1 holding money for the speculative motive is holding cash

Question

1. Holding money for the speculative motive is holding cash because bond prices are falling.

• True
• False

2. If deposits in Bank A, total $430 million and the required reserve ratio is 10 percent, then the required reserves at Bank A equal:

• $4.3 million.
• $387 million.
• $28.8 million.
• $43 million.

3. M1 is comprised of currency held outside banks + traveler's checks + __________.

• credit cards
• savings deposits
• gold
• Checking account balances

4. A financial asset is liquid:

• if it can be carried easily from one place to another.
• if it can be readily exchanged for another asset or good.
• only if it takes the form of cash.
• if it is held by the public and earning interest.