Question 1

The quantity of real money demanded is

Accepted Answer

A)  negatively related to the price level. 
B)  positively related to the price level. 
C)  independent of the price level. 
D)  sometimes negatively and sometimes positively related to the price level. 
A)  negatively related to the price level. 
B)  positively related to the price level. 
C)  independent of the price level. 
D)  sometimes negatively and sometimes positively related to the price level.

Question 2

$$\begin{array} { | c | c| } 
\hline  { \text { Component } } & \begin{array} { c } 
\text { Amount } \
\text { (billions of dollars) }
\end{array} \
\hline \text { Currency } & 235 \
\hline \text { Checking deposits } & 570 \
\hline \text { Savings deposits } & 416 \
\hline \text { Traveler's checks } & 8 \
\hline \text { Time deposits } & 1,144 \
\hline \begin{array} { l } 
\text { Money market mutual } \
\text { funds }
\end{array} & 930 \
\hline \begin{array} { l } 
\text { Available credit on credit } \
\text { cards }
\end{array} & 675 \
\hline
\end{array}$$
-According to the table above,the value of M1 is ________ and the value of M2 is ________.

Accepted Answer

A)  $813 billion; $2490 billion 
B)  $805 billion; $2490 billion 
C)  $813 billion; $3303 billion 
D)  $1,488 billion; $3978 billion 
A)  $813 billion; $2490 billion 
B)  $805 billion; $2490 billion 
C)  $813 billion; $3303 billion 
D)  $1,488 billion; $3978 billion

Question 3

When the Fed sells government securities to a bank,how are the Fed's assets affected?

Accepted Answer

A)  The amount of the Fed's government securities decreases. 
B)  The amount of the Fed's government securities increases. 
C)  The amount of reserves held at the Fed increases. 
D)  The amount of reserves held at the Fed decreases. 
A)  The amount of the Fed's government securities decreases. 
B)  The amount of the Fed's government securities increases. 
C)  The amount of reserves held at the Fed increases. 
D)  The amount of reserves held at the Fed decreases.

The quantity of real money demanded is

Component Amount (billions of dollars) Currency 235 Checking deposits 570 Savings deposits 416 Traveler's checks 8 Time deposits 1,144 Money market mutual funds 930 Available credit on credit cards 675 -According to the table above,the value of M1 is and the value of M2 is .

When the Fed sells government securities to a bank,how are the Fed's assets affected?

What Is Economics

The Economic Problem

Demand and Supply

Measuring GDP and Economic Growth

Monitoring Jobs and Inflation

Economic Growth

Finance, Saving, and Investment

The Exchange Rate and the Balance of Payments

Aggregate Supply and Aggregate Demand

Expenditure Multipliers

Inflation, Jobs, and the Business Cycle

Fiscal Policy

Monetary Policy

International Trade Policy

Introduction

Monitoring Macroeconomic Performance

Macroeconomic Trends

Macroeconomic Fluctuations

Macroeconomic Policy

Filters

Exam 8: Money, The Price Level, and Inflation

The quantity of real money demanded is

Component Amount (billions of dollars) Currency 235 Checking deposits 570 Savings deposits 416 Traveler's checks 8 Time deposits 1,144 Money market mutual funds 930 Available credit on credit cards 675 -According to the table above,the value of M1 is ________ and the value of M2 is ________.

When the Fed sells government securities to a bank,how are the Fed's assets affected?

What Is Economics

The Economic Problem

Demand and Supply

Measuring GDP and Economic Growth

Monitoring Jobs and Inflation

Economic Growth

Finance, Saving, and Investment

The Exchange Rate and the Balance of Payments

Aggregate Supply and Aggregate Demand

Expenditure Multipliers

Inflation, Jobs, and the Business Cycle

Fiscal Policy

Monetary Policy

International Trade Policy

Introduction

Monitoring Macroeconomic Performance

Macroeconomic Trends

Macroeconomic Fluctuations

Macroeconomic Policy

Filters

Component Amount (billions of dollars) Currency 235 Checking deposits 570 Savings deposits 416 Traveler's checks 8 Time deposits 1,144 Money market mutual funds 930 Available credit on credit cards 675 -According to the table above,the value of M1 is and the value of M2 is .