In the equation of exchange, the average number of times a dollar is used to purchase a final good or service is the __________ of money
A) turnover
B) elasticity
C) velocity
D) transfer
C
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If the current exchange rate is higher than the Fed's target exchange rate, the Fed would
A) implement purchasing power parity. B) implement interest rate parity. C) buy dollars. D) sell dollars.
Assume that the reserve—deposit ratio is 0.2. The Federal Reserve carries out open-market operations, purchasing $1,000,000 worth of bonds from banks. This action increased the money supply by $2,600,000. What is the currency—deposit ratio?
A) 0.2 B) 0.3 C) 0.4 D) 0.5
A labor union is a group of workers and business owners who join together to improve working conditions
a. True b. False
Gold is a perfect medium of exchange and measure of value because of its
a. divisibility, portability, and homogeneity b. divisibility and durability c. durability and relative scarcity d. durability and homogeneity e. divisibility, durability, and relative scarcity