Which of the following is NOT included using the transactions approach to measuring the money supply (M1)?

The Department of Education noticed that for loans granted to students without any strings, the average grade point average of the students decreases dramatically over time. Which one of the following can it use as a solution?

a. Renew the loans only if the students pass their courses b. Renew the loans regardless of students' passing c. Never renew the loans d. Shut down the Department of Education

Which of the following is true about a risk-averse individual facing a full menu of actuarily fair insurance contracts to choose from?

A. The individual will "over-insure" if consumption is more meaningful in the good state. B. The individual will "over-insure" if consumption is more meaningful in the bad state. C. The individual will fully insure when tastes are state-independent. D. (a) and (b) are true. E. (a) and (c) are true. F. (b) and (c) are true. G. All of the above. H. None of the above.