1) The ratio of debt to equity in the United States is about Select one: a. 2. b. 2.5. c. 3. d….

1) The ratio of debt to equity in the United States is about

Select one:

a. 2.

b. 2.5.

c. 3.

d. 3.5.

2) Which of the following will be included in the financial system of a country?

Select one:

a. Labor Unions

b. Banks

c. Factor markets

d. Markets for raw materials

3) Credit cards are

Select one:

a. not counted as money because they represent borrowings and not payments.

b. counted as part of M1.

c. the same as stored-value cards.

d. counted as part of M2, but not M1.

4) If money is a legal tender, it implies that a must accept in the repayment of debts, by law.

Select one:

a. lender; only non-monetary payments

b. borrower; money

c. borrower; only non-monetary payments

d. lender; money

5) The reason why people are putting more funds in checking and savings account rather than in time deposits is that

Select one:

a. checking and savings account accept fiat money, while time deposits do not.

b. long-term interest rates have declined in recent years, relative to short term interest rates.

c. liquidity of money held in checking and savings accounts is less than that of money held in time deposits.

d. only a few banks accept time deposits, while most banks accept checking and savings accounts.