TF Qu. 123 Gold backs the U.S. money supply.... Gold backs the U.S. money supply. True or False True False

Using money to pay debts in the future appeals to its ability to function as a a. medium of exchange b. store of value c. unit of account d. all of the above. e. none of the above.

In the United States control of the money supply is given to:   a. The President b. The Federal Reserve System c. The Bureau of Printing and Engraving d. The Department of the Treasury

Adopting the Gold Standard for a country’s economy implies that     a. Money supply can be easily increased or decreased   b. Interest rates become flexible     c. Utilizing monetary policy tools becomes constrained     d. Fiscal policy becomes flexible

12 Commodity currencies are less prone to inflation since they have value as commodities and thus are melted down – smelted - when prices reach a certain point. True or False? Explain

Checking account balances are included in Select one OF a neither M1 nor M2. • b. both M1 and M2. Oc M1 only. O d. M2 only

Define a put and call on the British pound sterling.

Which type of money has the lowest opportunity cost? a. silver coins b. fiat money c. commodity money d. diamonds e. gold coins

4.People in other countries want to hold U.S. dollars as a  unit of account. medium of exchange.  standard of deferred payment. Store of value

Economics 50 50.The Bank of Canada's monetary policy instrument is, A monetary policy instrument is, A. the monetary base; a variable that the Bank of Canada can directly control or closely target В. the overnight loans rate; a variable that the Bank of Canada can influence but not directly control C. the exchange rate; a variable that the Bank of Canada can influence but not directly control D. overnight loans rate; a variable that the Bank of Canada can directly control or closely target