3 One hundred dollars on deposit in a checking account represents the use of money as a: 6 A) medicm of exchange. (B) store of value. 9 ( C) unit of account. (D) coincident exchange. 12 Question 2 (1 point) Listen 15 Which of the following items does not provide a store of value? 18 ( A) Currency. ( B) Bonds. C) Credit cards. ( D) Gold.Listen Which of the following is not an example of money used as a unit of account? ( A) A British pound is worth $3.00. ( B) Auto repairs were $3,000 last year. C) Business travel totaled 12,000 miles. D) Gasoline sells for $1.20 per gallon and oil is $5.00 per quart. Question 4 (1 point) Listen Which one of the following statements is true? A) Money must be relatively "scarce" if it is to have value. B) Money must be divisible and portable. ( C) M1 is the narrowest definition of money. (D) All of the above.The characteristics that money should have include: A) portability, durability, and flexibility. ( B) duralwity, flexibility and stability. ( C) durability, portability, and non-homogeneity. ( D) scarcity, portability, and divisibility. Question 6 (1 point) Listen M1 refers to: A) the most narrowly defined money supply definition. B) currency held by the public plus checking account balances. C) the smallest of the money-supply definitions. ( D) all of the above.Which of the following is not considered part of M2? A) Small time deposits of less than $100,000. ( B) Money market mutual fund shares. ( C) Large time deposits of more than $100,000. D) Savings deposits. Question 8 (1 point) Listen Suppose you transfer $1,000 from your checking account to your savings account. How does this action affect the M1 and M2 money supplies? A) M1 and M2 are both unchanged. ( B) M1 falls by $1,000, and M2 rises by $1,00. C) M1 is unchanged, and M2 rises by $1,000. ( D) M1 falls by $1,000, and M2 is unchanged.Decisions regarding purchases and sales of government securities by the Fed are made by the: ( A) Federal Funds Committee. B) Discount Committee. C) Federal Open Market Committee. ( D) FDIC. Question 10 (1 point) Listen With respect to controlling the money supply, the law requires the Fed to take orders from: ( A) the President. (B) the Speaker of the House. (C) the Secretary of the Treasury. (D) no one-the Fed is an independent agency.Which of the following groups oversees and administers the Federal Reserve System? A) The House of Representatives. (B) The President's Council of Economic Advisors. C) The U.S. Treasury Department. ( D) None of the above, the Fed is an independent agency. Question 12 (1 point) Listen Which of the following is not part of the Federal Reserve System? A) Council of Economic Advisors. O B) Board of Governors. C) Federal Open Market Committee. ( D) 12 Federal Reserve District Banks.The Fed's principal decision-making body, which directs buying and selling U. S. government securities, is known as the: A) Federal Deposit Insurance Corporation. ( B) District Board of Governors. ( C) Federal Open Market Committee. (D) Reserve Requirement Regulation Conference. Question 14 (1 point) Listen The Federal Deposit Insurance Corporation (FDIC): O A) insures all demand deposit accounts up to $10 million in banks choosing FDIC protection. O B) was created as a government-owned corporation following the creation of the World Bank and the International Monetary Fund after World War II. ( C) rarely evaluates bank performance to detect weaknesses in operation. O D) was created to reduce the risk of banking by compensating depositors and(D) was created to reduce the risk of banking by compensating depositors and 3 keeping bank failures from spreading. Question 15 (1 point) 6 () Listen Mary worked part-time for her mother's business without pay. Larry was absent 9 from work because he had the flu. Who is counted as employed by the BLS? A) Mary but not Larry 12 O B) Larry but not Mary 15 O C) both Marry and Larry 18 O D) neither Mary nor Larry O E) none of the above.Which of the following is a valid statement? A) Excess reserves = total reserves minus required reserves. B) Required reserves = the minimum reserves required by the Fed. C) Required-reserve ratio = required reserves as a percentage to total deposits. ( D) All of the above. Question 17 (1 point) Listen A bank faces a required reserve ratio of 5 percent. If the bank has $200 million of checkable deposits and $15 million of total reserves, then how large are the bank's excess reserves? ( A) $0. ( B) $5 million. ( C) $10 million. (D) $15 million. tvA bank has $100 million of checkable deposits, $6 million of required reserves, and $2 million of excess reserves. What is the required reserve ratio? A) 2 percent. ( B) 3 percent. ( c) 6 percent. ( D) 12 percent. Question 19 (1 point) Listen An individual bank can lend out at most its: A) actual reserves. ( B) excess reserves. C) checkable deposits. ( D) fractional reserves.bank currently has checkable deposits of $100,000, reserves of $30,000, and 70,000. If the required reserve ratio is lowered from 20 percent to 15 percent, S can increase its loans by: remaining X Assume a simplified banking system subject to a 10 percent required-reserve ratio. If there is an initial increase in excess reserves of $90,000 and all possible loans are made, the money supply: ( A) increases $90,000. B) increases $900,000. ( C) increases $990,000. ( D) decreases $90,000. Question 23 (1 point) ) Listen In a simplified banking system subject to a 25 percent required-reserve, a $1,000 open-market purchase by the Fed would cause the money supply to: ( A) increase by $1,000. ( B) decrease by $1,000. ( C) decrease by $4,000. D) increase by $4,000.Listen Which of the following policy actions by the Fed would cause the money supply to increase? A) An open-market sale of government securities. ( B) An increase in required-reserve ratios. ( C) An increase in the discount rate. (D) An open-market purchase of government securities. Question 25 (1 point) Listen If the Fed wishes to increase the money supply then it should: A) increase the required reserve ratio. ( B) increase the discount rate. ( C) buy government securities on the open market. (D) do any of the above. O zoom