+1835 731 5494 Email: instantessays65@gmail.com

UMUC ECON201 HOMEWORK 4 LATEST 2015

$12.99

Question Chapter 14 Random Question 1 0 / 1 point In uncertain economic times, ____________________ serves as a way of preserving economic value that can be spent or consumed in the future. a) owning gold b) obtaining a credit card c) refinancing your home mortgage d) buying a new car Question 2 1 / 1 point In an economy with _______________, money loses some buying power each year, but it remains money. a) inflation b) currency c) deflation d) a market orientation Question 3 1 / 1 point __________________ pool the deposits of many investors together and invest them in a safe way like short-term government bonds. a) Money market funds b) Savings deposits c) Time deposits d) Certificates of deposit Question 4 1 / 1 point If Bill performs plumbing upgrades for Alice in exchange for her incorporating his business, then their _________________________ will be satisfied. a) division of labor b) balance of trade c) convenience of exchange d) double coincidence of wants Question 5 1 / 1 point Banks can protect themselves against an unexpectedly high rate of loan defaults and against the risk of ____________________ by adopting a strategy that will ______________. a) an increased reserve requirement; provide loans to a variety of customers b) an asset-liability time mismatch; diversify its loans c) rising interest rates; provide loans to a variety of customers d) rising interest rates; diversify its loans Question 6 1 / 1 point Which of the following is a valid criticism of the use of money as a store of value in modern economies? a) storing money is wasteful b) imperfect as a unit of account c) annual inflationary loss of buying power d) money supply is too narrowly defined Question 7 1 / 1 point The term ___________________ describes the proportion of deposits that the bank must hold in the form of reserves that are not loaned out or invested in bonds. a) bond reserves b) term deposits c) reserve funds d) reserve ratio Question 8 1 / 1 point If loans become far less available, then sectors of the economy that ______________ like business investment, home construction, and car manufacturing can be dealt a crushing blow. a) failed to diversify risk b) make loans to financial capital markets c) depend on borrowed money d) typically generate extraordinary gains Question 9 1 / 1 point In modern economies, _____________________ receive money from savers and provide funds to borrowers. a) governments b) banks c) credit unions d) financial intermediaries Question 10 1 / 1 point If mollusk shells were accepted as a method of payment in modern-day markets, what economic role would they play in the financial system? a) unit of exchange b) medium of exchange c) currency exchange d) capital exchange Question 11 1 / 1 point _____________ are a form of financial instrument through which corporations and governments borrow money from financial investors and promise to repay with interest. a) Time deposits b) Money market funds c) Certificates of deposit d) Bonds Question 12 1 / 1 point ____________ is a completely inadequate mechanism ____________________ in a modern advanced economy. a) Money; to use as a unit of account b) Barter; for trying to coordinate trades c) Currency; for providing a medium of exchange d) Money; for providing a store of value Question 13 1 / 1 point The money multiplier is equal to the _______________ in the economy divided by the original _________________. a) original quantity of reserves; reserve ratio b) quantity of money; total money c) total money; quantity of money d) reserve ratio; original quantity of reserves Question 14 1 / 1 point Which of the following is omitted in a barter transaction? a) medium of exchange b) trade c) money d) store of value Question 15 1 / 1 point ________________ serves society in three functions: medium of exchange, unit of account, and store of value. a) A double coincidence of wants b) Money c) Cu

Reviews

There are no reviews yet.

Be the first to review “UMUC ECON201 HOMEWORK 4 LATEST 2015”

Your email address will not be published. Required fields are marked *