monies that are very liquid such as cash, checkable (demand) deposits, and traveler's checks are considered to be

36. To be considered money, an item must have which of the following features? Choose all that apply. O federal government approved durability paper or metal composition O easily divisible

9 An item that is used as money, but which also has value from its use as something other than money is                   .

Suppose that you never carry cash. Your paycheck of $1,000 per month is deposited directly into your checking account, and you spend your money at a constant rate so that at the end of each month your checking account balance is zero.               a.What is your average money balance during the pay period?               b.How would each of the following changes affect your average monthly balance?                             i.You are paid $500 twice monthly rather than $1,000 each month.                             ii.You are uncertain about your total spending each month.                             iii.You spend a lot in the beginning of the month (e.g., for rent) and little at the end of the month.                             iv.Your monthly income increases.

Distinguish between the present worth of cash and future worth of cash?

11. Currently, deposits are insured by the FDIC up to ___________ per depositor per bank.   Question 11 options:   a)  $1,000,000.   b)  $250,000.   c)  $10,000.   d)  $100,000.

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16. A debit card differs from a credit card in that   Question 16 options:   a)  a credit card is a loan while for a debit card purchase, payment is made immediately.   b)  a debit card is a loan while for  a credit card purchase, payment is made immediately.   c)  a debit card is a long-term loan while a credit card is a short-term loan.   d)  a credit card is a long-term loan while a debit card is a short-term loan.

(b) Banks can create money through their expenses. Banks can create money through their expenses. Is this statement true, false or unclear? Please explain.

1 Which of the following is a component of money?  a) bonds  b) saving  c) income  d) stocks  e) none of the above