1.Which of the followingis not a function of money?

a. Money provides intrinsic value to the user.

b. Money acts as a medium of exchange.

c. Money acts as a store of value.

d. Money provides a unit of account.

e. Money provides a standard of deferred payment.

2.Suppose that your grandmother sends you a check for $100 for your birthday,and you deposit the check into your savings account at your local bank.What is the effect on the money supply?

a. M1declines by $100and M2increases by $100.

b. Both M1and M2increase by $100.

c. Both M1and M2decline by $100.

d. M1declines by $100with no change in M2.

e. M2increases by $100with no change in M1.

3.The tools of monetary policy include tax cuts,increases in government spending, and balanced budget changes in government spending.

a. True

b. False

4.In the Keynesian Monetary Policy Transmission Mechanism,what is the effect of an increase in the money supply?

a. The money supply curve shifts to the right.

b. Interest rates decline.

c. Investment spending increases.

d. Aggregate demand shifts to the right.

e. All of the above.