In: Economics
The requirement of a double coincidence of wants is a problem with
Question 1 options:
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 fiat money  | 
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 commodity-backed money  | 
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 commodity money  | 
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 a barter system  | 
Question 4 (1 point)
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True or false: the US dollar has always been a fiat currency.
Question 4 options:
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 True  | 
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 False  | 
Question 5 (1 point)
Which of the following is an advantage to having a fiat currency?
Question 5 options:
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 The government can easily increase the money supply  | 
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 The currency is inherently worth a lot  | 
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 We can exchange the money for gold  | 
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 Only fiat currencies are highly liquid  | 
Question 6 (1 point)
True or false: demand deposits belong to M1 and M2.
Question 6 options:
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 True  | 
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 False  | 
Question 7 (1 point)
What would the money multiplier be if the reserve ratio is 0.25?
Question 7 options:
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 4  | 
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 25  | 
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 5  | 
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 1.33  | 
Question 8 (1 point)
What is the Federal Reserve doing when it increases the money supply through open-market operations?
Question 8 options:
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 reduce the reserve ratio  | 
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 sell bonds  | 
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 impose capital requirements  | 
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 print money  | 
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 buy bonds  | 
Question 9 (1 point)
Which of the following federal reserve actions would result in an increased money supply?
Question 9 options:
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 reduce interest paid on reserves at the central bank  | 
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 impose capital requirements  | 
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 increase reserve requirements  | 
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 sell bonds  | 
Question 10 (1 point)
Suppose the reserve ratio is 0.2. If the Fed wants to increase the money supply by $50 million, what should it do in the bond market?
Question 10 options:
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 sell $50 million in bonds  | 
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 buy $10 million in bonds  | 
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 buy $50 million in bonds  | 
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 sell $250 million in bonds  | 
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 sell $10 million in bonds  | 
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 buy $250 million in bonds  | 
Which of the following is an advantage to having a fiat currency?
Question 5 options:
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 The government can easily increase the money supply  | 
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| 
 The currency is inherently worth a lot  | 
|
| 
 We can exchange the money for gold  | 
|
| 
 Only fiat currencies are highly liquid  | 
Question 6 (1 point)
True or false: demand deposits belong to M1 and M2.
Question 6 options:
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 True  | 
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 False  |