If the reserve ratio is lowered, some required reserves are turnedinto excess re
ID: 1254006 • Letter: I
Question
If the reserve ratio is lowered, some required reserves are turnedinto excess reserves.a. True
b. False
If the monetary authority wishesto follow a tight money policy, it would sell government bonds inthe open market.
a. True
b. False
When the price of a product isstated in terms of dollars and cents, then money is functioning asa unit of account.
a. True
b. False
The currency component of M1includes both coins and paper money
a. True
b. False
If money is to have a fairlystable value, its supply must be limited relative to the demand forit.
a. True
b. False
There is a transaction demandfor money because households and business firms use money as astore of wealth.
a. True
b. False
If the monetary authority wishesto follow a tight money policy, it would sell government bonds inthe open market.
a. True
b. False
When the price of a product isstated in terms of dollars and cents, then money is functioning asa unit of account.
a. True
b. False
The currency component of M1includes both coins and paper money
a. True
b. False
If money is to have a fairlystable value, its supply must be limited relative to the demand forit.
a. True
b. False
There is a transaction demandfor money because households and business firms use money as astore of wealth.
a. True
b. False