Checking accounts perform the same market functions as cash.
Answer the following statement true (T) or false (F)
True
The essence of money isn't its taste, color, or feel, but rather its ability to purchase goods and services.
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If the Fed buys $100 in securities from a commercial bank, the
A) Fed's assets will decrease. B) quantity of money will decrease. C) quantity of the bank's reserves will increase. D) amount of the bank's reserves will not change.
If a customer deposits $10,000 in currency into a checking account, the bank's total reserves ________
A) increase B) do not change C) are greater than 100 percent D) decrease
Government controls over industry
(a) limit overall net industrial growth. (b) help all industries. (c) lower consumer costs in the industries assisted by government. (d) encourage the destruction of inefficient and lagging industries.
Which of the following conveys the correct relationship between production and inventories?
A. If planned inventories > actual inventories then increase production. B. If planned inventories < actual inventories then decrease production. C. There is not clear relationship between inventories and production. D. If planned inventories > actual inventories then reduce production.