Devry ECO 312 Week 6 Weekly Assignment Latest

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Devry ECO 312 Week 6 Weekly Assignment Latest

(TCO 7) A $70 price tag on a sweater in a department store window is an example of money functioning as a

unit of account..

standard of deferred payments..

store of value..

medium of exchange..

Chapter 31

Points Received:

Comments:

Question 2.. Question :

(TCO 7) Currency held in the vault of First National Bank is

counted as part of M1..

counted as part of M2, but not M1..

only counted as part of M1 if it was deposited into a checking account..

not counted as part of the money supply..

Chapter 31

Points Received:

Comments:

Question 3.. Question :

(TCO 7) Answer the question on the basis of the following list of assets:

1. 1..Large-denominated ($100,000 and more) time deposits
2. 2..Noncheckable savings deposits
3. 3..Currency (coins and paper money) in circulation
4. 4..Small-denominated (less than $100,000) time deposits
5. 5..Stock certificates
6. 6..Checkable deposits
7. 7..Money market deposit accounts
8. 8..Money market mutual fund balances held by individuals
9. 9..Money market mutual fund balances held by businesses
10. 10..Currency held in bank vaults

Refer to the above list.. The M1 definition of money comprises item(s)

6 only..

3, 4, and 6..

3 and 6..

3, 6, and 10..

Chapter 31

Points Received:

Comments:

Question 4.. Question :

(TCO 7) Assume the Standard Internet Company negotiates a loan for $5,000 from the Metro National Bank and receives a checkable deposit for that amount in exchange for its promissory note (IOU).. As a result of this transaction

the supply of money is increased by $5,000..

the supply of money declines by the amount of the loan..

a claim has been “demonetized..”

the Metro Bank acquires reserves from other banks..

Chapter 32

Points Received:

Comments:

Question 5.. Question :

(TCO 7) Overnight loans from one bank to another for reserve purposes entail an interest rate called the

prime rate..

discount rate..

federal funds rate..

treasury bill rate..

Chapter 32

Points Received:

Comments:

Question 6.. Question :

(TCO 7) When a bank loan is repaid, the supply of money

is constant, but its composition will have changed..

is decreased..

is increased..

may either increase or decrease..

Chapter 32

Points Received:

Comments:

Question 7.. Question :

(TCO 7) The asset demand for money

is unrelated to both the interest rate and the level of GDP..

varies inversely with the rate of interest..

varies inversely with the level of real GDP..

varies directly with the level of nominal GDP..

Chapter 33

Points Received:

Comments:

Question 8.. Question :

(TCO 7) The equilibrium rate of interest in the market for money is determined by the intersection of the

supply of money curve and the asset demand for money curve..

supply of money curve and the transactions demand for money curve..

supply of money curve and the total demand for money curve..

investment demand curve and total demand for money curve..

Chapter 33

Points Received:

Comments:

Question 9.. Question :

(TCO 7) The discount rate is the interest

rate at which the central banks lend to the U..S.. Treasury..

rate at which the Federal Reserve Banks lend to commercial banks..

yield on long-term government bonds..

rate at which commercial banks lend to the public..

Chapter 33

Points Received:

Comments:

Question 10.. Question :

(TCO 7) A restrictive monetary policy is designed to shift the:

aggregate demand curve rightward..

aggregate demand curve leftward..

aggregate supply curve rightward..

aggregate supply curve leftward..

Chapter 33..

Points Received:

Comments:

Question 11.. Question :

(TCO 7) Explain what is meant by fractional reserve banking.. Relate this to money creation and risk to the bank..

Question 12.. Question :

(TCO 7) Describe what changes in the Fed’s major policy tools lead to [a] expansionary and [b] restrictive or contractionary monetary policies..

 

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Devry ECO 312 Week 6 Weekly Assignment Latest