aye, 915M Wrap-Up Quiz 7 Due No due date Points 12 Questions 12 Available Mar 19 at 2:50pm - Mar 19 at 3:25pm 35 minutes Instructions This is your Wrap-up Quiz 7! The quiz consists of 12 questions. Good luck! Attempt History Attempt Time LATEST Attempt 1 10 minutes 4 Correct answers are hidden. Score for this quiz: 12 out of 12 Submitted Mar 19 at 3:15pm This attempt took 10 minutes. Question 1 \Wrap-Up Quiz 7: Principles of Economis-T122PWB-2 Time Limit 15 Minutes Score 12 out of 12 111 pts One plausible explanation for the large amount of U.S. curreney outstanding is that many dollars are held abroad, Tre Question 2 hitpsllearn ko.edu.vnlcourses!12lquizzes/585 1/4 ptssit9722, 315 PM \Wrap-Up Quiz 7: Principles of Economics-T122PWB-2 ‘When the Soviet Union began breaking up in the late 1980s, cigarettes began replacing the ruble as the medium of exchange even though the ruble was legal tender. The cigarettes provide an example of commodity money. Tre False Question 3 1/1 pts An increase in money demand would create a surplus of money at the original value of money. True False Question 4 1/1 pts If inflation is higher than expected, then lenders receive interest payments whose real values are less than they expected. Tre False Question 5 1/1 pts Table 29-1, The information in the table pertains to an imaginary economy, hitpsllearn ko.edu.vnlcourses!12lquizzes/585 26sit9722, 315 PM \Wrap-Up Quiz 7: Principles of Economics-T122PWB-2 Asset Amount Small time deposits $750 billion Large time deposits $1,500 billion Demand deposits $480 billion Other checkable deposits $350 billion Savings deposits $4,700 billion Traveler's checks S15 billion Money market mutual finds $910 billion Curreney $1,070 billion Minor categories of M2 $40 billion Refer to Table 29-1, What is the value of M1 in billions of dollars? $1,915 billion Correct Question 6 1/1 pts Table 29-5. The First Bank of Roswell bilities 's $200,000 Assets Reserves $30,000 Epo: ans 170,000 Refer to Table 29-5. If the bank faces a reserve requirement of 20 percent, then it just meets its reserve requiremen hitpsllearn ko.edu.vnlcourees/12lquizzes/585 a63119722, 915 PM \Wrap-Up Quiz 7: Principles of Economics-T122PWB-2 reeds $20,000 more reserves to meet its reserve requirements, needs $10,000 more reserves to meet its reserve requirements Correct hhas $10,000 of excess reserves. Question 7 111 pts Ifa bank that desires to hold no excess rescrves and has just enough reserves to meet the required reserve ratio of 15 percent receives a deposit of $600, it has a $510 increase in excess reserves and a $90 increase in required reserves. Correct {$600 increase in excess reserves and no increase in required reserves, ‘$600 increase in required reserves and no increase in excess reserves, '$90 increase in excess reserves and a $510 increase in required reserves. Question 8 1/1 pts To decrease the money supply, the Fed ean buy government bonds or decrease the discount rate. sell government bonds or increase the discount rate Correct hitpsllearn ko.edu.vnlcourees/12lquizzes/585 4063119722, 915 PM \Wrap-Up Quiz 7: Principles of Economis-T122PWB-2 sell government bonds or decrease the discount rate. buy government bonds or increase the discount rate. Question 9 1/1 pts If the price level increased from 120 to 130, then what was the inflation rate? 7.7 percent, 1.1 percent. 10.0 percent. 8.3 percent, Correct Question 10 1/1 pts In 1975 tuition at Wattsomata University was $2,500 and the consumer price index was 80. In 2011 tuition was $12,000 and the price index was 320. Which of the following is correct? ‘Nominal tuition was higher in 1975, real tuition was higher in 2011 ‘Nominal and real tuition were both higher in 2011. Correct ‘Nominal and real tuition were both higher in 1975. ‘Nominal tuition was higher in 2011, real tuition was higher in 1975. hitpsllearn klo.edu.vnlcourees/12iquizzes/585 563119722, 915 PM \Wrap-Up Quiz 7: Principles of Economics-T122PWB-2 Question 11 1/1 pts ‘When the money market is drawn with the value of money on the vertical axis, a decrease in the money supply leads people to spend moreso the value ofa dollar rises, spend less o the value ofa dolar falls spend more so the value ofa dollar falls spend less so the value ofa dollar rises. Correct Question 12 1/1 pts ‘You bought some shares of stock and, over the next year, the price per share increased by 5 percent, as did the price level. Before taxes, you experienced ‘anominal gain, but no real gain, and you paid taxes on the nominal gain, Correct both a nominal gain and a real gain, and you paid taxes on the nominal gain, ‘a nominal gain, but no real gain, and you paid no taxes on the transaction. both a nominal gain and a real gain, and you paid taxes only on the real gain, Quiz Score: 12 out of 12 hitpsllearn ko.edu.vnlcourses/"12lquizzes/585 ae