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Homework answers / question archive / University of Maryland, University College - ECON MISC Week 4 Attempt 1 1)In macroeconomics, _______describes a situation in which two people each want to exchange some good or service that the other can provide
University of Maryland, University College - ECON MISC
Week 4
Attempt 1
1)In macroeconomics, _______describes a situation in which two people each want to exchange some good or service that the other can provide.
2. Which of the following is a valid criticism of the use of money as a store of value in modern economies?
3. The quantity of money in an economy and the ________________ are inextricably intertwined.
4. The money multiplier is equal to the ______________ in the economy divided by the original _____________.
5. _________________ 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 ________.
6. In modern economies, credit cards are a ___________ because of their wide acceptance as a method of payment for both goods and services.
7. ____________ are a form of financial instrument through which corporations and governments borrow money from financial investors and promise to repay with interest.
8. The market where loans are made to borrowers is called the:
9. If Bill performs plumbing upgrades for Alice in exchange for her incorporating his business, then their ___________will be satisfied.
10. Banks can protect themselves against an unexpectedly high rate of loan defaults and against the risk of _____________ by adopting a strategy that will __________.
11. The market in which loans are bought and sold is called the:
12. The process of banks making loans in financial capital markets is intimately tied to the:
13. ______________ are a form of deposits held in banks that are available by making a cash withdrawal or writing a check.
14 Banks typically come under financial stress because of:
15. In uncertain economic times, ____________serves as a way of preserving economic value that can be spent or consumed in the future.
16. 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.
17. _______are funds that the bank keeps on hand that are not loaned out or invested in bonds.
18. Which of the following would function as a store of value, and also provide a medium of exchange, and unit of account?
19. __________ pool the deposits of many investors together and invest them in a safe way like short-term government bonds.
20. If the central bank increases the amount of reserves banks are required to hold to 20%, then:
21. 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?
22. Lance paid $175,000 for his house in 2003 and sold it for $325,000 in 2006. What function did the house serve during the time Lance owned it?
23. Stealth bank has deposits of $300 million. It holds reserves of $20 million and has purchased government bonds worth $300 million. The bank’s loan, 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 $350 million. It holds reserves of $30 million and government bonds worth $70 million. If the bank sells its loans at market value of $400 million, what will its total assets equal?
25. Stealth bank has deposits of $700 million. It holds reserves of $20 million and has purchased government bonds worth $350 million. The banks loans, if sold at current market value, would be worth $600 million. What is the total value of Stealth bank's assets?
Attempt #2 100%
1. Which of the following would be classified in the M1 category of the money supply?
2. The people in an economy have $10 million in money. There is one bank that all the people deposit their money in and it holds 10% of the deposits as reserves. What is the money multiplier in this economy?
3. If the central bank increases the amount of reserves banks are required to hold 20%, then:
4. Stealth bank holds 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?
6. Stealth bank has deposits of $300 million. It holds reserves of $20 million and has purchased government bonds worth $300 million. The bank's loans, if sold at current market value, would be worth $600 million. What does Stealth bank's net worth equal?
7. __________serves society in three functions: medium of exchange, unit of account, and store of value.
8. In macroeconomics, ______________describes a situation where a bank’s liabilities can be withdrawn in the short-term while assets are being repaid in the long-term.
9. ___________ is a completely inadequate mechanism ____________in a modern advanced economy.
10. 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.
11. In an economy with _____________, money loses some buying power each year, but it remains money.
12. In modern economies, ______________ receive money from savers and provides funds to borrowers.
13. 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.
14. In macroeconomics, a _________ describes the common way in which market values are measured in an economy.
15. If mollusk shells were accepted as a method of payment in modern-day markets, what economic role would they play in the financial system?
16. Why do bank use a T-account?
17. Which of the following is omitted in barter transaction?
18. The market in which loans are bought and sold is called the:
19. Bank typically comes under financial stress because of:
20. _________are funds that the bank keeps on hand that are not loaned out or invested in bonds.
21. __________are a form of financial instrument through which corporations and governments borrow money from financial investors and promise to repay with interest.
22. _____________ The require the depositors 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 ________.
23. The money multiplier is equal to the ____________ in the economy divided by the original __________.
24. The market where loans are made to borrowers is called the:
25. In uncertain economic times, ____________serves as a way of preserving economic value that can be spent or consumed in the future.
Attempt 3:
1. 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?
2. The people in an economy have $10 million in money. There is one bank that all the people deposit their money in and it holds 10% of the deposits as reserves. What is the money multiplier in this economy?
3. _________ service society in three functions: medium of exchange, unit of account, and store of value.
4. Which of the following would function as a store of value, and also provide a medium of exchange, and unit of account?
5. 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.
6. ______________ are a form of deposits held in banks that are available by making a cash withdrawal or writing a check.
7. __________ pool the deposits of many investors together and invest them in a safe way like short-term government bonds.
8. 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.
9. ___________ is a completely inadequate mechanism ____________in a modern advanced economy.
10. Which of the following is a valid criticism of the use of money as a store of value in modern economies?
11. 10. 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.
12. Why do bank use a T-account?
13. The process of banks making loans in financial capital markets is intimately tied to the:
14. In macroeconomics, a _________ describes the common way in which market values are measured in an economy.
15. In macroeconomics, ______________describes a situation where a bank’s liabilities can be withdrawn in the short-term while assets are being repaid in the long-term.
16. Which of the following is omitted in barter transaction?
17. Banks can protect themselves against an unexpectedly high rate of loan defaults and against the risk of _____________ by adopting a strategy that will __________.
18. In modern economies, credit cards are a ___________ because of their wide acceptance as a method of payment for both goods and services.
19. If mollusk shells were accepted as a method of payment in modern-day markets, what economic role would they play in the financial system?
20. In modern economies, ______________ receive money from savers and provides funds to borrowers.
21. If Bill performs plumbing upgrades for Alice in exchange for her incorporating his business, then their ___________will be satisfied.
22. 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?
23. Stealth bank has deposits of $700 million. It holds reserves of $20 million and has purchased government bonds worth $350 million. The banks loans, if sold at current market value, would be worth $600 million. What is the total value of Stealth bank's assets?
24. Stealth bank holds 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. With respect to measuring the money supply, which of the following terms describes a checking account?
