Question 1

A barter transaction between two individuals would involve

an exchange of checking account funds

money

double coincidence of wants

fiat currency

Question 2

Jeanette took $100 and exchanged it for a used video game console. What function did the $100 serve for Jeanette?

unit of account

store of value

unit of taxation

medium of exchange

Question 3

One valid criticism of the use of money as a store of value in modern economies is that

the money supply is too narrowly defined when considering M2

money is not perfect as a unit of account

storing money is distasteful

inflation will result in a loss of buying power

Question 4

One way that Brianna could use her M1 funds to purchase groceries would be to pay the grocery store using

the balance from her money market mutual fund

$50 in cash

a time deposit worth less than $100,000

her savings account

Question 5

A bank has deposits of $850 million. It holds reserves of $60 million and government bonds worth $110 million. If the bank sells its loans at market value of $640 million, what will the bank's total assets equal?

$1,590 million

$850 million

$790 million

$810 million

Question 6

The people in an economy have $120 million in money. There is only one bank that all the people deposit their money in and it holds 3.8% of the deposits as reserves. What is the money multiplier in this economy?

26.3

28.6

12.0

31.6

Question 7

A bank faces a reserve requirement of 4%. If that bank suddenly receives an increase to excess reserves of $50,000, the money supply will _____.

increase by $1,250,000

decrease by $200,000

decrease by $50,000

increase by $1,000,000

Question 8

A central bank that wants to decrease the quantity of money (i.e., money supply) in the economy can _____.

change the reserve requirement from 3 percent to 4 percent

lower the discount rate

purchase bonds in open market operations

change the reserve requirement from 2 percent to 1 percent

Question 9

A central bank that wants to increase the quantity of money (i.e., money supply) in the economy can _____.

increase the discount rate

increase the reserve requirement

sell bonds in open market operations

purchase bonds in open market operations

Question 10

Central bank policy requires Northern Bank to hold 12% of its deposits as reserves. Northern Bank policy prevents it from holding excess reserves. If the central bank purchases $12 million in bonds from Northern Bank, ceteris paribus, what will be the result?

Northern's loan assets increase by $12 million

Northern's net worth changes by $1.2 million

the money supply in the economy decreases

Northern's loan assets increase by $144 million

Question 11

Suppose in 2019 that nominal GDP was $1,909 billion and the money supply was $785 billion. Approximately what was the velocity of money in 2019?

2.04

0.45

0.41

2.43

Question 12

If nominal GDP is 900.00 and the money supply is 98.98, approximately what is velocity?

0.11

9.09

3.54

10.89

Question 13

Suppose the velocity is 3.1, the money supply is $1,000 billion, and the price level is 100. Approximately how much will real GDP increase if the central bank increases the money supply by $233 billion and the price level also increases to 109?

9.00

4.07

7.22

18.20

Question 14

Suppose that in 2018, 1.00 U.S. dollar (USD) bought 1.38 Canadian dollars (CAD) and in 2019 1.00 USD bought 1.32 CAD. Approximately how many USD could 1.00 CAD purchase in 2018 and 2019?

2018: 0.60 U.S. dollars; 2019: 0.50 U.S. dollars

2018: 0.69 U.S. dollars; 2019: 0.78 U.S. dollars

2018: 0.72 U.S. dollars; 2019: 0.76 U.S. dollars

2018: 2.85 U.S. dollars; 2019: 2.25 U.S. dollars

Question 15

If 70 Indian rupees purchased 1 U.S. dollar in 2019 and 89 Indian rupees purchased 1 U.S. dollar in 2020, then from 2019 to 2020 the U.S. dollar _____.

cannot be compared to the Indian rupee

appreciated relative to the Indian rupee

depreciated relative to the Indian rupee

remained at a constant value relative to the Indian rupee

Question 16

A depreciating U.S. dollar is _____ because it is worth _____ in terms of other currencies.

strengthening; less

weakening; more

weakening; less

strengthening; more

Question 17

If next year 1 Chinese yuan will buy you fewer U.S. dollars, then over the course of the year the Chinese yuan has _____.

remained at a constant value compared to the dollar

depreciated relative to the dollar

become a surplus relative to every global currency

appreciated relative to the dollar

Question 18

If 3.0 euros purchased 1 U.S. dollar in 2021 and 2.7 euro purchased 1 U.S. dollar in 2022, then from 2021 to 2022 the U.S. dollar _____.

depreciated relative to the euro

remained at a constant value relative to the euro

appreciated relative to the euro

cannot be compared to the euro

Question 19

From a macroeconomic point of view, increases in exports are a(n) _____ aggregate demand, and increases in imports are a(n) _____ aggregate demand.

addition to; subtraction from

addition to; addition to

subtraction from; addition to

subtraction from; subtraction from

Question 20

Ceteris paribus, a _____ can encourage exports of goods made in the United States.

stronger U.S. dollar

weaker U.S. dollar

unchanged U.S. dollar

weaker British pound

Hi please answers these questions