Which of the following factors will result in the greatest amount of money being created?
a) A $1,000 cash deposit into a checking account.
b) A $1,000 transfer from a checking account to a savings account.
c) $1,000 in coins that is converted into $1,000 in bills.
d) A $1,000 bond that matures which is used to buy another $1,000 bond.
Ans: a) A $1,000 cash deposit into a checking account.
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Which of the following statements correctly identifies a difference between labor and capital?
A) Capital can be rented or owned by a firm, but labor cannot be owned. B) Labor can be rented or owned by a firm, but capital cannot be owned. C) Labor is hired until a point where the marginal product of labor equals the price of labor, whereas capital is hired until a point where the average product of capital equals the price of capital. D) Labor is hired until a point where the average product of labor equals the price of labor, whereas capital is hired until a point where the marginal product of capital equals the price of capital.
In monopolistically competitive markets
A) price is greater than it would be in perfect competition. B) price is less than it would be in perfect monopoly. C) quantity is greater than it would be in perfect monopoly. D) All of the above.
If the price of a good increases and the total revenue remains the same, the demand for the good is
A) elastic. B) inelastic. C) unit elastic. D) perfectly elastic.
Cost pull inflation occurs when the:
A. price of a key input increases suddenly. B. price level changes in response to changes in the business cycle. C. price of necessity goods increases suddenly. D. business cycle becomes sporadic and unpredictable.