Bank reserves can be viewed as:
a. Profitable assets in a bank's portfolio.
b. Taxes on profits.
c. Assets that all banks should have in excess, if they want relatively high profits and relatively low risks.
d. All the above.
.B
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An indexed payment is one
A. whose real value changes with the rate of change in the price level. B. whose nominal value is held constant. C. whose dollar value changes with the rate of change in the price level. D. whose nominal value is equal to its value.
If something is used as a measure of value, then a necessary condition is that it must
a. serve as a yardstick for measuring the value of other goods b. be a precious metal, such as gold or paper money c. be convertible into gold d. be used in barter exchange e. be accepted as payment for any purchase