1)The amount of money you should hold depends negatively on the interest rate.

T/F Because :

2)A decrease in nominal income will lead to an increase in the interest rate.

T/ F Because:

3)If the Fed buys securities on the open market, it will decrease the money supply.

T/ F Because:

4)A decrease in the discount rate decreases the money supply.

T/ F Because:

5)When you use money to fill your car with gas every week, you are using money as a unit of account.

T/ F Because: