Households and businesses often hold some of their wealth as non-interest earning money balances because O a. Money balances always pay lower rates of return than the non-money assets O b. The opportunity cost of holding money balances is lower than that of other assets Money balances provide convenience and lower risk than many other assets O C. O d. Money balances offer a better protection against rising prices than do many other assets

Saved There is a reserve requirement of 23 percent in the United States. If the Federal Reserve makes an open market purchase of $23 million, the money supply will Multiple Choice Graw Hill decrease by $100 million. increase by $529 million. decrease by $529 million. increase by $100 million. 1 ! 87 & R T Y U ( 8 9 1 0 0 D F G H J K

Use the figure below to answer the following question(s): Rate of Interest (%) O OG OC OH Sm3 OD 00 Smi 10 Sm2 D Q3 Q₁ Q₂ Quantity of Money -Dmz -Dm1 Refer to the above graph which shows the supply and demand for money where Dm1, Dm2, and Dm3 represent different demands for money and Sm1, Sm2, and Sm3 represent different levels of the money supply. The initial equilibrium point is A. What will be the new equilibrium point following an increase in the money supply? -Dm3 Jhay G

2. When you discover a $20 bill in your coat pocket that you placed there last winter, you find you were unexpectedly using money as a O medium of exchange. store of value. unit of account. factor of production.

Question 18 The maximum amount of money that you can charge on a credit card is called: OA. Monthly statement. OB. Credit limit. Oc. Debt ratio. OD. None of the above. Question 19 Which of these choices shows the smartest thinking? e my credit card to finance purchases. Save and Quit use y credit card to build my credit and for convenience. But I try to never finance purchases with my credit card. Instead, if I really do need to DELL $ 4 5 W e

Suppose the banking syslem in country A has $300 billion in lotal reserves and $12,000 bilion in money supply. the excess reserve ratio is ON, and curency in crculation (C) is zoro, the reserve requirement ratio is Da8 percent O25 percent Oca percent Oa. Not enough information is provided to answer this question Oeon of Moving to another queston will save this resporise MacBook Pro T1 56 IP %3D 3. 6. 7. 8 A 9. 3 4 P T. Y. W

When a bank suffers deposit outflows and has no excess reserves, the bank will generally first try to raise the funds by O A. calling in some loans. B. borrowing from the Fed. C. selling some of its securities. D. selling some loans. Suppose that a bank has $80 in checkable deposits, reserves of $15, and a reserve requirement of 10%. Also assume that the the bank suffers a $10 deposit outflow. If the bank chooses to borrow from the Fed to meet its reserve requirement, then the bank would need to borrow $. (Round your response to the nearest two decimal place.)

If Canadian Tire issues its own "money" and it becomes generally accepted by people in paying for goods and services at other stores, then we would consider it to 84 be ca htt O A. legal money because Canadian Tire is a Canadian incorporated company. O B. a form of fiat money. O C. Mlegal money because the government has not issued it O D. a form of fiduciary money As hav