Multiple Choice Identify the choice that best completes the statement or answers the question. 1. Fiat money is a. backed by gold or silver. b. the principal type of money in use today and has no intrinsic value. C. commodity money and has intrinsic value. d. receipts created in international trade that are used as a medium of exchange. 2. Which of the following is included in MI? a. currency in circulation b . coins in circulation C. personal checkbook balances and travelers checks d. All of the above 3. In 1977, Congress amended the Federal Reserve Act and created a dual mandate for the Federal Reserve. Which of the following is the dual mandate in existence today? a. maintain stable prices and attain full employment b. maintain stable prices and attain zero unemployment C. attain deflationary prices and attain full employment d. attain deflationary prices and attain zero unemployment Table 4-1. Bank of Springfield Assets Liabilities Reserves $50,000 Deposits $250,000 Loans 200,000 4. Refer to Table 4-1. If the Fed requires a reserve ratio of 10 percent on all deposits, then what quantity of excess reserves does the Bank of Springfield now hold? a. $1,000 b. $2,500 C. $25,000 d. $50,000 5. During a recession the economy experiences a. rising employment and rising income/real gap. b. rising employment and falling income/real gap. C. rising unemployment and rising income/real gdp. d. rising unemployment and falling income/real gap