Question 41) Money performs all of the following functions EXCEPT serving as a i

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Question 41) Money performs all of the following functions EXCEPT serving as a

i. medium of exchange.

ii. unit of account.

iii. barter mechanism.

Group of answer choices

 

 

iii only

 

i only

 

ii and iii

 

ii only

 

i and ii

 

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Question 42

2 pts

Barter requires the

Group of answer choices

 

 

use of commodity money as a medium of payment.

 

use of money as a unit of account.

 

the triple non-coincidence of wants.

 

use of fiat money as a medium of exchange.

 

exchange of goods and services directly for other goods and services.

 

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Question 43

2 pts

An increase in the supply of money would cause

Group of answer choices

 

 

aggregate supply to increase.

 

aggregate income to decrease.

 

aggregate demand to increase.

 

real GDP to decrease.

 

the price levels to fall.

 

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Question 44

2 pts

An increase the money supply will

Group of answer choices

 

 

have no impact on interest rates charged by banks.

 

causes interest rates charged by banks to decrease.

 

causes interest rates charged by banks to increase.

 

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Question 45

2 pts

An increase in the money supply would likely cause ___________ to ________ .

Group of answer choices

 

 

short-run aggregate supply; increase

 

aggregate demand; decrease

 

aggregate demand; increase

 

short-run aggregate supply; decrease

 

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Question 46

2 pts

The discount rate is

Group of answer choices

 

 

the interest rate for deposits.

 

the interest rate banks charge customers for loans.

 

the interest rate banks charge other other banks for loans.

 

the interest rate the fedral reserve banks charge banks for loans.

 

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Question 47

2 pts

If the money supply grows faster than real GDP, there will likely be

Group of answer choices

 

 

deflation.

 

inflation.

 

no change in prices of goods and services.

 

a decrease in the prices of goods and services.

 

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Question 48

2 pts

The Federal Reserve Bank could increase the money supply by doing all of the following except

Group of answer choices

 

 

decreasing taxes.

 

buying bonds.

 

lowering reserve requirements.

 

lowering the discount rates.

 

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Question 49

2 pts

In the United States,

Group of answer choices

 

 

the President initializes changes in monetary policy and the Fed approves the changes.

 

Congress must approve monetary policy changes.

 

Congress initializes changes in monetary policy and the Fed approves the changes.

 

the Federal Reserve sets monetary policy.

 

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Question 50

2 pts

 

A decrease in the money supply would likely cause ___________ to ________ .

Group of answer choices

 

 

aggregate demand; increase

 

aggregate demand; decrease

 

short run aggregate supply; increase

 

short run aggregate supply; decrease