The opportunity cost of holding cash in your wallet
A. tends to increase as interest rates decrease.
B. is the foregone interest that could have been earned on other assets.
C. is zero.
D. None of the choices are correct.
B. is the foregone interest that could have been earned on other assets.
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Which of the following is an example of money functioning as a unit of account?
A) Bank of America charging 7 percent on an auto loan. B) Pepsi charging $1 for a can of soda. C) eBay using PayPal as a method of payment. D) Your writing a check at Target to pay for new clothes.
Bank examiners are _____.
(A) More interested in regulating the overall money supply than the net worth of member banks. (B) Required to schedule with banks when they plan to visit. (C) Authorized to force banks to sell off investments that they consider excessively risky. (D) Only permitted to label a bank as a "problem bank" if the institution has excessive risks.