If people use quartz as a medium of exchange, then they:
a. have a barter economy
b. are using commodity money.
c. are using token money.
d. are using legal tender.
e. are using fiat money.
b
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Refer to Table 7-6. Prior to trade, what was the opportunity cost to produce 1 sword in Morocco?
A) 1/2 of a belt B) 1 belt C) 1.5 belts D) 2 belts
Monetary policy directed at expanding GDP growth would include the following?
A. Selling bonds and increasing the discount rate B. Buying bonds and increasing the discount rate C. Decreasing the discount rate and increasing the reserve requirement D. Decreasing the discount rate and buying bonds
Starbucks reports net income for 2018 of $4,518.3 million. Its stockholders’ equity is $5,450.1 million and $1,169.5 million for 2017 and 2018, respectively.
a. Compute its return on equity for 2018. b. Starbucks repurchased over $7,208.7 million of its common stock in 2018. Did this repurchase increase or decrease Starbucks’ ROE? If Starbucks had not repurchased common stock in 2018, what would ROE have been?
Assume that the banking system has $200 billion in reserves. There are no excess reserves in the system. If the reserve requirement is decreased from 10 percent to 8 percent, what will happen to the level of excess reserves in the system?
A. There will be a deficiency of $40 billion in reserves. B. There will be a deficiency of $20 billion in reserves. C. There will be $20 billion in excess reserves. D. There will be $40 billion in excess reserves.