APU BUSN602 Midterm Exam/Verified Answer/All correct/Score 100%

APU BUSN602 Midterm Exam

Question

Question 1

Which of the following are not included in M1?

A. negotiable orders of withdrawal

B. automatic transfer service accounts

C. money market deposit accounts

D. credit union share draft accounts

Question 2

If the stated or nominal interest rate is 10 percent and the inflation rate is 5 percent, the net

or differential compounding rate would be ________ percent

A. ten

B. five

C. two

D. fifteen

Question 3

______________ occurs during economic expansions when demand for goods and services is

greater than supply.

A. Administrative inflation

B. Speculative inflation

C. Cost-push inflation

D. Demand-pull inflation

Question 4

Inflation caused by an increase in the money supply is called:

A.demand-pull inflation