Which of the following is true?
a. Checking account deposits and time deposits constitute assets of banks
b. M2 includes M1, plus saving accounts, time deposits (except for some large-denomination certificates of deposits), and money market mutual funds.
c. reserves times the required reserve ratio equals deposits.
d. Money is destroyed when banks make loans.
b
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Trilemma refers to policy conflicts among:
A) fixed exchange rate, monetary autonomy, and free capital mobility goals. B) floating exchange rate, monetary autonomy, and free capital mobility goals. C) fixed exchange rate, monetary autonomy, and floating exchange rate goals. D) floating exchange rate, fiscal autonomy, and monetary autonomy goals.
Max has allocated $100 toward meats for his barbecue. His budget line and an indifference map are shown in the above figure. What happens if Max's mother gives him 30 pounds of burger?
A) Max would have preferred receiving the dollar-value of the burger. B) Max is indifferent between this gift and the dollar-value of the burger. C) Max prefers this gift to the dollar-value of the burger. D) None of the above.