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6.A 7.B 8.D 9.C 10.A 11.C 12.B 13.A

ti. It]. PCP? PCP? All of the following are necessary criteria for a commodity to inction as money EXCEPT it must deteriorate quickly. it must be divisible. it must be ey to carry. it must be widely accepted. Ranking assets from most liquid to least liquid, the correct order is savings bonds; house; currency. currency; savings bonds; house. currency; house; savings bonds. house; savings bonds; currency. If the price level doubles, the value of money A. doubles. B. C. more than doubles, due to scale economies. rises but does not double. due to diminishing returns. D. falls by St] percent. To claim that a lottery winner who is to receive $2 million per year for twenty years has won $40 million ignores the process of A. face value. B. C. par value. discounting the future. D. coupon. PCP? Which of the following is included in both M1 and M2? currency savings deposits small-denomination time deposits money market deposit accounts 11. If wealth decreases, the demand for stocks and that of long-term bonds everything else held constant. A. increases; increases B. increases; decreases C. decreases; decreases D. decreases; increases 12. Higher government deficits the supply of bonds and shift the supply curve to the , everything else held constant. A. increase; left B. increase; right C. decrease; left D. decrease; right 13. The bond demand curve is sloping, indicating a(n) relationship between the price and quantity demanded of bonds, everything else equal. A. downward; inverse B. downward; direct C. upward; inverse