1) A "primary market is a market A) for government securities. B) in which newly issued claims are sold to buyers by borrowers C) in which newly issued claims are sold by savers to borrowers. D) for debt by large or "primary" corporations. 2) The leading federal regulatory body for financial markets in the United States is the A) Federal Bureau of Investigation. B) Securities and Exchange Commission. C) Federal Financial Market Bureau. D) Investors Protection Agency. 3) Money as a medium of exchange refers only to A) currency. B) gold coins. C) anything that is generally accepted as payment for goods and services. D) checks at commercial banks. 4) Wealth is A) the sum of the value of assets. B) equal to income. C) a flow variable. D) the sum of the value of assets minus the sum of the value of liabilities 5) Money that has no value apart from its use as money A) is known as commodity money. B) is known as fiat money. C) will result in a return to a barter system. D) will result in rapid inflation. 6) As of May 2016, the amount of money as measured by M2 was about A) $880 billion. B) $3.2 trillion. C) $12.7 trillion. D) $16 trillion. 7) Which of the following makes up the largest share of M2? A) MI B) savings deposits C) small time deposits D) money market mutual fund shares 8) Suppose nominal GDP is $14 trillion and the money supply is $2 trillion. What is the velocity of money? A) 0.143 B) 7 C) 12 D) 28