You are watching: Refer to the given market-for-money diagrams. the asset demand for money is shown by:

Money functions as:A.a save of value.
B.a unit of account.
C.a medium of exreadjust.
D.all of the over.
2.The major component of the money supply (M1) is:A.gold certificates.
B.checkable deposits.
C.paper money in circulation.
3.Which of the following is correct?A.The asset demand also for money is downsloping because the possibility expense of holding money declines as the interest rate rises.
B.The ascollection demand for money is downsloping bereason the possibility cost of holding money rises as the interemainder rate rises.
C.The transactions demand also for money is downsloping because the opportunity cost of holding money varies inversely through the interest rate.
D.The asset demand for money is downsloping bereason bond prices and also the interemainder price are straight associated.
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Refer to the over diagram of the money market. The downward slope of the money demand also curve D*B m deserve to finest be described in terms of the:
A.transactions demand for money.
B.direct or positive connection in between bond prices and also interemainder prices.
C.asset demand for money.
D.wide range or real-balances effect.
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Refer to the above diagram of the money sector. The vertical money supply curve S*B m reflects the truth that:
A.bond prices and interemainder rates are inversely related.
B.the stock of money is figured out by the Federal Reserve System and also does not readjust once the interest rate transforms.
C.the Depository Institutions Deregulation and also Monetary Control Act of 1980 has rerelocated interemainder rate ceilings applied on banks and also thrifts.
D.lower interemainder prices lead to lower opportunity costs of giving money.
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Refer to the above diagram of the money industry. The equilibrium interest rate is:
A.i*B 1.
B.i*B 2.
C.i*B 3.
D.not determinable without even more indevelopment.
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Refer to the above diagram of the money market. Other points equal, the money demand curve in the diagram would certainly transition leftward if:
A.the ascollection demand also for money boosted.
B.the transactions demand for money raised.
C.nominal GDP decreased.
D.the all at once price level rose.
8.In the UNITED STATE economy the money supply is managed by the:A.President.
C.Federal Reserve System.
D.Senate Committee on Banking and also Finance.
9.The group that sets the Federal Reserve Equipment plan on buying and offering federal government securities (bills, notes, and bonds) is the:A.Federal Advisory Council.
B.Consumer Advisory Council.
C.Council of Economic Advisers.
D.Federal Open Market Committee (FOMC).
10.The seven members of the Board of Governors of the Federal Reserve System are:A.appointed by the President with the confirmation of the Senate.
B.elected by Congress from a slate of nominees offered by the President.
C.appointed by the Senate Finance Committee.
D.appointed by the pcitizens of the twelve Federal Reserve Banks.

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