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University of Maryland - ECON 201 Chapter 14 Random Question1)_pool the deposits of many investors together and invest them in a safe way like short-term government bonds

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University of Maryland - ECON 201

Chapter 14 Random

Question1)_pool the deposits of many investors together and invest them in a safe way like short-term government bonds.

 

 

 

Question 2

 

 _______________________ that require the depositor to commit to leaving their funds in the bank for a certain period of time, in exchange for a higher rate of interest are also called ________________.

Question 3

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

Question 4

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.

 

Question 5

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

Question 6

 

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

Question 7

Which of the following is omitted in a barter transaction?

Question 8

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

Question 9

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

Question 10

 In uncertain economic times, ____________________ serves as a way of preserving economic value that can be spent or consumed in the future.

Question 11

 _____________ are a form of financial instrument through which corporations and governments borrow money from financial investors and promise to repay with interest.

Question 12

 In macroeconomics, a _______________ describes the common way in which market values are measured in an economy.

Question 13

 

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

Question 14

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

Question 15

Why do banks use a T-account?

Question 16

Which of the following would function as a store of value, and also provide a medium of exchange, and unit of account?

Question 17

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

Question 18

 ___________are funds that the bank keeps on hand that are not loaned out or invested in bonds.

Question 19

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

Question 20

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

 

Question 21

 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.

Chapter 14 money

 

Question 22

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

 

Chapter 14 Bank balance sheet

 

Question 23

Stealth bank holds deposits of $600 million. It holds reserves of $30 million and government bonds worth $80 million. The current market value of the bank's loans is $400 million. What is the value of the bank’s total liabilities?

Question 24

 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?

Chapter 14 Money multiplier

 

Question 25

If the central bank increases the amount of reserves banks are required to hold to 20%, then: