The market where borrowers obtain funds from savers is referred to as the: A) capital market. B) exchange market. C) spot market. D) credit market. ANSWER D
Date: September 2nd, 2020
The precautionary demand for money is when people hold money A) as a medium of exchange. B) for the interest it yields. C) to meet unplanned expenditures. D) as a store of value. ANSWER C
Date: September 2nd, 2020
Which of the following is true of bank reserves held at the Fed? A) These reserves are a liability to the bank and an asset to the Fed. B) These reserves are a liability to both the bank and the Fed. C) These reserves are an asset to the bank and a liability to the […]
Date: September 2nd, 2020
Two variables are related by an accounting identity when: A) the two variables are mathematically identical. B) the two variables have a negative relationshi ANSWER A
Date: September 2nd, 2020
If aggregate demand is stable and there is economic growth, the economy will experience A) secular depreciation. B) secular decline. C) secular deflation. D) secular degeneration. ANSWER C
Date: September 2nd, 2020
The Solow Growth Model is a tool that is used for studying: A) how aggregate demand is determined. B) how net exports are determined. C) how aggregate supply is determined. D) how aggregate income is determined. ANSWER D
Date: September 2nd, 2020
The loanable funds market is also referred to as the: A) spot market. B) credit market. C) exchange market. D) capital market. ANSWER B
Date: September 2nd, 2020
The relationship between the interest rate and the precautionary demand for money is A) nonexistent. B) inverse. C) positive. D) positive sometimes and inverse other times. ANSWER B
Date: September 2nd, 2020
The opportunity cost of holding money A) refers to the amount of paper currency held by the Fed. B) is measured by the alternative interest yield obtainable by holding some other asset. C) is based on the fiduciary monetary system. D) refers to the Fed’s role as the lender of last resort. ANSWER B
Date: September 2nd, 2020
Which of the following is likely to happen due to quantitative easing by the Fed? A) A rightward shift of the demand curve for bank reserves B) A leftward shift of the supply curve of bank reserves C) A leftward shift of the demand curve for bank reserves D) A rightward shift of the supply […]
Date: September 2nd, 2020
