1. Moneymanldngffhe Quantity of Money Theory (Chapter 14) 1.1 What are the four anctions of money? Can something be considered money if it does not fulll all four functions? 1.2 Using the ve criteria in the book, explain how US. currency is suitable to use as a medium of exchange. 1.3 Suppose that you decide that you no longer want to hold currency, and deposit all of your currency holdings to your checking account. What is the immediate or initial impact of this transaction on M1 and M2? 1.4 Why is the real-world deposit multiplier smaller than ERR, where R is the required reserve ratio? 1.5 According to the quantity theory of money, if the money supply is growing at a rate of 5 percent, real GDP is growing at a rate of 2 percent, and velocity is constant, what will the ination rate be