1.Which of the following increases the quantity of money?
a.an individual's purchase of a bond from the Fed
b.an individual's cash withdrawal from a bank
c.an increase in the required reserve ratio
d.a decrease in the required reserve ratio
2.Which of the following decreases the demand for nominal money
a.a decrease in the price level
b.a decrease in the nominal interest rate
c.an increase in the cost of using automatic teller machines
d.an increase in real GDP
3.The opportunity cost of holding money refers to
a.the pleasure that would have been received if the money balances had been used to buy a good or service.
b.the price level.
c.the interest that could have been earned if the money balances had been changed into an interest-bearing asset.
d.the service fees charged to withdraw currency from an ATM.
2006-07-24
11:12:08
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1 answers
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