In terms of the demand for money the interest rate represents ?

A. The rate at which current consumption can be exchanged for future consumption
B. The price of borrowing money
C. The opportunity cost of holding money
D. The return on money that is saved for the future

The chain of events that results from an expansionary monetary policy is ?

A. Aggregate output increases the demand for money increase the interest rate increase planned investment
B. Money supply increases the interest rate decrease planned investment increases aggregate output increases and money demand increase
C. Money supply increases the interest rate increase planned investment increases aggregate output increases and money demand increases
D. Money demand increases the interest rate decreases planned investment increases aggregate output increases and money demand increases

An increase in the money supply aimed at increasing aggregate output is referred to as ?

A. Contractionary fiscal policy
B. Expansionary monetary policy
C. Contractionary monetary policy
D. Expansionary fiscal policy

The interest rate ?

A. Is determined in the goods market and influences the level of planned investment and thus the money market
B. Is determined in the money market and influences the level of planned investment and thus the goods market
C. Is determined in the goods market and has no influences on the money market
D. Is determined in the money market and has no influence on the goods market

The main reason that people hold money to buy things is referred to as the ?

A. Profit motive
B. Precautionary motive
C. Transactions motive
D. Speculation motive

The opportunity cost of holding money is determined by ?

A. The discount rates
B. The level of aggregate output
C. The interest rates
D. The inflation rates

Which of the following events will lead to an increase in the demand for money ?

A. An increase in the interest rate
B. An increase in the level of aggregate output
C. A decrease in the price level
D. An increase in the supply of money

Money that a government has required has required to be accepted in settlement of debts is ?

A. Barter money
B. Currency value
C. Legal tender
D. Commodity money

A checking deposit in a bank in considered _________ of that bank?

A. An asset
B. Capital
C. Net worth
D. A liability

The difference between a bank’s actual reserves and its required reserves is its?

A. Required reserve ratio
B. Profit margin
C. Excess reserves
D. Net worth