Sunday, December 4, 2011

Which of the following cannot be used as money in the U.S?

1.) Which of the following cannot be used as money in the U.S.?


A. five dollar bill B. a $5 deposit in a checking account C. one-seventh of an ounce of gold, worth $5 D. 500 pennies.





2.) "Dollar bills" are really notes issued by the


A. Federal Reserve B. United States Treasury C. Commercial banks D. Bureau of the Mint.





3.) Most of the money in circulation consists of


A. paper money B. coins C. checks D. savings





4.) What is the value of a $10.00 bill?


A. the cost of the paper it is printed on B. $10.00 in gold that is used to back it up C. it is hardly worth the value of the paper it is printed on D. $10.00 in gold and services.





5.) A check is considered money because


A. it is easily obtained from a bank B. it is generally accepted in payment for goods and services C. it is printed by the Federal Reserve D. it is similar in appearance to paper money





6.) The value of money


A. can increase or decrease B. remains the same at all times C. increase with the passage of time D. increases with the amount of gold in the United States treasury.





7.) Reserve requirements describes the system by which banks


A. keep a fraction of their deposits on reserve and do not lend them B. keep all their deposits on reserve C. may lend out sums equal to their deposits D. may lend sums equal to their total deposits plus a fraction beyond this amount.





8.) A basic assumption on which banks operate is that


A. everyone is not entitled to withdraw their deposits at the same time B. all depositors may be required to give advance notice of their intention to withdraw their deposits C. deposits are the property of the bank and are therefore withdrawn only with bank approval D. depositors usually do not withdraw all their deposits at the same time.





9.) The major source of income for banks is


A. service fees b. fees from the sales of government bonds C. interest earned on their loans D. taxes





10.) With a reserve ratio of 25% and deposits of $1,000,000, what is the total amount of money that a commercial bank is permitted to lend?


A. $750,000 B. $4,000,000 C. $250,000 D. I don't know|||Too many different answers to confuse you!





1. C, not generally accepted as payment, not counted in money supply. Anything CAN be used for money in any given transaction, but A and C are required by law to be used, and B is generally accepted.


2. B


3. C


4. D none are the definition, but D is the only one that meets the definition: $10 bill is worth whatever goods and services it can be used to purchase


5. B


6. A


7. A


8. D


9. C


10. A The money multiplier has nothing to do with the amount that an individual bank is allowed to lend out. A bank can lend out excess reserves only. The money multiplier applies to the entire banking system, and what can happen overall after the money is lent out.|||1.A


2.C


3.B


4.C


5.D


6.C


7.B


8.A


9.D


10.B|||May I jam this guys for the best of Michelle?


1.C, gold is not counted in M1 and M2, or money supply.


2.B. only in the US that it is an obligation of the Treasury.


3.C , checkable account.


4.C,we are not in gold standard anymore.


5.B


6.A


7.A


8.D


9.C


10.B, the money multiplier is 1/.25=4

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