The transactions demand for money is related to money functioning as a

A. standard of deferred payment.
B. measure of value.
C. store of value.
D. medium of exchange.

D. medium of exchange.

Economics

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Suppose that from a new checkable deposit, First National Bank holds eight million dollars on deposit with the Federal Reserve, nine million dollars in excess reserves, and faces a required reserve ratio of ten percent

Given this information, we can say First National Bank has ________ million dollars in required reserves. A) one B) two C) nine D) ten

Economics

Assume that the central bank increases the reserve requirement. If the nation has highly mobile international capital markets and a flexible exchange rate system, what happens to the quantity of real loanable funds per time period and the nominal value of the domestic currency in the context of the Three-Sector-Model?

a. The quantity of real loanable funds per time period rises, and nominal value of the domestic currency falls. b. There is not enough information to determine what happens to these two macroeconomic variables. c. The quantity of real loanable funds per time period rises, and nominal value of the domestic currency rises. d. The quantity of real loanable funds per time period rises, and nominal value of the domestic currency remains the same. e. The quantity of real loanable funds per time period falls, and nominal value of the domestic currency rises.

Economics