Exam 8: Money, The Price Level, and Inflation

If you have assets that include $50 in cash,a checking account with $135,a savings account with $500,and a jar of coins for laundry of $15.75,how much M1 do you have?

The velocity of circulation is

When the Federal Reserve lends reserves to depository institutions,it charges them interest.That interest rate is called the

Controlling the quantity of money and interest rates to influence aggregate economic activity is called

Which of the following is NOT an economic benefit of depository institutions?

An increase in the opportunity cost of holding money creates a ________ the money demand curve and an increase in real GDP creates a ________ the money demand curve.

The monetary base does NOT include

"The velocity of circulation is the average speed with which money is loaned to businesses and households." Is the previous statement correct or incorrect?

A money market mutual fund is

The Federal Open Market Committee of the Federal Reserve System is responsible for

Which of the following is NOT an asset of the Federal Reserve System?

A decrease in the quantity of reserves held by commercial banks could be the result of

What are the three functions of money?

When the Fed buys U.S.government securities from a bank,the Fed

Commercial banks do not

Which of the following is an example of money functioning as a medium of exchange?

The data show that money growth and inflation are

In the list of assets below,which is the most liquid?

The required reserve ratio ranges from

In August 2007,Sun Trust Bank has $83 million in loans and $114 million in M1 deposits. If Sun Trust is holding $4 million in reserves,the bank's reserve ratio is