Question

11. Cash is counted in the money supply as a part of: both M1 and M2....

11. Cash is counted in the money supply as a part of:
both M1 and M2.
M1 only.
M2 only.
neither M1 or M2.
12. A bond's price and yield:
move in opposite directions.
move in the same direction.
are usually equal in value.
must sum up to 1,000.
13. Barter as a system tends to work only:
among large, multinational corporations.
in primitive economies with little product variety.
in small U.S. towns and villages.
when agricultural products are exchanged.
14. M1 includes:
cash, demand deposits, and small-denomination time deposits.
cash, demand deposits, and large-denomination time deposits.
cash, demand deposits, and other checkable deposits.
cash, savings deposits, demand deposits, money market deposit accounts, small-denomination time deposits, and shares in retail money market mutual funds.
15. In the market for loanable funds, savers are shown:
on a downward-sloping supply curve.
on an upward-sloping supply curve.
on an upward-sloping demand curve.
on a downward-sloping demand curve.

Homework Answers

Answer #1

1.
both M1 and M2.
Cash is counted in the money supply as a part of both M1 and M2.M1 includes cash, demand deposits, and other checkable deposits.M2 includes M! and savings deposits.
2.
move in opposite directions.
A bond's price and yield move in opposite directions.They are inversely related.
3.
in primitive economies with little product variety.
Barter as a system tends to work only in primitive economies with little product variety.Since barter reuires double coincidence of wants it becomes difficult to find someone who requires what you want to give and in turn has what you want.
4.
cash, demand deposits, and other checkable deposits.
M1 includes cash, demand deposits, and other checkable deposits and NOW(negotiable Order of Withdraw)

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