"Even though we can convert them into money, deposits at banks are not money." Is the previous statement correct or not?
What will be an ideal response?
The statement is incorrect. Some deposits at banks, such as checking account deposits, are a means of payment and fulfill all the functions of money. These deposits are therefore money.
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A firm in monopolistic competition maximizes its profit by ________
A. differentiating its good and producing the quantity at which price equals marginal revenue B. producing the quantity at which marginal revenue equals marginal cost and then adding a markup C. raising its price and producing so that it always has excess capacity D. producing the quantity at which marginal cost equals marginal reve-nue and charging the highest price at which it can sell that quantity
Under what circumstances would the GDP deflator be less than 100 after the base year?
A) The GDP deflator will be less than 100 if there has been deflation relative to the base year. B) There are no circumstances under which the GDP deflator could be less than 100. C) The GDP deflator will be less than 100 if there has been inflation relative to the base year. D) The GDP deflator will be less than 100 if there has been inflation of less than 2% per year relative to the base year.