Which quotation is irrelevant to the claim in paragraph 1 that "people have confidence that the money will hold its value because their government backs it"? "The Mint was charged with producing the nation's specie in copper, silver, and gold. O For the first 50 years or so, U.S. currency consisted almost entirely of coins" (paragraph 13) "Demand notes could be redeemed for silver or gold coins on demand and were legal tender guaranteed by the federal government." (paragraph 14) O "Most nations today back their own currencies as legal tender." (paragraph 15) O "Paper notes often consist of higher values than coins." (paragraph 15)

Which quotation is irrelevant to the claim in paragraph 1 that "people have confidence that the money will hold its value because their government backs it"? "The Mint was charged with producing the nation's specie in copper, silver, and gold. O For the first 50 years or so, U.S. currency consisted almost entirely of coins" (paragraph 13) "Demand notes could be redeemed for silver or gold coins on demand and were legal tender guaranteed by the federal government." (paragraph 14) O "Most nations today back their own currencies as legal tender." (paragraph 15) O "Paper notes often consist of higher values than coins." (paragraph 15)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

The money stock measured as M1 is growing at the rate of 5% per year. If real GDP is growing at 2% per year, and the income velocity of circulation of money is constant, Select one: the economy will achieve noninflationary growth O b. the inflation rate will be around 1%. O c. the inflation rate will be around 5% O d. the inflation rate will be around 3%.
Which of the following is NOT a function of money? O a. A unit of account O b. A store of value O c. An interest-earning asset O d. A medium of exchange
Could you add more information regarding the below statement? "The Federal Reserve System plays a massive role in not only the economy of the united states but alos in the global economy. The US dollar is one of the most popular and well recognized forms of currency all around the world, making it the basis for many financial transactions and trades. This popularity and standardization in regards to the dollar makes it one of if not the most important currency in the world, whose value has implications on nearly every aspect of trade, consumers, and even other countries wellbeing. Because of this, the fed, who has the ability to influence the value of the dollar and the economy, is likely the most important financial institution of the world, because of it's ability to severely impact both positively and negatively the united states economy and the world economy. With the recent inflation, I do think that the fed should take some action to mitigate the risk of any catastrophic…
Please answer ASAP this is a very short question Before the Civil War, _____, not the U.S. government, issued paper money that could be redeemed for _____. A)private banks; silver coins B)private banks; gold C)insurance companies; silver coins D)savings & loans; gold
The neutrality of money revisited a. Fill in the empty spaces after Year 1 in the chart below: b. What is the growth rate of the nominal money supply between years 1 and 2, 2 and 3, and 3 and 4? c. What is the rate of inflation between years 1 and 2, 2 and 3, and 3 and 4? d. What is the change in the real money supply between years 1 and 2, 2 and 3, and 3 and 4? e. What assumption has been made about real output growth if this data describe the medium run?
61.The preferences of households determine the: A)reserve–deposit ratio. B)currency–deposit ratio. C)size of the monetary base. D)loan–deposit ratio. 62.If the monetary base is denoted by B, rr is the ratio of reserves to deposits, and cr is the ratio of currency to deposits, then the money supply is equal to ______ divided by ______ multiplied by B. A)(rr + 1); (rr + cr) B)(cr + 1); (cr + rr) C)(rr + cr); (rr + 1) D)(rr + cr); (cr + 1) 63.The ratio of the money supply to the monetary base is called: A)the currency–deposit ratio. B)the reserve–deposit ratio. C)high-powered money. D)the money multiplier. 64.High-powered money is another name for: A)currency. B)demand deposits. C)the monetary base. D)M2. 65.If the ratio of reserves to deposits (rr) increases, while the ratio of currency to deposits (cr) is constant and the monetary base (B) is constant, then: A)it cannot be determined whether the money…
2. Consider the following data (all values are in billions of dollars): (b) Currency Transactional deposits Bank reserves June 1930 June 1931 June 1932 $ 3.681 3.995 4.959 21.612 19.888 15.490 3.227 3.307 2.829 (a) Calculate the values for each period for the currency-deposit ratio, the ratio of total reserves to deposits, the monetary base, M1, and the money multiplier. Can you explain why the currency-deposit ratio and the ratio of total reserves to deposits moved as they did between 1930 and 1932(Great depression era)?
2. What “backs" the money supply in the United States? What determines the value (domestic purchasing power) of money? How does the purchasing power of money relate to the price level? Who in the United States is responsible for maintaining money's purchasing power? There is ( no, some ) concrete backing to the money supply in the United States. Paper money, which has ( some, no ) intrinsic value, has value only because people are willing to accept it in exchange for goods and services, including their labor services as employees. And people are willing to accept paper as money because they know that everyone else is also willing to do so. If the monetary authorities were issuing new banknotes at a rate far in excess of available output, the acceptability of paper money would (increase, diminish ). People would start to worry about whether the banknotes would be worth much after they received them. Checks are part of the money supply and ( are, are not) legal tender, but people accept…
2. When you discover a $20 bill in your coat pocket that you placed there last winter, you find you were unexpectedly using money as a O medium of exchange. store of value. unit of account. factor of production.
Complete of the following sentences (fill in the blanks): A product that serves both as money and as a commodity is ________________. Some coins and all papers money circulating in the US have face values that exceed the value of the materials from which they are made. Therefore, they are forms of ______________. If the government declares that creditors must accept a form of money as payment for debts, the money becomes _____________. A common unit for measuring the value of every good or service in the economy is knowns a(n) __________________.
1. Explain the differences between commodity money and fiat money. What are the major disadvantages of commodity money?
4. Which of the following characteristics of money is associated with the base good being divisible? a. Unit of account b. Store of value c. Medium of exchange 5. Which of the following characteristics of money is associated with the base good being easily portable? a. Unit of account b. Store of value c. Medium of exchange 6. The Federal Reserve's dual mandate is that monetary policy should accomplish An effective allocation of capital and stable property rights b. A well-capitalized banking system and an empowered democracy c. A stable return on the stock market and reasonable bond yields d. Price stability and full employment а.