14. In an expanding economy: A. NDP exceeds GDP B. Gross private domestic invest

Question

14. In an expanding economy: A. NDP exceeds GDP B. Gross private domestic investment exceeds depreciation C. I exceeds P D. Money GNP but not necessarily real GNP is rising 15. A $25 price tag of a CD in a department store is an example of money funct A. A medium of exchange B. A store of value C. A standard of deferred payment D. A standard of value 16. The principle type of money used in the United States is A. United States Notes B. National Bank notes C. Commercial Bank Note D. Federal Reserve Notes 17. The basic policy making body in the American banking system is A. The council of Economic Advisors B. The Federal Advisory Council C. The Open Market Committee D. Demand Deposits

Explanation / Answer

14) In an expanding economy:

Solution: Gross private domestic investment exceeds depreciation

Solution: When gross investment exceeds depreciation then net investment is positive and economy experiences expanding production capacity

15) A $25 price tag of a CD in a departmental store is an example of money function as

Solution: a unit of account

Explanation: The primary function of money is a unit of account which refers to the agreed measure for stating the prices of goods and services

16) The principle type of money in the United States is

Solution: Federal reserve notes

Explanation: The principle type of money in the United States is Federal reserve notes

17) The basic policy making body in the American banking system is Federal advisory council

Solution: Federal advisory council

Explanation: The basic policy making body in the American banking system is the Board of Governors of the Federal Reserve; and four advisory councils advise and assist the Board on matters of public policy

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