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TRIDENT ECO202 SLP 3/ ECO202 SLP 3 QUIZQuestionQuestion 1 (2 points)Which of the following is a function of money?Question 1 options:a) Medium of exchangeb) Unit of accountc) Store of valued) All of the aboveQuestion 2 (2 points)The double coincidence of wants is a problem with:Question 2 options:a) Barterb) Moneyc) Financial internediariesd) None of the aboveQuestion 3 (2 points)Which of the following is not a component of M1:Question 3 options:a) Checkable depositsb) Checksc) Currency held by the publicd) Demand depositsQuestion 4 (2 points)Assume that the bank holds no excess reserves and that the required reserve ratio equals 10% of deposits. If a customer deposits $5,000, what would be the total increase in checking account balances throughout all banks?Question 4 options:a) $500,000b) $500c) $5,000d) $50,000Question 5 (2 points)Financial intermediaries are:Question 5 options:a) The uses of the funds of a bank, including loans and reserves.b) Financial statements that contain the sources of funds (liabilities) as well as the uses for the funds (assets).c) Banks that bring savers and investors together.d) Sources of funds for which the bank is responsible, including deposits. Your bank owes you the value of your checking account.Question 6 (2 points)What are open market operations?Question 6 options:a) The Fed’s buying and selling of stockb) The Fed’s buying and selling of government securitiesc) The Fed’s buying and selling of goods and servicesd) All of the aboveQuestion 7 (2 points)The uses of the funds of a bank, including loans and reserves describe:Question 7 options:a) Assetsb) Financial intermediariesc) Liabilitiesd) A bank’s balance sheetQuestion 8 (2 points)When one individual writes a check to another and the other person deposits the check in the bank then the:Question 8 options:a) money supply increases.b) money supply decreases.c) money supply does not change.d) None of the aboveQuestion 9 (2 points)Which of the following are liabilities for a bank?Question 9 options:a) Reservesb) Loansc) Depositsd) None of the aboveQuestion 10 (2 points)Suppose Johnny deposits $1,000 in a bank and the reserve ratio is 20% of deposits, which of the following would occur?Question 10 options:a) The bank can loan $1,000 to another customer.b) The bank can loan $800 to another customer.c) The bank can loan $200 to another customer.d) The bank has to keep all of Johnny’s deposit in the bank.Question 11 (2 points)Lower reserve requirements allow banks to lend a lower proportion of deposits.Question 11 options:a) Trueb) FalseQuestion 12 (2 points)M2 is larger than M1.Question 12 options:a) Trueb) FalseQuestion 13 (2 points)Money holds its value during times of inflation, making it a perfect store of value.Question 13 options:a) Trueb) FalseQuestion 14 (2 points)The Discount rate is the interest rate at which banks can borrow reserves from the Fed.Question 14 options:a) Trueb) FalseQuestion 15 (2 points)The net worth of a bank is assets minus liabilities.Question 15 options:a) Trueb) False . TODAY AND GET AN AMAZING DISCOUNT The post Function of money appeared first on Term Paper Tutors.”Do you need a similar assignment done for you from scratch? We have qualified writers to help you with a guaranteed plagiarism-free A+ quality paper.
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