Which of the following combination of assets are considered tobe money? currency

Question

Which of the following combination of assets are considered tobe money?
       currency in circulation,checkable bank deposits, and credit cards
       currency in circulation,checkable bank deposits, and travelers' checks
       currency in circulationand in bank vaults, checkable bank deposits, and travelers'checks
       currency in circulationand in bank vaults, checkable bank deposits, and creditcards

Banks create money when they ______.
       make loans
       take deposits
       hold excessreserves
       pay withdrawals todepositors

An increase in the aggregate price _______.
       increases the nominaldemand for money
       decreases the nominaldemand for money
       does not affect thenominal demand for money
       shifts the nominal demandfor money to the left

In the long run, changes in the money supply _______.
       affect both the aggregateprice level and aggregate output
       affect only the pricelevel but they do not change aggregate output
       affect aggregate outputbut not the aggregate price level
       have no impact on eitherthe aggregate price level or aggregate output

All of the following factors shift the real money demand curveto the right except a(n) _______.
       decrease in the numberof stores accepting credit cards
       increase in the pricelevel
       breakdown ininformation technology that disables ATMs
       increase in realaggregate spending

Explanation / Answer

Answer: CAABC

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