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# If you got a birthday gift of a \$100 U S savings bond you would have received M1 money

If you got a birthday gift of a \$100 U.S. savings bond, you would have received

a.M1 money

b.M2 money

c.M3 money

d.near money

e.not money

72.              If you gave your friend a gift of a corporate bond, such as a \$100 General Motors bond,

a.M1 money

b.M2 money

c.fiat money

d.near money

e.not money

73.              An asset such as your house is really

a.M1 money

b.M2 money

c.fiat money

d.near money

e.not money

a.M1 money

b.M2 money

c.fiat money

d.near money

e.not money

75.              Suppose you found Eurodollars in a public park and reported it to the police. After 10
days, the police called to say that no one claimed those Eurodollars. They’re now yours.
The police have never seen Eurodollars before and ask: “What are these things?” You tell

a.M1 money

b.M2 money

c.fiat money

d.near money

e.asset money

76.              Money market mutual funds (MMMFs) accounts are

a.M1 money

b.M2 money

c.fiat money

d.near money

e.not money

77.              Which of the following explains the rapid growth of the M2 money supply growth since
the 1960s?

a.inflation

b.the government printed more M2 money than M1 or M3

c.the introduction of money market mutual funds

d.the introduction of money market mutual deposits

e.sluggish stock market performance in the 1970s

78.              According to the quantity theory of money, if an economy produces 5,000 units of
output, its money supply equals \$40,000, and the velocity of money equals one, then the
price level will equal

a.\$0.13

b.\$1.25

c.\$8

d.\$200

e.\$8,000

79.              According to the quantity theory of money, if an economy produces 100 units of output               and has a money supply equal to \$500, then if the money supply doubles while velocity
remains unchanged, the new price level will

a.fall to \$2.50

b.fall to \$5.00

c.increase to \$5.00

d.increase to \$10.00

e.fall to \$1.00

80.              The classical view of the quantity theory of money assumes that the velocity of money

a.is constant

b.will rise if the money supply rises and fall if the money supply falls

c.will rise if the money supply rises, but it will not change if the money supply falls

d.will fall if the money supply rises, and it will rise if the money supply falls

e.will fall if the money supply rises, but it will not change if the money supply falls

Feb 11 2020 View more View Less