Which of the following is true of a certificate of deposit?

Which of the following is true of a certificate of deposit?
 a. They are accounts at savings and loan associations.
  b. The funds in this deposit account are not given out in the form of loans.
  c. The funds in this account must be deposited for a specified period of time.
  d. The value of the deposit should be more than 100,000.
  e. The deposits earn very little or no interest.

Question 2

Markets tend toward equilibrium and, as a result, will tend to eliminate shortages and surpluses. Why?

Question 3

If government purchases exceed tax revenue, there is a budget deficit.
 a. True
  b. False
  Indicate whether the statement is true or false

Question 4

The M2 measure of money supply includes all of the following, except:
 a. demand deposits.
  b. U.S. government securities.
  c. savings deposits.
  d. money market deposits.
  e. certificates of deposit.

Question 5

Explain how both sales and long lines prior to store openings are characteristic of markets in disequilibrium.

Question 6

In the short run, fiscal policy has its primary affect on aggregate demand but in the long run fiscal policy can influence saving, investment and economic growth.
 a. True
  b. False
  Indicate whether the statement is true or false

Question 7

_____ are accounts at the U.S. commercial banks that combine an interest-bearing savings account with a noninterest bearing checking account.
 a. Automatic transfer system accounts
  b. Negotiable orders of withdrawal
  c. Eurodollar deposits
  d. Certificates of deposit
  e. Credit union share draft accounts

Question 8

The face value of a ticket to the Super Bowl was approximately 1,200 in 2011 . The game is very popular and there are a number of fans who are not able to get tickets to this game. At the same time, many fans claim that prices are too high and that the NFL should lower the face value of the ticket prices. Would a decrease in ticket prices move the market towards equilibrium? Would it eliminate the shortage of tickets? Why or why not?

Question 9

Fiscal policy is the use of government purchases and taxes to alter RGDP and the price level.
 a. True
  b. False
  Indicate whether the statement is true or false

Question 10

Which of the following is true of other checkable deposits?
 a. They are checking account deposits at commercial banks and do not pay any interest.
  b. They are accounts at financial institutions that pay interest and give the depositor check-writing privileges.
  c. They comprise solely of demand deposits at mutual savings banks.
  d. They are not included in the M1 money supply.
  e. They are savings deposits that earn interest at savings and loan associations.

Question 11

Beach resorts raise their prices during the summer months and yet more people book rooms at those times. Is this a violation of the law of demand?

Question 12

Explain the effects of the following actions on equilibrium income. 1 . Government purchases rise by 20 billion. 2 . Taxes fall by 20 billion. Assume that the marginal propensity to consume is 0.8.