6.

(04.03 MC) The function of money as a store of value is explained by which of the following statements? (2 points)

A	Money can be stored as an asset because it has an intrinsic value.
B	Money can be saved and used in the future because of its purchasing power.
C	Money has a store of value because it offers protection against high rates of inflation.
D	Money allows comparison of the value of different commodities.
E	Money is used by individuals to acquire other goods and services.

8.

(04.04 MC) Use the given data table to answer the question below.

Asset (billion $)	Liability (billion $)
Required reserves 800	Primary deposits 8,000
Loans 7,200
Total 8,000	Total 8,000

What is the value of the money multiplier given the data above? (2 points)

A	8
B	9
C	10
D	11
E	12

9.

(04.05 MC) Assuming no other change, there is a decrease in the nominal interest rate. How will the money supply in the economy change as a result of this change in the nominal interest rate? (2 points)

A	There will be an increase in the money supply.
B	There will be a decrease in the money supply.
C	There will be an increase initially, but it will decrease afterwards.
D	There will be a decrease initially, but it will increase afterwards.
E	There will be no change in the money supply.

10.

(04.05 MC) Use the graph to answer the question that follows.

Nominal MS2 MS1 interest rate MD + Quantity of moneyNominal interest rate MS2 MS MS1 MD Quantity of moneyReal interest rate S2 S R2 S1 R R1 D Q2 Q Q1 Quantity of loanable funds