Exam 2: Money and the Payments System

According to the quantity theory of money, if the long-run economic growth rate is 2.5%, by how much should the Fed increase the money supply if it wants inflation to be 2%?

Which of the following is the most efficient means of trade?

Which function of money eliminates the need for multiple prices for each good as in a barter system?

The problem of a double coincidence of wants refers to

All of the following are characteristics of debit cards EXCEPT:

Which criterion for suitability as a medium of exchange do Federal Reserve Notes meet?

If prices increase rapidly

What determines the acceptability of dollar bills as a medium of exchange?

According to the equation of exchange, the money supply times the velocity of money equals the

How many prices would there be in a barter economy with 100 goods?

In July 2010, what was the total value of U.S. currency in circulation?

A hyperinflation occurs when

Which of the following describes the behavior of M1 in recent decades?

Which of the following is the largest component of M1?

Why would people outside the United States choose to hold dollars?

The use of checks in transactions

An important reason why economies at an early stage of development tend to operate inefficiently is

What do many economists blame for the severity of the Great Depression?

The attribute that distinguishes money from other assets is that only money

What are the five characteristics that make an asset suitable to be used as a medium of exchange?