The ease with which any financial asset, such as your checking account, your savings account, or your certificate of deposit (CD), can be converted into a medium of exchange (to buy, say, a fish sandwich at McDonald's) is referred to as its
a. velocity
b. accessibility
c. convertibility
d. availability
e. liquidity
E
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Which of the following statements is correct? I. The Fed can periodically and without warning examine member commercial banks to ensure that they are conforming to current banking standards. II The Fed helps the government collect certain tax revenues and aids in the purchase and sale of government securities.
A) I only B) II only C) Both I and II D) Neither I nor II
In the long run, both monopolistic competition and perfect competition result in:
a. a wide variety of brand-name choices for consumers. b. an efficient allocation of resources. c. zero economic profit for firms. d. excess capacity.
The production possibilities curve has a negative slope because
a. producing more of one good means producing less of the other b. efficiency declines as more of one good is produced c. consumers want to buy more of a good as its price decreases d. it becomes harder to find workers as more goods are produced e. the law of increasing costs is violated
A price level lower than equilibrium will cause quantity supplied to exceed quantity demanded
a. True b. False Indicate whether the statement is true or false