Multiple choice

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.