In order for money to be an effective medium of exchange, it is important to have it serve as a unit of account
Indicate whether the statement is true or false
TRUE
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Suppose a bank has $10 million in capital, $100 million in assets, and after-tax profit of $2 million? what is its return on assets? What is its return on equity?
What will be an ideal response?
When a supply curve or a demand curve shifts, the equilibrium price and equilibrium quantity change
a. True b. False Indicate whether the statement is true or false
If the Fed wants to decrease the money supply, it can:
A. Increase the money multiplier. B. Decrease the discount rate. C. Sell government bonds. D. Decrease the minimum reserve ratio.
If more buyers came into the market for a good, we would expect to see the market demand curve
A) shift inward and to the left. B) remain unchanged since none of the determinants of individual demand changed. C) shift outward and to the right. D) reflect a positive relationship between price and quantity demanded.