1. Bank notes were financial assets of state banks.

A. T

B. F

2.Which of the following levels of spending in the economy is not affected by Monetary policy?

A.new housing investment.

B. consumer durable goods purchases.

C. inventory investment by business.

D. federal government budget outlays.

E. all of the above are affected by monetary policy.

3.The four phases of a business cycle are

A.recession, peak, expansion, contraction.

B. expansion, peak, recession, contraction.

C .contraction, expansion, peak, recession.

D. peak, contraction, recession, expansion.

E. peak, expansion, recession, contraction.