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Eco Test

In: Business and Management

Submitted By moom1
Words 5276
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* Question 1
4 out of 4 points | | | M2 consists ofAnswer | | | | | Selected Answer: | M1 plus amounts in savings accounts, money-market mutual funds (held by individuals), and small time deposits (under $100,000). | Correct Answer: | M1 plus amounts in savings accounts, money-market mutual funds (held by individuals), and small time deposits (under $100,000). | | | | | * Question 2
0 out of 4 points | | | A mechanism by which a short-term loan is made, allowing a shopper to purchase goods or services today and pay at a later date, is known as a ________ card.Answer | | | | | Selected Answer: | debit | Correct Answer: | credit | | | | | * Question 3
4 out of 4 points | | | A type of inside money that allows a shopper to prepay some amount and then spend it at will is a ________ card.Answer | | | | | Selected Answer: | stored-value | Correct Answer: | stored-value | | | | | * Question 4
0 out of 4 points | | | A weighted average of the components of M1 and M2, with the weights dependent on the interest rates of each component, is known asAnswer | | | | | Selected Answer: | a simple-sum monetary aggregate. | Correct Answer: | a Divisia monetary aggregate. | | | | | * Question 5
0 out of 4 points | | | Money created in the private sector, such as checking accounts at banks, isAnswer | | | | | Selected Answer: | outside money. | Correct Answer: | inside money. | | | | | * Question 6
4 out of 4 points | | | Dividing the amount of U.S. currency in circulation by the number of people in the United States shows that, on average, each person holds over $2,000 in cash. The most important explanation for this remarkably large sum isAnswer | | | | | Selected Answer: | most is circulating in foreign

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