20. The value of leisure time is (a) counted as part of national income (b) counted as part of the capital consumption allowance (c) added to net personal income (NPI) to obtain the gross personal income (GPI) (d) not counted in the U.S. national income accounts the 1. In today\'s economy, the value of money (b) government says the money is worth (d) a nation\'s price level; the higher the price level, the money is based on (a) what backs (collateralizes) the amount of goods and services the money can buy (e) how much the issuing more valuable its money 22. Federal Reserve notes are (a) legal tender currency in the U.S. (b) generally accepted in payment for goods and services (e) fiat money (d) all of these 23. For a commodity money, like gold, to function effectively as \"money\" it must be (a) generally accepted (b) easily measurable (c) divisible into relatively small units (d) all of the above -24. One of money\'s functions is that it enables us to compare the relative value of different goods and services; this function is known as money\'s (a) unit of account function (b) medium of exchange function (c) store of value function (d) general acceptability function _ 25. If the price level doubles, the real value of legal tender money (a) doubles (b) remains the sine (c) falls by 50% (dincreases by 50% above its nominal value Answer questions 26 through 30 based on the balance sheet below. Assume a reserve requirement of 10% against demand deposits Friedman National Bank Liabilities Demand deposits $100,000 Assets $20,000 50,000 Securities 30,000 Total S100,000 Cash Loans Total $100,000 26. Friedman National Bank has excess reserves of (a) zero (b) $2,000 (e) $10,000 (d) s20,000 27. If the Bank wanted to expand its lending beyond the $50,000 already on its books, the maximum additional loan that the Bank could make would be (a) $10,000 (b) $20,000 (c) $50,000 (d) 10 times its excess reserves 28. Based on the Bank\'s excess reserves, the banking system would be able to create new money equal to (e) 10 times Friedman National\'s excess rserves (tb) 51,000,000 co) the reciprocal of the reserve requirement (d) all of the above 29. If the reserve requirement was increased to 20% against demand deposits (a) Friedman National would have no excess reserves (b) the coefficient of money expansion for the banking system would be reduced (c) potential borrowers would not be able to obtain loans from Friedman National Bank (d) all of the above
Answer 20: The value of leisure time is not included in the us national income accounts. As per national income accounts the economic activity related to production of goods and services has been taken profit , wages and salaries taken into an account.
Answer 21: In today economy the value of money is that how much the government has worth it .It shows the worth of Fiat money in an economic.
Answer 22: Federal reserve notes are legal tender currency notes. They are issued by US Federal government in order to grab public as well as private debt payment.
Answer 23 : For an commodity such as gold, the effectively value of money is that it is generally acceptable by all as well as easily measurable. It is divisble by all in smaller units.
Answer 25: If price level doubles , the value of legal tender money falls by 50%. As there is decreases in the value of money as price rises.
Answer 26: Friedman bank has excess reserve = Present reserve - Required reserve
= $30,000-$10,000=$20,000
Answer 27 :$20,000
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