Which is not one of the criteria necessary for a commodity to make a suitable medium of exchange?
A. It should be durable.
B. It should be of standardized quality.
C. It should be valuable relative to its weight.
D. It should have intrinsic value.
A central bank can help stop a bank panic by
A. . raising the required reserve ratio.
B. calling in consumer loans
C. acting as a lender of last resort.
D. decreasing income taxes
To offset the effect of households and firms deciding to hold more of their money in checking account deposits and less in currency, the Federal Reserve could
A. raise bank taxes.
B. sell Treasury securities.
C. raise government spending.
D. lower the required reserve ratio.
The three main monetary policy tools used by the Federal Reserve to manage the money supply are
A. interest rates, tax rates, and government spending.
B. tax rates, government purchases, and government transfer payments.
C. open market operations, discount policy, and reserve requirements.
D. open market operations, the exchange rate of the dollar against foreign currencies, and government
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