1. When you pay $299 for your purchase of an Amazon Echo360 you ordered, you are using money as a (n)
2. A.deferred payment
3. B.unit of account
4. C.store of value
5. D.medium of exchange

1 points

QUESTION 2

1. Since money is just like any other commodity, it has a price tag usually called the opportunity cost of holding money idle or the difference in earnings for alternative uses of money. Therefore, the price of money is called___________
2. A.inflation rate
3. B.GDP growth rate
4. C.interest rate
5. D.unemployment rate

1 points

QUESTION 3

1. The use of money to pay against the price tags on goods and services in stores is known as:
2. A.medium of exchange
3. B.Store of value
4. C.unit of transfer
5. D.unit of account

1 points

QUESTION 4

1. Use the following information of a typical balance sheet of a bank, say the Bostonian Bank, to answer questions from 4 through 8:
2. Bostonian Bank ___________ _____
3. AssetsLiabilities
4. Reserves:?Deposits:$800
5. Required Reserves?Net Worth:$400
6. ExcessReserves?
7. Loans:?Total:$1,200
8. Attached pdfversion of the same table to download, if needed.
9. Table1_FinalExam_ECON102.pdf
10. Q4:The required reserve ratio is 25%. If the Bostonian Bank is meeting its reserve requirement and has not kept excess reserves, its total reserves equal:
11. A.100
12. B.200
13. C.300
14. D.400

1 points

QUESTION 5

1. If the Bostonian Bank is meeting its reserve requirement and has no excess reserves, its loans equal (including the excess reserve)
2. A.1,200
3. B.1,000
4. C.600
5. D.500

1 points

QUESTION 6

1. With the same reserve requirement at 25%, the maximum possible lending creation from initial amount of excess reserve will be equal to__________
2. A.1,200
3. B.1,600
4. C.2,400
5. D.3,200

1 points

QUESTION 7

1. Given the same information on reserve requirement above, the maximum possible deposit creation from the bank's initial deposit will be equal to ______
2. A.4,000
3. B.5,000
4. C.4,800
5. D.3,200

1 points

QUESTION 8

1. Given the same information above, the money multiplier for the banking systems is:
2. A.4
3. B.8
4. C.6
5. D.5

1 points

QUESTION 9

1. The Federal Reserve expansionary monetary policy is to increase money supply and thus reduce interest rates to boost aggregate demand and output during recession. The appropriate action under open market operations for this policy will be to:
2. A.selling treasury securities to the public
3. B.increasing discount rate
4. C.increasing reserve requirement
5. D.buying (purchasing back) treasury securities from the treasury securities/bondsholders