Bank reserves include:
a. High quality (i.e., AAA-rated) loans.
b. Vault cash and deposits at the central bank.
c. Tellers, who are trained and ready to work in case of a general bank strike.
d. Government bonds, high-quality (e.g., AAA) corporate stocks, and cash in circulation.
e. Checking deposits and borrowings from the central bank.
.B
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Which of the following applies to an object serving as a store of value?
I. If an object can be held and exchanged later for a good or service, it serves as a store of value. II. The less stable an object's value, the better it serves as a store of value. III. A work of art can serve as a store of value. A) I only B) I and II C) I and III D) I, II and III
The direction of change in the trade balance is uncertain because expansionary monetary policy may exert forces in the opposite direction. What are they?
A) An increase in income tends to lower the trade balance, whereas a fall in interest rates through depreciation tends to raise the trade balance. B) An increase in the supply of money raises interest rates, which lowers the trade balance, whereas the increase in the demand for money raises it. C) Exchange rates rise (depreciation) and expected exchange rates fall (appreciation). D) An increase in financial assets raises foreign inflows and raises the trade balance, whereas decreases in interest rates lower the trade balance.
An instance in US history when SRAS increased was
a. The Great Depression (1930s) b. WWII (early 40s) c. OPEC (70s) d. Tech Boom (90s)
Which of the following statements is an accurate statement about the Social Security (OASDI) program?
A. The program transfers income from those who work to those who do not work. B. Only 50 percent of workers are covered by OASDI. C. Benefits are based on financial need. D. The program is financed by voluntary contributions.