Question : 61) M1 defined as a measure of money including, in : 1227854

 

 

61) M1 is defined as a measure of money including, in part,

A) checkable deposits and currency.

B) time deposits and currency.

C) currency and savings deposits.

D) time deposits and money market fund deposits.

E) the lines of credit on credit cards and currency.

Answer:  A

Topic:  M1

Skill:  Level 1: Definition

Section:  Checkpoint 11.1

Status:  WM

 

62) Which of the following items is included in the M1 money supply?

A) $10 bills in the Bank of America

B) a $5,000 student loan granted to a U.S. citizen

C) coins in a Pepsi vending machine, waiting to be used as change

D) A $5,000 line of credit on a newly graduated student’s credit card

E) $1,500 in a student’s saving account

Answer:  C

Topic:  M1

Skill:  Level 2: Using definitions

Section:  Checkpoint 11.1

Status:  AA

 

63) Which of the following is NOT a component of M1?

A) demand deposits

B) traveler’s checks

C) savings deposits

D) currency

E) Both answers C and D are correct.

Answer:  C

Topic:  Official measures of money

Skill:  Level 1: Definition

Section:  Checkpoint 11.1

Status:  HG new

 

64) If Rob deposits $300 in currency into his savings account at Bank of America,

A) M1 decreases.

B) M1 does not change.

C) M2 increases.

D) M2 decreases.

E) M1 and M2 both increase.

Answer:  A

Topic:  M1

Skill:  Level 2: Using definitions

Section:  Checkpoint 11.1

Status:  AA

65) Suppose you use your debit card to buy soda from a soda machine. Which of the following is true regarding the transaction?

A) The debit card is not money; it’s only an instruction to make a loan.

B) The debit card is money; your use reflects the exchange of a good.

C) The debit card is not money; its use is only a tool to cause money to move from your account.

D) Your use makes the debit card money as funds are transferred between your and the machine

owner.

E) Using the debit card is like using a check and is, therefore, money.

Answer:  C

Topic:  Money

Skill:  Level 2: Using definitions

Section:  Checkpoint 11.1

Status:  CD new

 

66) When Maria deposits $100 in currency in her checkable deposit at Bank of America, the immediate effect is that the quantity of M1

A) decreases.

B) does not change.

C) increases.

D) changes, but the direction of the change depends on whether the deposit was accepted by a thrift institution or a commercial bank.

E) changes only if Bank of America does not have excess reserves.

Answer:  B

Topic:  M1

Skill:  Level 2: Using definitions

Section:  Checkpoint 11.1

Status:  AA

 

67) When people make deposits of currency into a bank, the quantity of M1

A) immediately decreases by the amount of the deposit.

B) immediately increases by the amount of the deposit.

C) does not immediately change.

D) immediately changes but whether it increases or decreases depends on whether the bank had excess reserves or did not have excess reserves.

E) changes only if the deposit is an open market operation.

Answer:  C

Topic:  M1

Skill:  Level 2: Using definitions

Section:  Checkpoint 11.1

Status:  WM

68) If you deposit $1,000 in cash in your checkable deposit at your bank, the quantity of M1 immediately

A) increases by $1,000.

B) decreases by $1,000.

C) increases by $2,000.

D) does not change in size.

E) changes, but more information about the required reserve ratio is necessary to determine the amount of the change.

Answer:  D

Topic:  M1

Skill:  Level 2: Using definitions

Section:  Checkpoint 11.1

Status:  TPS

 

69) In December 2009, currency was $400 billion, traveler’s checks were $5 billion; checkable deposits owned by individuals and businesses were $600 billion, saving deposits were $2,00 billion, time deposits were $1,500 billion; and money market funds were $1,200 billion. What was the M1 in December 2009?

A) M1 = $405 billion

B) M1 = $1,005 billion

C) M1 = $3,005 billion

D) M1 = $3500 billion

E) M1 = $3505 billion

Answer:  B

Topic:  M1

Skill:  Level 3: Using models

Section:  Checkpoint 11.1

Status:  CD new

 

70) If Joe withdraws a $100 bill from his checking account and Jack deposits another $100 bill in his savings account, by how will M1 and M2 change?

A) M1 will decrease, but M2 will remain the same.

B) M1 will increase, and M2 will increase.

C) M2 will decrease by $100.

D) Both M1 and M2 will remain the same.

E) M1 will remain the same, and M2 will increase.

Answer:  A

Topic:  M1, M2

Skill:  Level 3: Using models

Section:  Checkpoint 11.1

Status:  AA

 

Place your order
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more