Use the following to answer question 16: Table: Components of the Money System C

Question

Use the following to answer question 16: Table: Components of the Money System Components of the Money System (billions of dollas Currency Checkable deposits Travelers checks Smmall-denomination time deposits Savings deposits Money market mutual funds (individuals) 500 Large denomination time deposits $100 300 50 700 75 200 16. (Table: Components of the Money Supply) Refer to the information in the table Components of the Money System. The money supply measured by M1 is: A) $325 billion. B) $450 billion. C) $1,425 billion D) $1875 billion. 17. Open-market operations occur when the Federal Reserve: A) buys U.S. Treasury bills from the federal government. B) buys or sells foreign currency C) buys or sells existing U.S. Treasury bills. D) sells U.S. Treasury bills to the federal government. 18. If a household's disposable income rises from $46,000 to $46,700 and its consumption spending rises from $35,800 to $36,400, then its A) marginal propensity to consume is 0.86 B) marginal propensity to consume is 0.98 C) marginal propensity to save is 0.01 D) marginal propensity to save is 0.86 19. Which of the following is a pre-condition for healthy economic growth? A) B) C) D) a banking industry that's run by and for the government. a politically secure government that protects property rights. government regulations that reduce competition. a government controlled by big corporations.

Explanation / Answer

16. M1 = currency + checkable deposits + traveler's checks

M1 = 100+300+50 = $450

B) $450 billion

Related Questions

Navigate

• Browse (All)
• Browse U
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.