1/Money that has value apart from its use as money is called? 2/If the reserve r

Question

1/Money that has value apart from its use as money is called?

2/If the reserve ratio is 10%, and banks do not hold excess reserves, when the Fed purchases $10 million of government bonds, bank reserves
A/increase by $10 million and the money supply could eventually increase by $10 million.
B/decrease by $10 million and the money supply could eventually decrease by $100 million.
C/increase by $10 million and the money supply could eventually increase by $100 million.
D/decrease by $10 million and the money supply could eventually decrease by $10 million

3/Which of the following is a store of value and a common medium of exchange?
A/corporate bonds
B/stocks
C/checking account balances
D/Debit cards


4/ Which of the following is a market in which banks lend reserves to one another?
A/required reserve market
B/open market
C/discount market
D/federal funds market

5/ Fiat money is money that has a value apart from its use as money.
True
False


6/Which of the following is not an example of a financial intermediary?
A/ a pension fund
B/an insurance companY
C/a commercial bank
D/the New York Stock Exchange

Explanation / Answer

B/decrease by $10 million and the money supply could eventually decrease by $100 million. A/corporate bonds A/required reserve market true D/the New York Stock Exchange

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