Barter requires a double coincidence of wants. This means that:
a. at least two traders must demand a commodity.
b. any two traders involved in a transaction must have money.
c. each trader must demand at least two commodities.
d. either of the two traders involved in a transaction must have money.
e. when two traders are involved in a transaction each trader must want what the other has to offer.
e
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A commercial bank's reserves are equal to the amount of
A) the bank's loans. B) only the currency in its vault. C) currency in the bank's vault plus the balance on its reserve account at a Federal Reserve Bank. D) the bank's deposits. E) the bank's government securities.
The assumed goal of the firms that operate in each of the four market structures discussed in the text is to maximize:
A) sales. B) revenue. C) profits. D) price.
Other things being equal, the relationship between price and quantity supplied is
A) negative. B) constant. C) positive. D) non-existent.
All of the following are functions of the Federal Reserve System (the Fed) EXCEPT
A. check clearing. B. supplying currency. C. lender of last resort for consumers. D. regulation of the money supply.