Which one of the following is NOT one of the functions of money?

Which one of the following is NOT one of the functions of money?

Question 1 options:

It must be able to store value.

It must be useful for trade.

It must be convertible to gold or some other precious metal.

It must be useful as a measurement of price and value.

Question 2 (3 points)

What is a problem with commodity money?

Question 2 options:

It is more likely to result in inflation than fiat money.

International trade is more difficult using commodity money.

Recessions tend to be more frequent when we use commodity money.

There are no problems with commodity money.

Question 3 (3 points)

The ease with which money can be used to buy goods and services is called

Question 3 options:

Fiat money.

Liquidity.

Return on the asset.

Spendability.

Question 4 (3 points)

If there is no difference in risk, then we expect that as assets become more liquid, the return on those assets will

Question 4 options:

Increase

Decrease

Remain the same.

Question 6 (3 points)

Why might a bank choose to hold excess reserves?

Question 6 options:

They have to by law.

To protect against risk.

Both A and B.

Banks will never hold excess reserves.

Question 7 (3 points)

A bank holds $500,000 in deposits. The reserve requirement is 0.3. How much must

this bank hold in required reserves?

Question 7 options:

$150,000

$250,000

$350,000

$1,700,000

Question 8 (3 points)

If the money multiplier is 3 and reserves are increased by $600,000, what will happen to the money supply?

Question 8 options:

Decrease by $200,000.

Increase by $200,000.

Increase by $600,000.

Increase by $1,800,000.

Question 9 (3 points)

The objective of the Federal Reserve is

Question 9 options:

Stable prices.

Full employment.

Both A and B.

None of the above.

Question 10 (3 points)

Why is the money supply curve a vertical line?

Question 10 options:

Because inflation occurs regularly.

Because of government price controls.

Because households will save the same amount regardless of interest rates.

Because only the central bank controls the supply of money.

Question 11 (3 points)

If households, on average, become more anxious about their finances, what will

happen to the demand for money?

Question 11 options:

Increase

Decrease

Remain the same







Calculate Your Essay Price
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more

Order your essay today and save 10% with the coupon code: best10