The M1 measure of money consists of the sum of:
A. checking deposits and travelers' checks.
B. currency, checking deposits, and travelers' checks.
C. currency, checking deposits, and savings deposits.
D. currency and travelers' checks.
Answer: B
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Which of the following statements is true?
A) Knowledge of economics complicates decision making. B) Economics is more of a theoretical subject with limited applications in the real world. C) Testing with data is essential to develop a good theory. D) Cost-benefit analysis can be applied only to limited economic decisions.
The largest proportion of M1 is made up of
A) checking account deposits. B) savings account deposits. C) currency. D) traveler's checks. E) time deposits.
Suppose the Inkuyo family invests in the local bottling corporation. Albert, Brad, Carol, and Diana each invest separately. At the end of a very successful quarter, Carol and Brad receive a payment from the corporation equal to 10 percent of their investment. Albert receives 7 percent, but is paid before Carol or Brad. Diana receives 6 percent. If Diana receives her money before Albert, she must
have invested in a. common stock b. preferred stock c. convertible stock d. corporate bonds e. low-yield dividends
The purpose of creating the European exchange rate mechanism (ERM) was to
A) base trade and investment on comparative advantage. B) prevent currencies from appreciating. C) create barriers to trade. D) let exchange rates float more freely.