monetary system

function of money?

• Medium of exchange

• unit of account

• Store value

• All answer

What is the difference between commodity and fiat money?

• There are no difference

• With fiat money you can control inflation and with commodity no

• With commodity money you can control supply

• All answer

Which of the following in an example of money functioning as a store of value?

• Comcast charging 99$ for internet, phone and cable service

• McDonald charging 99 cents for a burger

• Your saving your spare change in a jar in order to affront an end-of-term party

• Amazon.com charging 9.95$ for shipping

The main role of the Central Bank is:

• To regulate commercial banks

• To provide services to commercial banks

• To provide service to the public

• Both A and B

• none of the above

In march 2015, Sun trust bank has 83$million in loans and 114$ in M1 deposits.

If Sun trust is holding 4$ million in reserves, the bank's reserve ratio is

• 31$ millions

• 4.8 percent

• 3.5 percent

• 72.5 percent

The quantity of money that people wish to hold in liquid form depend on which of the following factors:

• The price level

• The degree of financial innovation

• The value of the exchange rate

• A and B

• A and C

The purchase of bonds form the central Bank is called:

• Expansionary monetary policy

• Contractionary monetary policy

• Expansionary fiscal policy

• Contractionary fiscal policy

between 2007 and 2008 personal income in the U.S increased from 11$ billion to 11.6 billion. As a result, the real demand for money ......................... and the demand for money curve ................... .

• increased; shifted rightward

• did not change ; did not shift

• increased ; shifted leftward

• decreased, shifted rightward

If the central bank decides to increase the reserves ratio requirement, this is considered as:

• Expansionary monetary policy

• Expansionary fiscal policy

• Contractionary monetary policy

• None of the above

Who is not a central bank?

• FED

• B o E

• EAD

• ECB