1: Money is still useful during times of inflation because A: it still retains t

ID: 1095328 • Letter: 1

Question

1: Money is still useful during times of inflation because

A: it still retains the characteristic of predictability of value

B: More money can be made so people can still purchase the goods and services they want

C: it is not a liquid asset

D: Its opportunity cost falls as inflation rises

.....................................................................

2: the opportunity cost of holding a dollar is

A: a dollar

B: the price of a government bond

C: less than a dollar

D: the interest yield that could have been earned by holding some other asset.

....................................

3: The money supply is

A: the rate at which the federal Reserve Board prints currency

B: limited to currency and coins

C: the amount of money in circulation