As of December 2010, the largest single component of M2 consists of
A. checkable deposits at banks.
B. cash, coins, and other currency.
C. savings deposits.
D. gold and silver in commodity accounts.
Answer: C
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According to this Application, more years of work would be required to pay off a student loan if all prices
A) increased by 20 percent. B) remained stable. C) increased by 40 percent. D) decreased by 10 percent.
The experience of Paul Volcker's fight against inflation during the late 1970s and early 1980s indicates that firms and workers
A) had adaptive expectations. B) had rational expectations and that they trusted Fed announcements. C) preferred high unemployment to high inflation. D) Both A and B are correct answers.
Perfect competition is more conducive to technological change than any of the other market structures.
Answer the following statement true (T) or false (F)
In its role as bank for the U.S. government, the Federal Reserve performs all of the following services, except:
A. maintaining the U.S. Treasury's bank account. B. managing U.S. Treasury borrowings. C. issuing new currency. D. making discount loans.