WRTG 393 Homework 4

BUY HERE: WRTG 393 Homework 4 (UMUC) – Homeworkmade

WRTG 393 Homework 4

Question 1

1 / 1 point

 _______________________ 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 2

1 / 1 point

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

Question 3

1 / 1 point

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

Question 4

1 / 1 point

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

Question 5

1 / 1 point

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

Question 6

1 / 1 point

 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.

Question 7

1 / 1 point

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

Question 8

1 / 1 point

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

Question 9

1 / 1 point

Which of the following is omitted in a barter transaction?

Question 10

1 / 1 point

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

Question 11

1 / 1 point

 _________________________ are a form of deposits held in banks that are available by making a cash withdrawal or writing a check.

Question 12

0 / 1 point

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

Question 13

1 / 1 point

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

Question options:

Question 14

1 / 1 point

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

Question options:

Question 15

1 / 1 point

 Banks typically come under financial stress because of:

Question options:

Question 16

1 / 1 point

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

Question options:

Question 17

1 / 1 point

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 options:

Question 18

0 / 1 point

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

Question options:

Question 19

1 / 1 point

 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?

Question options

Question 20

1 / 1 point

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?

Question options:

Question 21

0 / 1 point

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 options:

Question 22

0 / 1 point

 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?

Question options:

Question 23

1 / 1 point

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?

Question options:

Question 24

1 / 1 point

Which of the following would be classified in the M1 category of the money supply?

Question options:

Question 25

1 / 1 point

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

Question options:

Question 26

1 / 1 point

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

Question options: