Which of the following statements is true?

a. The money supply is largest when banks hold excess reserves

b. The money supply is largest when more currency is held by the public

c. The money supply is largest when banks hold excess reserves but the public holds less currency

d. The money supply is largest when banks hold no excess reserves and the public holds very little

Suppose the current rate of inflation is 3%, real gdp is $18,500, and potential gdp is $18,700. According to the Taylor Rule, what is the appropriate Federal Funds Rate target?

a. 5%

b. 4%

c. 2%

d. 8%

Which of the following is the primary tool of monetary policy?

a. Regulating banks

b. Setting the discount rate

c. Setting the required reserve rate

d. Open Market Operations

You own shares of Weeble stock which you purchased for $90 per share a few months ago. On an average year, Weeble stock has a return of 9%. Overnight, you learn that Weeble has invented a vaccine for the Corona Virus Covid-19 and analysts have upgraded their price estimate of Weeble stock to $150 per share. At what price will Weeble sell when the market opens in the morning?

a. 89.82

b. $90.00

c. $137.61

d. $145.73

If Darius, Ashley, and Emily each want the same stock and their required returns are 6%, 7%, and 10% respectively, who will end up with the stock if it pays a dividend of $10/share and the dividend is expected to grow by 3% annually? How much will this individual actually pay for the stock?

a. Darius will purchase the stock for $257.50

b. Darius will purchase the stock for $257.51

c. Ashley will purchase the stock for $343.34

d. Ashley will purchase the stock for $257.51

e. Emily will purchase the stock for $145.74