11. other uses such as sives, is a good used as medium of exchange that has intr
ID: 1114844 • Letter: 1
Question
11. other uses such as sives, is a good used as medium of exchange that has intrinsic value in as other uses such as silver A. Commodity Money B. Fiat Money C. Alternative Paper D. Bond Payment 12. is a medium of exchange whose value derives entirely from its official status as a means of payment A. Commodity Money B. Fiat Money C. Alternative Paper D. Bond Payment 13 consists roughly speaking, of assets you can use to buy groceries: currency, traveler's checks, and checkable deposits. A. M1 B. M2 C. M3 D. M4 14. is a broader term than M1 because it includes things like savings accounts that can quickly and easily be converted into M1. A. M2 B. M3 C. M4 D. M5 are the currency banks hold in their vaults plus their deposits at 15. the Federal Reserve. A. Bank Buybacks B. Currency Swaps C. Commodity Holdings D. Bank Reserves 16. The is the fraction of bank deposits that a bank holds as reserves. A. Discount Rate B. Reserve Ratio C. Bank Reserves D. Commodity HoldingsExplanation / Answer
11) ______ is a good used as medium of exchange that has intrinsic value in other uses such as silver
Solution: Commodity Money
Explanation: Commodity money is inclusive of those objects that have value in themselves i.e. intrinsic value and it's value in their use as money.
12) _____ is a medium of exchange whose value derives entirely from its official status as means of payment
Solution: Fiat Money
Explanation: Fiat Money are the inconvertible paper money that are made legal tender by a decree of government.
13) ______ consists roughly speaking, of assets you can use to buy groceries: currencies, traveler's checks and checkable deposits
Solution: M1
Explanation: M1 is inclusive of assets to buy groceries: currency, traveler's checks, and checkable deposits
14) _____ is a broader term than M1 because it includes things like saving accounts that can be quickly and easily converted into M1
Solution: M2
Explanation: M2 includes include assets that are highly liquid however are not cash.
15) _______ are the currency bank holds in their vaults plus their deposits at the Federal Reserve
Solution: Bank reserves
Explanation: Bank reserves are commercial banks holdings of deposits in accounts with a central bank plus currency bank holds in their vaults
16) The _____ is the fraction of bank deposits that a bank holds as reserves
Solution: Reserve ratio
Explanation: Reserve ratio is the minimum the fraction of bank deposits that a bank holds as reserves
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