Question

Which of these goods could satisfy the three roles of money?

Question 3 options:

	baseball cards
	Hershey's chocolate bars
	bananas
	chariot wheels

Question 9 (1 point)

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Which of the following federal reserve actions would result in an increased money supply?

Question 9 options:

	reduce interest paid on reserves at the central bank
	impose capital requirements
	increase reserve requirements
	sell bonds

Answer 1

1 - Option A

Baseball cards

The three main role of money are medium of exchange , unit of account and store of value. All these three functions can be performed only by baseball cards. In early times also , they have been used as money. Hence Option A will be correct.

2 - Option A

Reduce the interest paid on reserves at central bank

This will lead to banks keeping lesser money with CB and hence lending power will rise leading to more money supply. All the other options reduce the money supply. Hence Option A will be correct.