Define exchange currency for deposits

Assignment Help Microeconomics

Reference no: EM13176812

1.National saving refers to:

A) disposable income minus consumption.

B) taxes minus government spending.

C) income minus consumption minus government spending.

D) income minus investment.

2.In a fractional-reserve banking system, banks create money when they:

A) accept deposits.

B) make loans.

C) hold reserves.

D) exchange currency for deposits.

3.The real interest rate is equal to the:

A) amount of interest that a lender actually receives when making a loan.

B) nominal interest rate plus the inflation rate.

C) nominal interest rate minus the inflation rate.

D) nominal interest rate.

4. In the classical model with fixed income, if the demand for goods and services is greater than the supply, the interest rate will:
A) increase.
B) decrease.

C) remain unchanged.
D) either increase or decrease, depending on whether consumption is greater or less than investment.

5. In the classical model with fixed income a decrease in the real interest rate could be the result of a(n):

A) increase in government spending.

B) increase in desired investment.

C) increase in taxes.

D) decrease in taxes.

6. Assets of banks include:

A) money market mutual funds.

B) currency in the hands of the public.

C) loans to customers.

D) demand deposits.

7. If currency held by the public equals $100 billion, reserves held by banks equal $50 billion, and bank deposits equal $500 billion, then the monetary base equals:

A) $50 billion.

B) $100 billion.

C) $150 billion.

D) $600 billion.

8. If currency held by the public equals $100 billion, reserves held by banks equal $50 billion, and bank deposits equal $500 billion, then the money supply equals:

A) $100 billion.

B) $150 billion.

C) $600 billion.

D) $650 billion.

9. The general demand function for real balances depends on the level of income and the:

A) real interest rate.

B) nominalinterestrate.

C) rate of inflation.

D) price level.

10. If the money supply is held constant, then an increase in the nominal interest rate will ______ the demand for money and ______ the price level.

A) increase; increase

B) increase; decrease

C) decrease; increase

D) decrease; decrease

Reference no: EM13176812

Questions Cloud

State the most probable distance of the innermost electrons : Its atomic number was believed to be 126. What is the most probable distance of the innermost electrons from the nucleus of an atom of this element?

Explain how india is relatively abundant in skilled labor : Computer software utilizes skilled labor relatively intensively.If trade between the U.S. and India is free, which good will the U.S. export and which will it import? What will happen to production of the two goods (increase or decrease) in the U...

State the oxidizing agent and reducing agent in the reaction : Identify the oxidizing agent and reducing agent in the reaction. give breif rational for how this answer is arrived

Phenyl acetate and benzyl alchol from an alumina column : Predict and explain the order of elution (fastest to slowest) of benzoic acid , biphenyl, phenyl acetate and benzyl alchol from an alumina column

Define exchange currency for deposits : In the classical model with fixed income a decrease in the real interest rate could be the result of a(n): If currency held by the public equals $100 billion, reserves held by banks equal $50 billion, and bank deposits equal $500 billion, then the ..

State base-promoted hydrolysis of methyl mesitoate : (a) Can you suggest a reason that accounts for this unusual behavior? (b) Suggest an experiment with labeled compounds that would confirm this mode of attack.

How can find beaker contains pure water : One beaker contains pure water, another contains salt water, and another contains sugar water. How can you tell the which beaker is Which?

State how much ammonia would be spent to remove the nox : How much ammonia would be spent to remove the NOx generated, expressed in kg of of NH3 per 100 kg of fuel?

Compute the bond order : Draw the pictures of the overlap of the atomic orbitals to make all of the molecular orbitals and for any non-bonding orbitals as well.

User Account

All Pages