Fiat money is: a. includes currency and gold in bank vaults. b. does not include coins. c. is backed by any sort of commodity. d. has no value outside of its use as money. ANSWER D
Date: September 10th, 2020
Historians are in general agreement that (a) railroads opened the country and were built at great risk ahead of demand, gambling on the future. (b) railroads sharply cut down transportation costs, linking the country together in all directions and spurring the nation’s growth far in advance of anything that might otherwise have been achieved. (c) […]
Date: September 10th, 2020
Which of the following are NOT true? a. Credit cards are the same as debit cards when determining the money supply. b. Credit cards are included in M2 but not M1. c. Credit cards do not impact the demand for money. d. Credit cards are a means of payment. e. All of the above are […]
Date: September 10th, 2020
Why did the money supply fall during the Great Depression? a. The monetary base fell throughout the Great Depression. b. The amount of currency fell during the Great Depression. c. The ratio of currency/deposits fell during the Great Depression. d. The money multipier rose during the Great Depression. e. None of the above. ANSWER […]
Date: September 10th, 2020
What was the Federal Trade Commission (FTC), established in 1914, created to enforce? (a) U.S. foreign trade (b) The maritime code (c) The Interstate Commerce Act (d) The antitrust laws ANSWER (d)
Date: September 10th, 2020
If the monetary base doubles but the ratios of currency/deposit and reserves/deposits remain the same, then: a. The money supply doubles. b. The money supply quandrouples. c. The money supply changes by two times the money multiplier. d. The money supply remains unchanged. ANSWER C
Date: September 10th, 2020
What is the function of the system of federal regulation created by Congress from 1887 until now? (a) To change the outcomes of market decisions (b) To enforce the outcomes of market decisions (c) To replace market allocations with economic planning (d) To enforce the law ANSWER (c)
Date: September 10th, 2020
Which statement best describes the railroad? (a) It is a good example of “technology transfer” (from England to the U.S.)—the first operating railroad was in England. (b) It is an American home product—the first operating railroad was in the U.S. (c) It was invented in England but first put into operation in the U.S. (d) […]
Date: September 10th, 2020
An increase in the required reserve ratio will lead to a/an: a. increase in the monetary base. b. increase in the money multiplier. c. increase in the money supply. d. both b and c. e. both a and c. ANSWER D
Date: September 10th, 2020
In Nebbia v New York (1934), the doctrine of Munn v Illinois (1877) (a) was held to be irrelevant. (b) was upheld for all cases. (c) was upheld for interstate commerce. (d) was overturned explicitly. ANSWER (b)
Date: September 10th, 2020
