Question

In: Economics

QUESTION 13 The U.S. dollar is called faith money. commodity money, because it is convertible into...

QUESTION 13

The U.S. dollar is called

		faith money.
		commodity money, because it is convertible into gold.
		fiat money because the law decrees it is money.
		convertible money because the government stands ready to convert it into gold or silver.

2 points

QUESTION 14

Which of the following is an example of money?

currency inside the banks

currency in your wallet

checks written as payment for a good or service

credit card used as a payment for a good or service

2 points

QUESTION 15

Checkable deposits are money because

		they are guaranteed by banks.
		they can be converted into currency on demand and are used directly as a means of payment.
		checks bounce when there are not enough funds to cash them.
		only banks and other financial institutions can offer them.

Expert Solution

13 US dollar is a fiat money. Fiat money is any money which is issued by government and not packed by any any commodity.

There is no currency such as faith money. Commodity money is money which value comes from commodity . US dollar is not convertible by govt. So US dollar is a fiat money.

14. Only Money in circulation is considered as money. Currency in banks is not in circulation. It will be in form of loans by banks but they are not directly in circulation. Checks are negotiable instruments, they can not be used directly to purchase something. They must be signed and amount written. Credit cards are just short term loan by banks, they are not considered as money.

So, option B is correct as currency in your wallet can be used directly and acceptable as money.

15. Checkable deposits are money because they can be converted into currency on demand and can be used as payment by using debit cards and checks.

As name suggests, checkable means able to check and used deposits , making other options invalid.

Option B is correct.

Rahul Sunny answered 2 years ago

If the dollar appreciates, perhaps because of speculation or government policy, then U.S. net exports

If the dollar appreciates, perhaps because of speculation or government policy, then U.S. net exports a. increase which shifts aggregate demand right. b. increase which shifts aggregate demand left. c. decrease which shifts aggregate demand right. d. decrease which shifts aggregate demand left.

The opening case discusses the problems facing Apple due to a strengthened U.S. dollar. Because of...

The opening case discusses the problems facing Apple due to a strengthened U.S. dollar. Because of economic performance that has been higher than other economies, the U.S. economy has encouraged more investment, which has contributed significantly to the appreciation of its currency value. Based on these monetary issues, the currency changes cost Apple nearly $5 billion in revenue. As a result, the company must adapt to these trends. to hedge against future increases in the value of the U.S. dollar....

13. An increase in nominal GDP increases the demand for money because: a. interest rates will...

13. An increase in nominal GDP increases the demand for money because: a. interest rates will rise b. bond prices will fall c. the opportunity cost of holding money will decline d. more money is needed to finance more transactions 14. Which of the following would reduce the money supply?: a. Commercial banks use excess reserves to buy government bonds from the public b. Commercial banks loan out excess reserves c. Commercial banks sell government bonds to the public d....

Author Anna Schwartz writes this about money: “The U.S. money supply comprises currency—dollar bills and coins...

Author Anna Schwartz writes this about money: “The U.S. money supply comprises currency—dollar bills and coins issued by the Federal Reserve System and the Treasury—and various kinds of deposits held by the public at commercial banks and other depository institutions such as savings and loans and credit unions.” (Schwartz, n.d) In this threaded discussion, complete the following: 1) Discuss the concept of money. First, define the functions of money and explain how currency meets these functions. 2) Historically, a number...

13. Given the following data on the Dollar/Pound exchange rate (y) and the U.S. CPI (x),...

13. Given the following data on the Dollar/Pound exchange rate (y) and the U.S. CPI (x), determine the linear regression equation, and include the Summary Output from Excel. • Based on the Summary Output is the coefficient b2 significant using the t-table (one-tail) at the 5% level with n-2 df? Prove your answer using data from the t-table. • Does the relationship given by the regression equation seem to be a reasonable economic model-- is it reasonable to assume that...

13. Suppose the Federal Reserve increases the U.S. money supply in an effort to prevent the...

13. Suppose the Federal Reserve increases the U.S. money supply in an effort to prevent the U.S. economy from slipping further into recession. a. According to the Quantity Theory of Money, what will the increased money supply do to the price of goods in the United States in the long run, all else equal? b. According the theory of PPP, what will happen to the exchange value of the U.S. dollar as a result, all else equal? In particular, would...

QUESTION 13 In order to determine the velocity of money, we need to know: a....

QUESTION 13 In order to determine the velocity of money, we need to know: a. the interest rate and nominal GDP. b. the money supply and the price level. c. the money supply and nominal GDP. d. nominal GDP and real GDP. QUESTION 14 The money supply and money demand curves are _____ and ______ respectively. a. Vertical; downward sloping. b. Upward sloping; vertical c. Upward sloping, downward sloping d. ...

Question 45 (3 point) If the exchange rate between the U.S. dollar and the British Pound...

Question 45 (3 point) If the exchange rate between the U.S. dollar and the British Pound is $1.66 per Pound, then what is the Pound per dollar exchange rate? (Express your answer as xx.xx.) Your Answer: If the exchange rate between the U.S. dollar and the Euro is $1.72 per Euro and the exchange rate between the U.S. dollar and the Japanese yen is 108.36 Yen per dollar, then what is the Yen per Euro exchange rate? Your Answer: If...

Question 5A company is criticized because only 13 of 43 people in executive-level positions are women.The...

Question 5A company is criticized because only 13 of 43 people in executive-level positions are women.The company explains that although this proportion is lower than it might wish, it’s notsurprising given that only 40% of all their employees are women. What do you think? Verify ifthe conditionis satisfied. Test an appropriate hypothesis and state your conclusion. (8 points)

QUESTION 13 SECTION 1 Because deflation is so costly, some have argued that setting an inflation...

QUESTION 13 SECTION 1 Because deflation is so costly, some have argued that setting an inflation target at 2 percent is too low and it should be set higher, to 3 percent, especially in the economic environment of 2007–2010. Consider the impact of such an increase in the inflation target using the AD/AS framework in the short and long run. Begin your analysis in the long-run equilibrium. How would you change your answer if expectations are rational and the FED...