A rate of inflation that exceeds the growth rate of money for a country could be explained by:
A. a decreasing velocity of money.
B. a growing real economy.
C. a constant velocity of money.
D. an increasing velocity of money.
Answer: D
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Cisco is considering opening a financial institution that accepts savings deposits from only its employees and makes loans to only its employees. The best description of this financial institution is that it is a
A) credit union. B) savings and loan association. C) federal government chartered credit bank. D) commercial bank. E) savings bank.
The Board of Governors is the body responsible for setting and implementing monetary policy targets for the Federal Reserve System
a. True b. False Indicate whether the statement is true or false
Three of the four following questions are indicative of the three fundamental economic questions. Leaving out the irrelevant question, rearrange the three relevant questions in the order an economy must answer them. - Should electricity be produced from oil, solar, or nuclear power? - Should corn be produced in the North or in the South? - Who drives a Mercedes? - Should more hybrid cars and fewer SUVs be produced?
A. 1. Should more hybrid cars and fewer SUVs be produced? 2. Should corn be produced in the North or in the South? 3. Should electricity be produced from oil, solar, or nuclear power? B. 1. Who drives a Mercedes? 2. Should more hybrid cars and fewer SUVs be produced? 3. Should corn be produced in the North or in the South? C. 1. Should more hybrid cars and fewer SUVs be produced? 2. Should electricity be produced from oil, solar, or nuclear power? 3. Who drives a Mercedes? D. 1. Should electricity be produced from oil, solar, or nuclear power? 2. Should more hybrid cars and fewer SUVs be produced? 3. Should corn be produced in the North or in the South?
When gross investment is positive, net investment:
A. Is always zero B. Must be negative C. Must be positive D. May be either positive or negative