Currency (paper money plus coins) constitutes about:
A. 24 percent of the U.S. M1 money supply.
B. 45 percent of the U.S. M1 money supply.
C. 51 percent of the U.S. M1 money supply.
D. 55 percent of the U.S. M1 money supply.
B. 45 percent of the U.S. M1 money supply.
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If the Fed sells U.S. government securities,
A) the U.S. Treasury loses some revenue. B) the U.S. Treasury gains some revenue. C) banks' reserves increase. D) the federal funds rate rises. E) None of the above answers is correct.
Burger King is paying $9 an hour to its workers. If the expected inflation rate equals the actual inflation rate and both are 10 percent a year, then to keep the real wage rate constant in a year the money wage rate must
A) fall to $8.10 an hour. B) rise to $9.45 an hour. C) rise to $10.00 an hour. D) rise to $9.90 an hour. E) stay at $9.00 an hour.