The process by which investment banks assist issuers in selling securities in the capital markets is known as: A) underwriting B) securitization C) proprietary trading D) crowdfunding All of the following represent returns to savers EXCEPT: A) dividends on stocks B) fees on loans C) interest on deposits D) coupon payments on bonds A system of barter has substantial transactions costs because A) taxes under such a system are generally a large fraction of the value of output B) traders must spend considerable time searching for trading partners C) the uncertainties of trade result in high legal fees being incurred to draw up binding contracts D) the uncertainties of trade result in high insurance premiums When economists refer to the role of money as a unit of account, they mean that A) most accounting systems reflect that goods are purchased with currency B) most accounting systems reflect that goods are purchased with checks C) money gives traders a way of measuring value of items being exchanged D) money makes it possible for specialization to take place Which of the following is NOT included in M2? A) currency B) savings bonds C) money market deposit accounts D) overnight repurchase agreements According to the quantity theory of money, if the long-run economic growth rate is 2.5%, by how much should the Fed increase the money supply if it wants inflation to be 2%? A) 0.5% B) 1.25% C) 4.5% D) 5%