Principles of Economics, 7th Edition (MindTap Course List)
7th Edition
ISBN: 9781285165875
Author: N. Gregory Mankiw
Publisher: Cengage Learning
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Question
Chapter 29, Problem 1QCMC
To determine
The supply of money in the economy.
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Explain each of the following types of deposit accounts:
a.demand deposit
b.certificate of deposit
c.money market demand account
The money supply includes all of the following EXCEPT a.Metal coins b.paper currency c.lines of credit accessible with credit cards d.bank balances accessible with debit cards
Money does not include _________________________
Checks against checking accounts.
Debit cards.
Traveler’s checks.
Credit cards.
Chapter 29 Solutions
Principles of Economics, 7th Edition (MindTap Course List)
Ch. 29.1 - Prob. 1QQCh. 29.2 - Prob. 2QQCh. 29.4 - Prob. 4QQCh. 29 - Prob. 1QRCh. 29 - Prob. 2QRCh. 29 - Prob. 3QRCh. 29 - Prob. 4QRCh. 29 - Prob. 5QRCh. 29 - Prob. 6QRCh. 29 - Prob. 7QR
Ch. 29 - Prob. 8QRCh. 29 - Prob. 9QRCh. 29 - Prob. 10QRCh. 29 - Prob. 1QCMCCh. 29 - Prob. 2QCMCCh. 29 - Prob. 3QCMCCh. 29 - Prob. 4QCMCCh. 29 - Prob. 5QCMCCh. 29 - Prob. 6QCMCCh. 29 - Prob. 1PACh. 29 - Prob. 2PACh. 29 - Prob. 3PACh. 29 - Prob. 4PACh. 29 - Prob. 5PACh. 29 - Prob. 6PACh. 29 - Prob. 7PACh. 29 - Prob. 8PACh. 29 - Prob. 9PACh. 29 - Prob. 10PACh. 29 - Prob. 11PA
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- Explain why credit cards are not considered as money.arrow_forwardi. What are the necessary conditions for something to be considered money? Does Bitcoin satisfy these conditions? ii. What are the advantages and disadvantages of El Salvador adopting Bitcoin as legal tender? iii. What share of Salvadorans have access to the internet? How might that affect the use of Bitcoin as a currency? iv. The U.S. already has several ways to make digital transactions, for example, credit/debit cards, Venmo, Zelle, PayPal, and so on. How would a digital currency increase efficiency? v. Many early cryptocurrency investors have adopted a strategy known as HODL—Hold On for Dear Life. They believe that over time the value of cryptocurrencies, such as Bitcoin, will only continue to rise. If this is a dominant strategy among most investors, how does this affect cryptocurrencies’ ability to function as a currency?arrow_forwardWhy were cowrie shells considered a good form of money for centuries a. They are durable b. They are divisible c. They are hard to counterfeit d. All of the abovearrow_forward
- What are bank reserves? a.Deposits that are held in the form of gold reserves b.The fraction of deposits kept as currency that are not used for lending purposes c.The value of the owner’s equity in the bank d.The value of investments a bank keeps in excess of the value of deposits e.The sum of all loans a bank makes to borrowersarrow_forwardWhich of the following is money? A. A check is money because while it is in circulation the quantity of money increases by the amount of the check. B. Deposits are money, checks are not money, and credit cards are not money. C. A credit card is money because it allows you to take a loan at the instant you buy something. D. Currency is money and credit cards are money because they are means of payment, but deposits are not money.arrow_forward1. All of the following described are attributes of Fiat money except: 1. Money without intrinsic value 2. Used as money because of government decree 3. This note is legal tender for all debts, public and private 4. Paper money backed by gold standard 1. In today's energy markets, oil prices have gone higher due to more demand and smaller supply. Due to these current economic conditions, what do you think the Federal Reserve bank governor of Dallas, Texas (energy region of economy) opinion would be on interest rates? 1. Raise interest rates 2. Lower interest rates 3. Keep interest rates the samearrow_forward
- Match each scenario to the function of money that it refers to. A. Angel a buyer for GoCamping store, reviews a price list of various camping supplies before placing an order B. Tonya plans to use money accummulated in his bank account over several years to put a down payment on a house C. Ariel sold 150 cases of wine last week to a local bar 1. Unit of account 2. Medium of exchange 3. Store of valuearrow_forwardThe monetary system in any economy facilitates trade and allows people to trade more efficiently, as compared to a barter economy. In the united states the monetary authority is the federal reserve system what are the requirements for something to be considered money? Why does the dollar have value?arrow_forwardMr. Bill Smith lives in Dayton Ohio and always deposits money into a checking account in a bank nearby. Please calculate the money creation in the U.S. banking system with required reserve ratio at 0.25 in each of the following cases: (a) Bill’s parents wired him $100,000 from Germany. (b) Bill won $100,000 cash from a casino in another state. (c) Bill found $100,000 worth of collectable coins underground at his house. (d) Bill got a $100,000 check which is issued in a U.S. bank from his aunt as gift.arrow_forward
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