A bond is considered: A) M1. B) a liability for the owner of the bond that is part of the money supply. C) an asset for the owner of the bond that is not part of the money supply. D) M2.
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A bond is considered: |
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A) |
M1. |
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B) |
a liability for the owner of the bond that is part of the money supply. |
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C) |
an asset for the owner of the bond that is not part of the money supply. |
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D) |
M2. |
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- Which bond should have the highest interest rate? A. Low quality bonds B. Medium quality bonds C. High quality bonds Which of the following statements is NOT true? A. Stock owners benefit from stock price increases B. Common stocks are not securities C. Stock prices tend to be very volatile D. Higher stock prices allow companies access to more capital What is the expected impact of a decline in the money supply to the US economy? A. Lower aggregate prices (deflation) B. Higher aggregate prices (inflation) C. There is no general relationship between the money supply and inflaton Which of the following is NOT a component of federal fiscal policy? A. Federal tax revenues B. Federal government expenditures C. Federal budget deficit D. All of the above are components of federal fiscal policy A strong US dollar tends to A. Reduce exports to foreign…If an individual expects interest rates to increase, then He will have a larger speculative demand for money. He will concentrate his wealth in his bonds. His transactions demand for money should fall. None of the above will occur.The speculative demand for money is... A. positively related to interest rates. B. inversely related to interest rates. C. directly related to income. D. an active balance (earns interest).
- Refer to Figure 11.3. If the demand for money curve will shift from Md1 to Md0 and the interest rate remains at 5%, there will be Group of answer choices an equilibrium in the bond market. an excess supply of money. an equilibrium in the money market. an excess demand for money.23. Fiat money is _________. a. comprised only of demand deposits. b. money because the government asserts that it is. c. Money which is “resting” in a commercial bank vault. d. Money which can be redeemed for an intrinsically valuable commodity such as gold.Let M subscript t denote the initial money supply. A friend of yours does not trust banks and keeps all his money in cash. He buys an old car for $20,000. The seller deposits the money in her checking account in Citibank. The bank keeps 10% of the deposit in reserve and lends the rest to Jack. Jack keeps $1,000 in cash and spends the remainder on NVIDIA stock. The seller of the stock, Jane, transfers the whole amount to her checking account in Wells Fargo. Wells Fargo keeps 20% of the amount in reserve and lends to rest to Joshua. Joshua keeps $1,600 in cash and spends the rest on treasury securities. The seller of the securities happens to be the Fed. A fire in Joshua's uninsured house destroys $600 of his cash. Let M subscript t plus 1 end subscript denote the resulting money supply. Calculate the change in the money supply, M subscript t plus 1 end subscript minus M subscript t.
- Question 8 True or False. A living will is a document that is ambulatory until the death of the decedent and then it describes how the decedent's property should be distributed. True False Question 9 Donald puts a lot of money into a bucket and gives Bernie a power of appointment over the money in the bucket. Bernie has the power to distribute that money only to himself, his creditors, his estate, or his estate's creditors. What is the correct name for his power of appointment? It is a/an: General power of appointment Limited power of appointment Question 10 True or False. The spousal consent rules for the annual exclusion require the non-donor spouse to consent to all gifts made by the donor spouse in that year; he or she cannot select which gifts he or she will join and which he or she will not. True FalseMoney is Neither the most liquid asset nor perfect store of value not the most liquid asset but a perfect store of value the most liquid asset and a perfect store of value the most liquid asset but an imperfect store of assetWhich of the following is not considered a characteristic of money? Question 3 options: It is a unit of account It can be used to make future payments It is a means of payment It must have intrinsic value
- Refer to Figure 11.2. An increase in the money supply, ceteris paribus, will likely Group of answer choices increase the equilibrium interest rate and decrease equilibrium money holdings. increase the equilibrium interest rate without changing equilibrium money holdings. decrease the equilibrium interest rate without changing equilibrium money holdings. decrease the equilibrium interest rate and increase equilibrium money holdings.Economics Suppose that there is excess supply of money at the current interest rate. During the adjustment process: a. interest rates will rise and bond prices will fall b. interest rates and bond prices will both rise c. interest rates and bond prices will both fall d. interest rates will fall and bond prices will rise Explain it correctlyIn defining money as M1 economists exclude time deposits on the grounds that _________. a. the intrinsic value of time deposits is nothing. b. the purchasing power of time deposits is much less stable than that of demand deposits and currency. c. they are not directly or immediately a medium of exchange. d. they are not recognized by the government as legal tender. e. They are quantitatively negligible as compared to checkable deposits.