If you shop for a car online and compare car prices across ...

[Sufayan.ah]

If you shop for a car online and compare car prices across dealerships, money is functioning as a
 
  A) means of payment.
  B) medium of exchange.
  C) barter mechanism.
  D) store of value.
  E) unit of account.

Question 2

When the Fed buys a 10,000 bond from a bond dealer
 
  A) reserves of the banking system remain unchanged, but the money supply increases by 10,000.
  B) reserves of the banking system increase by 10,000, but the money supply will only be able to increase by something less than this amount.
  C) reserves of the banking system increase by 10,000, but the money supply can increase by more than 10,000.
  D) reserves of the banking system remain unchanged, but the money supply decreases by 10,000.

[k2629]

Answer to Question 1

E

Answer to Question 2

C

[Sufayan.ah]

Excellent

[cici]

TYSM