There is no completely satisfactory way to define the money supply in the United States because
A) data on the money supply are always approximate and only available after a time lag of several months.
B) much of it is held by the public and so cannot be monitored by the Fed.
C) the Federal Reserve uses a number of different definitions.
D) the liquidity of any asset is a matter of degree.
D
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Would you rather receive $100 in eight years paying an interest rate of 10% or be given 48 dollars today?
A) I would rather receive 48 dollar today. B) I would rather receive $100 in eight years. C) I am indifferent between the two options. D) I cannot determine which I would prefer.
If you buy a bond issued by Intel, the bond is a(n):
A) liability to Intel and an asset to you. B) liability to you and an asset to Intel. C) liability to both you and Intel. D) asset to both you and Intel.
Suppose your donut shop earns $24,000 in total revenues per month with explicit costs of $12,000 and opportunity costs of $8,000. Your accounting profit is
A) $16,000. B) $12,000. C) $4,000. D) zero.
If the reserve ratio is 0.08, the money multiplier is:
A. 8.0. B. 12.5. C. 1.0. D. 10.5.