If you save $20,000 for a down payment on a house, you are using money as
A. a medium of exchange.
B. a standard of deferred payment.
C. a unit of account.
D. a store of value.
Answer: D
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If the Fed sells U.S. government securities, the
A) money supply decreases, and the money supply curve shifts to the right. B) money supply decreases, and the money supply curve shifts to the left. C) money supply increases, and the money supply curve shifts to the left. D) money supply increases, and the money supply curve shifts to the right.
About the Federal Reserve System The Federal Reserve System is the central bank of the United States. It performs five general functions to promote the effective operation of the U.S. economy and, more generally, the public interest. The Federal Reserve
What will be an ideal response?
Related to the Economics in Practice on page 125: A reduction in the salience of prices should ________ consumer responses to price increases.
A. not change B. completely eliminate C. increase D. reduce
The given data suggest that the amount of money demanded for transactions:
Answer the question on the basis of the following table in which columns (1) and (2) indicate the transactions demand (D t ) for money and columns (1) and (3) show the asset demand (D a ) for money:
A. varies directly with the interest rate.
B. varies inversely with the interest rate.
C. varies inversely with nominal GDP.
D. is independent of the interest rate.