Which of the following functions of money is also a common function of most other financial assets?
a. a unit of account
b. a store of value
c. medium of exchange
d. None of the above is correct.
b
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A government passes a new law allowing only 1,000 tons of pollution per day to be generated and simultaneously sells 1,000 transferable rights to emit one ton each of pollution per day. Which of the following is true?
a. The pollution will be created by those least willing and able to pay the damages. b. The pollution will be created by those most willing and able to pay for the right to pollute. c. The funds collected by the government will be enough to compensate any individuals harmed by the pollution. d. Pollution will increase from zero to 1,000 units per day. e. There will be no incentive for polluters to try to sneak emissions past government monitoring devices.
The federal funds market is the market where:
a. the federal government raises funds to cover its budget deficit. b. the Federal Reserve System makes loans to commercial banks. c. commercial banks with excess reserves make loans to commercial banks seeking reserves. d. commercial banks make loans to the Federal Reserve.
Inflation
a. hurts society by imposing additional opportunity costs b. is generally harmful, but has the benefit of reducing opportunity costs c. makes it easier for us to comparison shop d. benefits society by causing people to make use of resources that would have otherwise gone to waste e. benefits society because by making people better consumers, they start to buy only those consumer goods they really need
A shift in the demand curve means which of the following?
a) a change in demand at every price b) a rise in prices c) a decrease in both price and quantity demanded d) a change in consumer income