Homework answers / question archive / University of Maryland, University College - ECONOMICS 201 1) Which of the following is a valid criticism of the use of money as a store of value in modern economies?   2- are a form of financial instrument through which corporations and governments borrow money from financial investors and promise to repay 3- In modern economies, _____________________ receive money from savers and provide funds to borrowers

University of Maryland, University College - ECONOMICS 201 1) Which of the following is a valid criticism of the use of money as a store of value in modern economies?   2- are a form of financial instrument through which corporations and governments borrow money from financial investors and promise to repay 3- In modern economies, _____________________ receive money from savers and provide funds to borrowers

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University of Maryland, University College - ECONOMICS 201

1) Which of the following is a valid criticism of the use of money as a store of value in modern economies?

2- are a form of financial instrument through which corporations and governments borrow money from financial investors and promise to repay

3- In modern economies, _____________________ receive money from savers and provide funds to borrowers. 

4- Why do banks use a T-account? the T-account separates assets on the left

5- 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

6-  The money multiplier is equal to the _______________ in the economy divided by the original _________________.

7- Which of the following is omitted in a barter transaction?

8-  __________________ pool the deposits of many investors together and invest them in a safe way like short-term government bonds.

9- The quantity of money in an economy and the _____________________ are inextricably intertwined.

10- The market where loans are made to borrowers is called the: 

11- If Bill performs plumbing upgrades for Alice in exchange for her incorporating his business, then their _________________________ will be satisfied.

12- In macroeconomics, ___________________________ describes a situation in which two people each want to exchange some good or service that the other can provide.

13-  ____________ is a completely inadequate mechanism ____________________ in a modern advanced economy.

14-  Antonio tries to limit his risk of overexposure to debt by using a ________________ to store a certain amount of value that he then uses to make purchases.

15- ________________ serves society in three functions: medium of exchange, unit of account, and store of value.

16- The process of banks making loans in financial capital markets is intimately tied to the: 

 17- In modern economies, credit cards are a _________________ because of their wide acceptance as a method of payment for both goods and services.

18-  If mollusk shells were accepted as a method of payment in modern-day markets, what economic role would they play in the financial system?

19- The market in which loans are bought and sold is called the: 

20-  In an economy with _______________, money loses some buying power each year, but it remains money.

 

21- Banks can protect themselves against an unexpectedly high rate of loan defaults and against the risk of ____________________ by adopting a strategy that will ______________.

22- With respect to measuring the money supply, which of the following terms describes a checking account?

 

23- Stealth bank has deposits of $700 million. It holds reserves of $20 million and has purchased government bonds worth $350 million. The bank's loans, if sold at current market value, would be worth $600 million. What does Stealth bank’s net worth equal?

24- Stealth bank has deposits of $600 million. It holds reserves of $30 million and government bonds worth $80 million. If the bank sells its loans at market value of $400 million, what will its total assets equal?

 

25- The people in an economy have $10 million in money. There is only one bank that all the people deposit their money in and it holds 5% of the deposits as reserves. What is the money multiplier in this economy?