Are checking accounts money?
A. No, because checking accounts cannot be traded for goods and services.
B. Yes, because checking accounts can be used to buy goods and services.
C. No, because checking accounts are not physical money.
D. Yes, because the value of a checking account is measured in dollars.
Ans: B. Yes, because checking accounts can be used to buy goods and services.
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Economic growth is usually defined as
A) the increase in output over time, as measured by real per capita Gross Domestic Product (GDP). B) the reduction in the real cost of necessities. C) the rate of increase in output divided by the increase in labor. D) the increase in input availability.
The nation of Futura has an actual capital-labor ratio which is in steady state. Futura will experience
A) no growth from convergence and the economy will remain on its balanced growth path. B) positive growth from convergence to keep the economy on its balanced growth path. C) positive growth from convergence, but the growth will be less than the balanced growth rate in order to remain on its balanced growth path. D) negative growth from convergence to offset the increase in the balanced growth rate in order to remain on its balanced growth path.
If the reserve ratio is 10 percent, $1,400 of additional reserves can create up to
a. $140 of new money. b. $14,000 of new money. c. $140,000 of new money. d. None of the above is correct.
Recall the Application about federal quality standards in the market for kiwifruit to answer the following question(s).Recall the Application. After the federal marketing order in 1987, why were the California kiwifruit more likely to be sweet?
A. The federal order required a minimum maturity standard. B. The federal order required that California kiwifruit farmers take lessons from New Zealand farmers. C. The trees were still young in 1987 started to get older and produced better fruit. D. The federal order required that sweet California kiwifruit must be sold only in California.