be completely inflation proof

B) be generally acceptable as payment for goods and services or in the repayment of debt

C) contain gold

D) be produced by the government

Answer: B Ques Status: Previous Edition AACSB: Reflective thinking skills 13) All but the most primitive societies use money as a medium of exchange,

implying that A) the use of money is economically efficient

B) barter exchange is economically efficient

C) barter exchange cannot work outside the family

D) inflation is not a concern

Answer: A Ques Status: Previous Edition AACSB: Reflective thinking skills 14) Kevin purchasing concert tickets with his debit card is an example of the ________ function of money

A) medium of exchange B) unit of account C) store of value D) specialization Answer: A Ques Status: Previous Edition AACSB: Analytic skills

money is said to function as a A) unit of account

B) medium of exchange

C) store of value

D) payments-system ruler

Answer: A Ques Status: Previous Edition AACSB: Analytic skills 16) A problem with barter exchange when there are many goods is that in a barter system A) transactions costs are minimized

B) there exists a multiple number of prices for each good

C) there is only one store of value

D) exchange of services is impossible

Answer: B Ques Status: Previous Edition AACSB: Reflective thinking skills 17) In a barter economy the number of prices in an economy with N goods is A) [N(N

- 1)]/2

B) N(N/2)

D) N(N/2)

Answer: A Ques Status: Previous Edition AACSB: Analytic skills 18) If there are five goods in a barter economy,

one needs to know ten prices in order to exchange one good for another

there are ten goods in a barter economy,

then one needs to know ________ prices in order to exchange one good for another

A) 20 B) 25 C) 30 D) 45 Answer: D'Ques Status: Previous Edition AACSB: Analytic skills

then one needs to know ________ prices in order to exchange one good for another

A) 8 B) 6 C) 5 D) 4 Answer: B Ques Status: Previous Edition AACSB: Analytic skills 20) Because it is a unit of account,

money A) increases transaction costs

B) reduces the number of prices that need to be calculated

C) does not earn interest

D) discourages specialization

Answer: B Ques Status: Previous Edition AACSB: Reflective thinking skills 21) Dennis notices that jackets are on sale for $99

In this case money is functioning as a A) medium of exchange

B) unit of account

C) store of value

D) payments-system ruler

Answer: B Ques Status: Previous Edition AACSB: Analytic skills 22) As a store of value,

money A) does not earn interest

B) cannot be a durable asset

C) must be currency

D) is a way of saving for future purchases

Answer: D'Ques Status: Previous Edition AACSB: Analytic skills 23) Patrick places his pocket change into his savings bank on his desk each evening

By his actions,

Patrick indicates that he believes that money is a A) medium of exchange

B) unit of account

C) store of value

D) unit of specialization

Answer: C Ques Status: Previous Edition AACSB: Analytic skills 8 Copyright © 2013 Pearson Education,

A) Efficiency B) Liquidity C) Deflation D) Specialization Answer: B Ques Status: Previous Edition 25) Increasing transactions costs of selling an asset make the asset A) more valuable

B) more liquid

C) less liquid

D) more moneylike

Answer: C Ques Status: Previous Edition AACSB: Reflective thinking skills 26) Since it does not have to be converted into anything else to make purchases,

________ is the most liquid asset

A) money B) stock C) artwork D) gold Answer: A Ques Status: Previous Edition AACSB: Reflective thinking skills 27) Of the following assets,

B) traveler's checks

C) checking deposits

D) a house

Answer: D'Ques Status: Previous Edition AACSB: Analytic skills 28) Ranking assets from most liquid to least liquid,

the correct order is A) savings bonds

B) currency

C) currency

D) house

Answer: B Ques Status: Previous Edition AACSB: Analytic skills

This can be explained by the fact that money is A) extremely liquid

B) a unique good for which there are no substitutes

C) the only thing accepted in economic exchange

D) backed by gold

Answer: A Ques Status: Previous Edition AACSB: Reflective thinking skills 30) If the price level doubles,

B) more than doubles,

C) rises but does not double,

D) falls by 50 percent

Answer: D'Ques Status: Previous Edition AACSB: Analytic skills 31) A fall in the level of prices A) does not affect the value of money

B) has an uncertain effect on the value of money

C) increases the value of money

D) reduces the value of money

Answer: C Ques Status: Previous Edition AACSB: Analytic skills 32) A hyperinflation is A) a period of extreme inflation generally greater than 50% per month

B) a period of anxiety caused by rising prices

C) an increase in output caused by higher prices

D) impossible today because of tighter regulations

Answer: A Ques Status: Previous Edition 33) During hyperinflations,

A) the value of money rises rapidly

B) money no longer functions as a good store of value and people may resort to barter transactions on a much larger scale

C) middle-class savers benefit as prices rise

D) money's value remains fixed to the price level

if prices double so does the value of money

Answer: B Ques Status: Previous Edition AACSB: Reflective thinking skills 10 Copyright © 2013 Pearson Education,

one can conclude that the German economy suffered from A) deflation

B) disinflation

C) hyperinflation

D) superdeflation

Answer: C Ques Status: Previous Edition AACSB: Dynamics of the global economy 35) If merchants in the country Zed choose to close their doors,

preferring to be stuck with rotting merchandise rather than worthless currency,

then one can conclude that Zed is experiencing a A) superdeflation

B) hyperdeflation

C) disinflation

D) hyperinflation

Answer: D'Ques Status: Previous Edition AACSB: Reflective thinking skills 36) Explain how cigarettes could be called "money" in prisoner-of-war camps of World War II

Answer: The cigarettes performed the three functions of money

They served as the medium of exchange because individuals did exchange items for cigarettes

They served as a unit of account because prices were quoted in terms of the number of cigarettes required for the exchange

They served as a store of value because an individual would be willing to save their cigarettes even if they did not smoke because they believed that they could exchange the cigarettes for something that they did want at some time in the future

Ques Status: Previous Edition AACSB: Reflective thinking skills 3

B) used by union officials to set salary caps

C) an illegal method of rewarding contracts

D) used by your employer to determine salary increases

Answer: A Ques Status: Previous Edition AACSB: Reflective thinking skills

A) commodity money is likely to precede the use of paper currency

B) transaction costs increase

C) the number of prices that need to be calculated increase rather dramatically

D) specialization decreases

Answer: A Ques Status: Previous Edition AACSB: Reflective thinking skills 3) ________ money could be used for some other purpose other than as a medium of exchange,

gold coins could be melted down and turned into gold jewelry

A) Commodity B) Fiat C) Paper D) Electronic Answer: A Ques Status: New AACSB: Analytic skills 4) A disadvantage of ________made from precious metals is that it is very heavy and hard to transport from one place to another

A) commodity money B) fiat money C) electronic money D) paper money Answer: A Ques Status: Revised AACSB: Reflective thinking skills 5) Paper currency that has been declared legal tender but is not convertible into coins or precious metals is called ________ money

A) commodity B) fiat C) electronic D) funny Answer: B Ques Status: Previous Edition AACSB: Analytic skills 6) When paper currency is decreed by governments as legal tender,

legally it must be A) paper currency backed by gold

B) a precious metal such as gold or silver

C) accepted as payment for debts

D) convertible into an electronic payment

Answer: C Ques Status: Previous Edition AACSB: Reflective thinking skills 12 Copyright © 2013 Pearson Education,

then to checks can best be understood as a consequence of the fact that A) paper is more costly to produce than precious metals

B) precious metals were not generally acceptable

C) precious metals were difficult to carry and transport

D) paper money is less accepted than checks

Answer: C Ques Status: Previous Edition AACSB: Reflective thinking skills 8) Compared to checks,

paper currency and coins have the major drawbacks that they A) are easily stolen

B) are hard to counterfeit

C) are not the most liquid assets

D) must be backed by gold

Answer: A Ques Status: Previous Edition AACSB: Reflective thinking skills 9) Although ________ currency is lighter than coins made of metals,

a disadvantage arising from modern technology is the ease of ________

A) paper

counterfeiting Answer: D'Ques Status: New AACSB: Use of information technology 10) Introduction of checks into the payments system reduced the costs of exchanging goods and services

Another advantage of checks is that A) they provide convenient receipts for purchases

B) they can never be stolen

C) they are more widely accepted than currency

D) the funds from a deposited check are available for use immediately

Answer: A Ques Status: Previous Edition AACSB: Reflective thinking skills

then to checks can best be understood as a consequence of A) government regulations designed to improve the efficiency of the payments system

B) government regulations designed to promote the safety of the payments system

C) innovations that reduced the costs of exchanging goods and services

D) competition among firms to make it easier for customers to purchase their products

Answer: C Ques Status: Previous Edition AACSB: Reflective thinking skills 12) Compared to an electronic payments system,

a payments system based on checks has the major drawback that A) checks are less costly to process

B) checks take longer to process,

meaning that it may take several days before the depositor can get her cash

C) fraud may be more difficult to commit when paper receipts are eliminated

D) legal liability is more clearly defined

Answer: B Ques Status: Previous Edition AACSB: Reflective thinking skills 13) Which of the following sequences accurately describes the evolution of the payments system

coins made of precious metals,

electronic funds transfers B) Barter,

coins made of precious metals,

electronic funds transfers C) Barter,

coins made of precious metals,

electronic funds transfers D) Barter,

electronic funds transfers Answer: A Ques Status: Previous Edition AACSB: Analytic skills 14) An important characteristic of the modern payments system has been the rapidly increasing use of A) checks and decreasing use of currency

B) electronic fund transfers

C) commodity monies

D) fiat money

Answer: B Ques Status: Revised AACSB: Use of information technology

? A) a debit card B) a credit card C) a stored-value card D) a smart card Answer: B Ques Status: Previous Edition AACSB: Use of information technology 16) A smart card is the equivalent of A) cash

B) savings bonds

C) savings deposits

D) certificates of deposit

Answer: A Ques Status: Previous Edition AACSB: Use of information technology 17) An electronic payments system has not completely replaced the paper payments system because of all of the following reasons except A) expensive equipment is necessary to set up the system

B) security concerns

C) privacy concerns

D) transportation costs

Answer: D'Ques Status: Previous Edition AACSB: Use of information technology 18) In explaining the evolution of money A) government regulation is the most important factor

B) commodity money,

because it is valued more highly,

tends to drive out paper money

C) new forms of money evolve to lower transaction costs

D) paper money is always backed by gold and therefore more desirable than checks

Answer: C Ques Status: Previous Edition AACSB: Reflective thinking skills 19) What factors have slowed down the movement to a system where all payments are made electronically

? Answer: The equipment necessary to set up the system is expensive,

and privacy concerns are issues that need to be addressed before an electronic payments system will be widely accepted

Ques Status: Previous Edition AACSB: Reflective thinking skills

since the Fed now knows what to consider money

B) more difficult,

since the Fed now knows what to consider money

C) easier,

since the Fed no longer knows what to consider money

D) more difficult,

since the Fed no longer knows what to consider money

Answer: D'Ques Status: Previous Edition AACSB: Reflective thinking skills 2) Defining money becomes ________ difficult as the pace of financial innovation ________

A) less

stops Answer: B Ques Status: Previous Edition AACSB: Use of information technology 3) Monetary aggregates are A) measures of the money supply reported by the Federal Reserve

B) measures of the wealth of individuals

C) never redefined since "money" never changes

D) reported by the Treasury Department annually

Answer: A Ques Status: Previous Edition AACSB: Analytic skills 4) ________ is the narrowest monetary aggregate that the Fed reports

A) M0 B) M1 C) M2 D) M3 Answer: B Ques Status: Previous Edition AACSB: Analytic skills 5) The currency component includes paper money and coins held in A) bank vaults

B) ATMs

C) the hands of the nonbank public

D) the central bank

Answer: C Ques Status: Previous Edition AACSB: Analytic skills 16 Copyright © 2013 Pearson Education,

B) money market mutual fund shares

C) automatic transfer from savings accounts

D) money market deposit accounts

Answer: C Ques Status: New AACSB: Analytic skills 7) The components of the U

M1 money supply are demand and checkable deposits plus A) currency

B) currency plus savings deposits

C) currency plus travelers checks

D) currency plus travelers checks plus money market deposits

Answer: C Ques Status: Previous Edition AACSB: Analytic skills 8) The M1 measure of money includes A) small denomination time deposits

B) traveler's checks

C) money market deposit accounts

D) money market mutual fund shares

Answer: B Ques Status: Previous Edition AACSB: Analytic skills 9) Which of the following is not included in the measure of M1

? A) NOW accounts B) Demand deposits C) Currency D) Savings deposits Answer: D'Ques Status: Previous Edition AACSB: Analytic skills 10) Which of the following is not included in the M1 measure of money but is included in the M2 measure of money

? A) Currency B) Traveler's checks C) Demand deposits D) Small-denomination time deposits Answer: D'Ques Status: Previous Edition AACSB: Analytic skills 17 Copyright © 2013 Pearson Education,

? A) Currency B) Savings deposits C) Small-denomination time deposits D) Money market deposit accounts Answer: A Ques Status: Previous Edition AACSB: Analytic skills 12) Which of the following is not included in the monetary aggregate M2

? A) Currency B) Savings bonds C) Traveler's checks D) Checking deposits Answer: B Ques Status: Previous Edition AACSB: Analytic skills 13) Which of the following is included in M2 but not in M1

? A) NOW accounts B) Demand deposits C) Currency D) Money market mutual fund shares (retail) Answer: D'Ques Status: Previous Edition AACSB: Analytic skills 14) Of the following,

the largest is A) money market deposit accounts

B) demand deposits

Answer: D'Ques Status: Previous Edition AACSB: Analytic skills 15) If an individual redeems a U

savings bond for currency A) M1 stays the same and M2 decreases

B) M1 increases and M2 increases

C) M1 increases and M2 stays the same

D) M1 stays the same and M2 stays the same

Answer: B Ques Status: Previous Edition AACSB: Analytic skills

A) M1 increases and M2 stays the same

B) M1 stays the same and M2 increases

C) M1 stays the same and M2 stays the same

D) M1 increases and M2 decreases

Answer: A Ques Status: Previous Edition AACSB: Analytic skills 17) If an individual moves money from a demand deposit account to a money market deposit account,

A) M1 decreases and M2 stays the same

B) M1 stays the same and M2 increases

C) M1 stays the same and M2 stays the same

D) M1 increases and M2 decreases

Answer: A Ques Status: Previous Edition AACSB: Analytic skills 18) If an individual moves money from a savings deposit account to a money market deposit account,

A) M1 decreases and M2 stays the same

B) M1 stays the same and M2 increases

C) M1 stays the same and M2 stays the same

D) M1 increases and M2 decreases

Answer: C Ques Status: Previous Edition AACSB: Analytic skills 19) If an individual moves money from currency to a demand deposit account,

A) M1 decreases and M2 stays the same

B) M1 stays the same and M2 increases

C) M1 stays the same and M2 stays the same

D) M1 increases and M2 stays the same

Answer: C Ques Status: Previous Edition AACSB: Analytic skills 20) If an individual moves money from a money market deposit account to currency,

A) M1 increases and M2 stays the same

B) M1 stays the same and M2 increases

C) M1 stays the same and M2 stays the same

D) M1 increases and M2 decreases

Answer: A Ques Status: Previous Edition AACSB: Analytic skills 19 Copyright © 2013 Pearson Education,

A) M1 decreases and M2 stays the same

B) M1 stays the same and M2 increases

C) M1 stays the same and M2 stays the same

D) M1 decreases and M2 decreases

Answer: D'Ques Status: New AACSB: Analytic skills 22) Small-denomination time deposits refer to certificates of deposit with a denomination of less than A) $1,000

B) $10,000

C) $100,000

D) $1,000,000

Answer: C Ques Status: Previous Edition AACSB: Analytic skills 23) The M2 monetary aggregate contains everything that is in M1 plus other assets that are highly ________ (can be turned into cash quickly at very little cost)

A) liquid B) stable C) consistent D) efficient Answer: A Ques Status: New AACSB: Analytic skills 24) Which of the following statements accurately describes the two measures of the money supply

? A) The two measures do not move together,

so they cannot be used interchangeably by policymakers

B) The two measures' movements closely parallel each other,

even on a month-to-month basis

C) Short-run movements in the money supply are extremely reliable

D) M2 is the narrowest measure the Fed reports

Answer: A Ques Status: Previous Edition AACSB: Reflective thinking skills 25) The decade during which the growth rates of monetary aggregates diverged the most is A) the 1960s

B) the 1970s

C) the 1980s

D) the 1990s

Answer: D'Ques Status: Previous Edition 20 Copyright © 2013 Pearson Education,

dollars held outside of the United States

? Answer: Concern about high inflation eroding the value of their own currency causes many people in foreign countries to hold U

dollars as a hedge against inflation risk

Ques Status: Previous Edition AACSB: Reflective thinking skills