Exam 22: Money and Inflation

If the Fed sells $1 million of government bonds to a bank, it has the same effect on deposits and reserves as if the Fed sold $1 million of government bonds to the general public.

The money supply is defined as the total currency available in the country minus the total bank deposits.

The relationship between money and nominal GDP in the economy is summarized by

For an individual bank, does it make a difference in terms of loan creation whether the Fed buys the government bond directly from the bank or from a private bond dealer who deposits the proceeds in the bank?

Starting in the mid-twentieth century, paper money began to be used widely and supplemented or replaced coins as a form of money.

Barter represents a great technological improvement over coins.

A commercial bank is

If the Fed increases reserves in the banking system,

Which of the following is true about barter?

Fill out the following table using the quantity equation:

Which of the following statements is true when the Fed increases reserves by buying a government bond from a bank?

The Federal Reserve System is a government agency.

Governments supply virtually all the coin and paper money that is used as a medium of exchange in an economy. Economists refer to coin and paper money together as

To economists, money

The functions of money do not include

Under a barter system,

Exhibit 22-1 -The data in Exhibit 22-1 shows the balance sheet (in millions of dollars) for Bank INF. Assuming the bank's reserves are what is required by law, the required reserve ratio is

The voting members of the FOMC are

Exhibit 22-3 -According to the data in Exhibit 22-3, the price level in 2013 was

Suppose that transactions are conducted in pesos and prices are quoted in dollars. In this case the peso is used primarily as a