Question :
71) Susan just sold her text books for $200 cash : 1227855
71) Susan just sold her text books for $200 cash and deposited the cash she received in her checking account. This transaction has
A) increased the quantity of M1.
B) decreased the quantity of M1.
C) increased the quantity of M2.
D) decreased the quantity of M2.
E) not changed either M1 or M2.
Answer: E
Topic: M1, M2
Skill: Level 2: Using definitions
Section: Checkpoint 11.1
Status: CD new
72) M2 consists of
A) M1 plus traveler’s checks.
B) M1 plus saving deposits, small time deposits, and money market funds.
C) M1 plus checkable deposits.
D) M1 plus currency at the banks.
E) M1 plus Federal Reserve notes.
Answer: B
Topic: M2
Skill: Level 1: Definition
Section: Checkpoint 11.1
Status: AA
73) Which of the following are included in the M2 definition of money?
A) currency outside of banks and checkable deposits
B) currency outside of banks and credit lines on credit cards
C) time deposits and the value of prime grade bonds
D) currency both inside and outside of banks
E) currency inside of banks and banks’ reserves
Answer: A
Topic: M2
Skill: Level 1: Definition
Section: Checkpoint 11.1
Status: RS
74) If we look at the components of M2, we find that
A) money market funds are the largest component.
B) savings deposits are the largest component.
C) currency is the largest component.
D) banks’ reserves are the largest component.
E) loans are the largest component.
Answer: B
Topic: M2
Skill: Level 2: Using definitions
Section: Checkpoint 11.1
Status: WM
75) In December 2009, currency outside of banks was $400 billion, traveler’s checks were $5 billion; checkable deposits owned by individuals and businesses were $600 billion, saving deposits were $2,000 billion, time deposits were $1,500 billion; and money market funds were $1,200 billion. What was the M2 in December 2009?
A) M2 = $5,705 billion
B) M2 = $3705 billion
C) M2 = $1,005 billion
D) M2 = $2,505 billion
E) M2 = $5,700 billion
Answer: A
Topic: M2
Skill: Level 3: Using models
Section: Checkpoint 11.1
Status: CD
76) If currency outside of banks is $800 billion; traveler’s checks are $10 billion; checkable deposits owned by individuals and businesses are $700 billion; savings deposits are $4,000 billion; small time deposits are $1,000 billion; and money market funds and other deposits are $800 billion, then M2 equals ________ billion.
A) $7,310
B) $5,800
C) $2,510
D) $1,510
E) $710
Answer: A
Topic: M2
Skill: Level 2: Using definitions
Section: Checkpoint 11.1
Status: MR
77) The above table has information about the hypothetical economy of Robotica. Based on the data, the size of M1 is
A) $610 billion.
B) $1,510 billion.
C) $600 billion.
D) $1,110 billion.
E) $2,600 billion.
Answer: A
Topic: M1
Skill: Level 2: Using definitions
Section: Checkpoint 11.1
Status: CD
78) The above table has information about the hypothetical economy of Robotica. Based on the data, the size of M2 is
A) $2,600 billion.
B) $2,610 billion.
C) $610 billion.
D) $600 billion.
E) $1,710 billion.
Answer: B
Topic: M2
Skill: Level 2: Using definitions
Section: Checkpoint 11.1
Status: CD
79) Physical currency is ________ popular than e-cash, ________.
A) less; and both are portable and recognizable
B) more; and both are portable and recognizable
C) more; but only physical currency is portable and recognizable
D) more; and both are portable, untraceable and anonymous
E) less; but both are portable, untraceable and anonymous
Answer: D
Topic: Money
Skill: Level 1: Definition
Section: Checkpoint 11.1
Status: CD
80) ________ like a check and ________ considered money.
A) Debit cards work; are not
B) Debit cards work; are
C) E-checks work; are
D) E-cash works; is not
E) E-cash works; is
Answer: A
Topic: Money
Skill: Level 2: Using definitions
Section: Checkpoint 11.1
Status: CD
