capital elue of leisure time is a counted as part of nationa

capital elue of leisure time is (a) counted as part of national income (b) counted as part of the personal inconwe (c) added to net personal income (NPI to obtain the gross (GPI) (d) not counted in the U.S. national income accounts 21 In today\'s economy, the value of money is based on (a) what backs (collateralizes) the government says the money is worth (d) a of goods and services the money can buy (c) how much the issuing more valuable its money nation\'s price level; the higher the price level, the 22. Federal Reserve notes are (a) legal tender currency in the US, (b) generally accepted in payment for goods and services (c) fiat money (d) all of these 25. 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 goods and services; this function is known as money\'s (a) unit of account function (b) medium of of money\'s functions is that it enables us to compare the relative value of different 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 nswer questions 26 through 30 based on the balance sheet below. Assume a reserve requirement of 10% against demand deposits Friedman National Bank Liabilities Assets Demand deposits $100,000 $20,000 50,000 Securities 30,000 Total- 100,000 Cash Loans Total $T00,000 26. Friedman National Bank has excess reserves of (a) zero (b) $2,000 (e) $10,000 (d) $20,000 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 (a) 10 times Friedman National\'s excess reserves (b) $1,000,000 (c) 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

Solution

Ans 20)

Value of leasure time is not counted in US national income accounts

Hence option D is correct response

Ans 22)

All of these options are correct Hence option E is correct

Ans 23)

All of these options are correct Hence option E is correct

Ans 24)

Medium of exchange function

Ans 25)

Option C is correct