6. The U.S. dollar is an example of: A) commodity-backed money. B) fiat money. C) commodity money. D) near-money. 7. Efua Apeatsewa transfers $500 from her savings account to her checking account: A) M1 decreases by $500, and M2 increases by $500. B) M1 increases by $500, and M2 decreases by $500. C) M1 and M2 don't change. D) M1 increases by $500, but M2 doesn't change. 8. The Federal Reserve reports on two main monetary aggregates: A) M2 and total debt B) M1 and currency held by banks C) M1 and M2 D) M1 and total stock purchases 9. Near-moneys are: A) paper money. B) fiat money. C) highly liquid financial assets. D) any financial assets. 10. Banks don't lend out all of the funds deposited because: A) it would not be profitable. B) they have to satisfy any depositor who wants to withdraw funds. C) they need to reduce their liquidity position. D) they need to make more money on interest-bearing deposits. 11. Banks can lend money because: A) they have so much to lend. B) they know not everyone wants their deposits back at the same time. C) there is a high demand for loans. D) they