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-employed would 38) When the manager of a department store attaches price tags to his/her products, he/she is using 38) A que venom money as a A) unit of account. B) store of value. C) unit of transfer. D) medium of exchange. berli ni sessionl ns (U Momaysvog gilles ( 39) Things that a firm owns that are worth something are classified as 39) A) net worth. B) assets. C) liabilities. D) deposits. 40) The central bank of the United States is known as the wigque venom sn! rashe ton (A 40) A) Federal Savings and Loan Insurance Corporation. vlgave Yanam or'l sagatom (e B) Federal Reserve System. qque terom gill no joshis issonu as avsit to C) Federal Deposit Insurance Corporation. D) Department of the Treasury. 41) Commercial banks create money through A) making loans. B) facilitating borrowing from the Federal Reserve to the public. C) reducing risk in the economy. D) printing treasury notes. 42) The multiple by which total deposits can increase for every dollar increase in reserves is the 42) A) deposit insurance limit. B) required reserve ratio. C) bank's line of credit. D) money multiplier. 43) Which of the following activities is one of the responsibilities of the Federal Reserve? 43) A) loaning money to other countries that are friendly to the United States B) auditing the various agencies and departments of the federal government C) issuing new bonds to finance the federal budget deficit D) assisting banks that are in a difficult financial position 44) Which of the following causes the quantity of money demanded to increase? 44) A) a decrease in the interest rate B) a decrease in the price level C) a decrease in nominal income D) an increase in nominal income 45) Which of the following instruments is not used by the Federal Reserve to change the money 45) supply? A) the federal tax code 3) open market operations C) the discount rate D) the required reserve ratio 46) The Fed uses open market operations to 46) A) determine the discount rate. B) buy or sell government securities. C) determine the federal funds rate. D) determine the required reserve ratio. 47) The discount rate is 47) A) the interest rate commercial banks charge their most creditworthy customers. B) the interest rate commercial banks charge their new customers. C) the interest rate the Fed charges commercial banks for borrowing funds. ) the interest rate commercial banks charge each other for borrowing funds.48) Which of the following represents an action by the Federal Reserve that is designed to increase the 48) money supply? A) a decrease in federal tax rates B) an increase in the discount rate C) selling government securities in the open market D) a decrease in the required reserve ratio how 49) A decrease in the discount rate will most likely 49) A) not effect the money supply. B) increase the money supply. C) have an unclear affect on the money supply. D) decrease the money supply. Yness and To inamieged (a 50) If the Fed buys government securities, then there is 50) A) an increase in the supply of money. B) a decrease in the supply of money. C) an increase in the required reserve ratio. D) a decrease in the discount rate. ned philsfiliost ISA of abood wen polveet (0 poillang Isionsan shafthib seniors ostenskind undjalaed ( emooni Isalmon misshotepb s to 5tsi Jououeth and andmanish (A29) Innovation is the use of to improve productivity and enhance economic growth. 29) A) natural resources B) knowledge C) physical capital D) an increased labor force 30) Increased human capital is a source of 30) A) an increased labor force rate. B) increased productivity. C) decreased output. D) decreased wages. was Ysa ton asob 31) Costs of production are determined Sayode ert to l18 0 31) A) only by the input prices that are available. B) only by the technologies that are available. C) by the technologies that are available and by input prices. D) by the technologies that are available and by the demand for the output. 32) Factors of production such as labor and capital self ni senayonline 32) A) are substitutable. B) can be neither complements nor substitutes. C) are complementary. D) can be complements and also substitutes.