Money is destroyed when:
A. loans are made.
B. checks written on one bank are deposited in another bank.
C. loans are repaid.
D. the net worth of the banking system declines.
C. loans are repaid.
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According to this Application, cell phones were introduced to the public in 1983, but it took the Bureau of Labor Statistics ________ to include them in calculating the CPI
A) 3 years B) 7 years C) 15 years D) 24 years
The largest category of capital-market instrument is
A) corporate stock. B) large-denomination negotiable certificates of deposit. C) U.S. government securities. D) commercial and consumer loans.
When a rug factory increases the labor it hires from 10 to 12 workers, the number of rugs produced increases from 16 to 20 . We know then that the marginal physical product of labor is
a. increasing b. negative c. impossible to compute d. 4 rugs e. 2 rugs
Which statement is true?
A. Money may perform as a standard of value or as a store of value, but not both at the same time. B. The main job of money is a medium of exchange. C. Money may perform as a standard of value or as a standard of deferred payment, but not both at the same time. D. Money performs extremely well as a standard of deferred payment in the long run.