Which of the following is not included in any of the measures of the money supply?
A. Currency in circulation outside of commercial banks.
B. Cash in the vault of a commercial bank.
C. Credit union share drafts.
D. Transactions account balances at mutual savings banks.
Answer: B
You might also like to view...
Assume a firm is able to use an optimal two-part tariff
a. Is the outcome economically efficient? Why or why not? b. What happens to consumer surplus? c. Does this represent perfect price discrimination? Why or why not? What will be an ideal response?
Economic theory predicted that the price of a depletable resource would rise by 10 percent. In reality, the price fell by 5 percent. Which of the following events could explain this discrepancy?
A. Known reserves of the resource were depleted. B. The interest rate rose by 15 percent. C. Antitrust enforcement broke up a cartel among major suppliers of the resource. D. The government imposed an effective price floor.
In the money market, equilibrium is achieved:
a. in the long run by the adjustment of interest rates. b. in the short run by the adjustment of prices. c. in the long run by the adjustment of prices. d. in the short run by changes in the money supply.
In the long run, a monopolistic competitor will produce to the point at which
A. at the lowest possible price. B. average total costs are at the minimum of possible ATC. C. average total costs are higher than the minimum of possible ATC. D. resources are used at the lowest possible cost.