Question 1

Explain the evolution of the payments system. Is the system headed towards a cashless society?

Accepted Answer

Societies begin with a barter system and

Question 2

Compared to an electronic payments system, a payments system based on cheques has the major drawback that ________.

Accepted Answer

A)  cheques are less costly to process 
B)  cheques take longer to process, meaning that it may take several days before the depositor can get her cash 
C)  fraud may be more difficult to commit when paper receipts are eliminated 
D)  legal liability is more clearly defined 
A)  cheques are less costly to process 
B)  cheques take longer to process, meaning that it may take several days before the depositor can get her cash 
C)  fraud may be more difficult to commit when paper receipts are eliminated 
D)  legal liability is more clearly defined

Question 3

Explain the concepts of wealth and income and how they relate to the concept of money.

Accepted Answer

Non-economists often use money synonymou

Question 4

If merchants in the country Zed choose to close their doors, preferring to be stuck with rotting merchandise rather than worthless currency, then one can conclude that Zed is experiencing a ________.

Accepted Answer

A)  superdeflation 
B)  hyperdeflation 
C)  disinflation 
D)  hyperinflation 
A)  superdeflation 
B)  hyperdeflation 
C)  disinflation 
D)  hyperinflation

Question 5

The currency component of M2 shows that there is ________ in cash in the hands of each person in Canada.

Accepted Answer

A)  $150 
B)  $15000 
C)  $1500 
D)  $15 
A)  $150 
B)  $15000 
C)  $1500 
D)  $15

Question 6

There is no single precise measure of money or the money supply for economists because ________.

Accepted Answer

A)  the government considers money supply statistics to be confidential and refuses to publish them 
B)  deciding what is generally accepted in payment for goods and services or in the repayment of debt is difficult to determine 
C)  economists cannot agree if currency should be considered money 
D)  definitions change all the time 
A)  the government considers money supply statistics to be confidential and refuses to publish them 
B)  deciding what is generally accepted in payment for goods and services or in the repayment of debt is difficult to determine 
C)  economists cannot agree if currency should be considered money 
D)  definitions change all the time

Question 7

Which of the following is not included in the measure of M2?

Accepted Answer

A)  Personal deposits 
B)  Non-personal demand deposits 
C)  Currency 
D)  Foreign currency deposits 
A)  Personal deposits 
B)  Non-personal demand deposits 
C)  Currency 
D)  Foreign currency deposits

Question 8

Since it does not have to be converted into anything else to make purchases, ________ is the most liquid asset.

Accepted Answer

A)  money 
B)  stock 
C)  artwork 
D)  gold 
A)  money 
B)  stock 
C)  artwork 
D)  gold

Question 9

An individual's annual salary is her ________.

Accepted Answer

A)  money 
B)  income 
C)  wealth 
D)  liabilities 
A)  money 
B)  income 
C)  wealth 
D)  liabilities

Question 10

When compared to exchange systems that rely on money, disadvantages of the barter system include ________.

Accepted Answer

A)  the requirement of a double coincidence of wants 
B)  lowering the cost of exchanging goods over time 
C)  lowering the cost of exchange to those who would specialize 
D)  encouraging specialization and the division of labor 
A)  the requirement of a double coincidence of wants 
B)  lowering the cost of exchanging goods over time 
C)  lowering the cost of exchange to those who would specialize 
D)  encouraging specialization and the division of labor

Explain the evolution of the payments system. Is the system headed towards a cashless society?

Compared to an electronic payments system, a payments system based on cheques has the major drawback that ________.

Explain the concepts of wealth and income and how they relate to the concept of money.

If merchants in the country Zed choose to close their doors, preferring to be stuck with rotting merchandise rather than worthless currency, then one can conclude that Zed is experiencing a ________.

The currency component of M2 shows that there is ________ in cash in the hands of each person in Canada.

There is no single precise measure of money or the money supply for economists because ________.

Which of the following is not included in the measure of M2?

Since it does not have to be converted into anything else to make purchases, ________ is the most liquid asset.

An individual's annual salary is her ________.

When compared to exchange systems that rely on money, disadvantages of the barter system include ________.

Why Study Money, Banking, and Financial Markets

An Overview of the Financial System

The Meaning of Interest Rates

The Behaviour of Interest Rates

The Risk and Term Structure of Interest Rates

The Stock Market, the Theory of Rational Expectations, and the Efficient Market Hypothesis

An Economic Analysis of Financial Structure

Economic Analysis of Financial Regulation

Banking Industry: Structure and Competition

Financial Crises

Banking and the Management of Financial Institutions

Risk Management With Financial Derivatives

Central Banks and the Bank of Canada

The Money Supply Process

Tools of Monetary Policy

The Conduct of Monetary Policy: Strategy and Tactics

The Foreign Exchange Market

The International Financial System

Quantity Theory, Inflation, and the Demand for Money

The Is Curve

The Monetary Policy and Aggregate Demand Curves

Aggregate Demand and Supply Analysis

Monetary Policy Theory

The Role of Expectations in Monetary Policy

Transmission Mechanisms of Monetary Policy

Filters

Exam 3: What Is Money

Explain the evolution of the payments system. Is the system headed towards a cashless society?

Compared to an electronic payments system, a payments system based on cheques has the major drawback that ________.

Explain the concepts of wealth and income and how they relate to the concept of money.

If merchants in the country Zed choose to close their doors, preferring to be stuck with rotting merchandise rather than worthless currency, then one can conclude that Zed is experiencing a ________.

The currency component of M2 shows that there is ________ in cash in the hands of each person in Canada.

There is no single precise measure of money or the money supply for economists because ________.

Which of the following is not included in the measure of M2?

Since it does not have to be converted into anything else to make purchases, ________ is the most liquid asset.

An individual's annual salary is her ________.

When compared to exchange systems that rely on money, disadvantages of the barter system include ________.

Why Study Money, Banking, and Financial Markets

An Overview of the Financial System

The Meaning of Interest Rates

The Behaviour of Interest Rates

The Risk and Term Structure of Interest Rates

The Stock Market, the Theory of Rational Expectations, and the Efficient Market Hypothesis

An Economic Analysis of Financial Structure

Economic Analysis of Financial Regulation

Banking Industry: Structure and Competition

Financial Crises

Banking and the Management of Financial Institutions

Risk Management With Financial Derivatives

Central Banks and the Bank of Canada

The Money Supply Process

Tools of Monetary Policy

The Conduct of Monetary Policy: Strategy and Tactics

The Foreign Exchange Market

The International Financial System

Quantity Theory, Inflation, and the Demand for Money

The Is Curve

The Monetary Policy and Aggregate Demand Curves

Aggregate Demand and Supply Analysis

Monetary Policy Theory

The Role of Expectations in Monetary Policy

Transmission Mechanisms of Monetary Policy

Filters