Question 1

Money

Accepted Answer

A)  is anything generally accepted for trade. 
B)  does not have to be valuable except as a means of trade. 
C)  can allow people to save more easily. 
D)  all of the above. 
A)  is anything generally accepted for trade. 
B)  does not have to be valuable except as a means of trade. 
C)  can allow people to save more easily. 
D)  all of the above.

Question 2

Money is the only asset that acts as a

Accepted Answer

A)  medium of exchange. 
B)  unit of account. 
C)  store of value. 
D)  all of the above. 
A)  medium of exchange. 
B)  unit of account. 
C)  store of value. 
D)  all of the above.

Question 3

How many prices would be required in a barter economy with 4 goods?

Accepted Answer

The answer of How many prices would be required in...

Question 4

Fiat money is self-equilibrating.

Accepted Answer

A) True 
 B)False

Question 5

Commodity money can never act as representative money.

Accepted Answer

A) True 
 B)False

Question 6

Why do economists say that money helps to increase specialized production?

Accepted Answer

Trade is more difficult in a barter econ

Question 7

Tulips don't make very good money because they are particularly bad as a

Accepted Answer

A)  medium of exchange. 
B)  unit of account. 
C)  store of value. 
D)  none of the above. 
A)  medium of exchange. 
B)  unit of account. 
C)  store of value. 
D)  none of the above.

Question 8

A government law about "legal tender" is not necessary for money to exist.

Accepted Answer

A) True 
 B)False

Question 9

Could prices for goods rise indefinitely under commodity or fiat money? Explain.

Accepted Answer

Prices rise indefinitely as th

Question 10

Which type of money is the most difficult to counterfeit?

Accepted Answer

A)  fiat 
B)  commodity 
C)  representative 
D)  credit 
A)  fiat 
B)  commodity 
C)  representative 
D)  credit

Question 11

Which of the following invest in short-term, or money market, instruments?

Accepted Answer

A)  sweep accounts 
B)  ATS accounts 
C)  money market mutual funds 
D)  all of the above 
A)  sweep accounts 
B)  ATS accounts 
C)  money market mutual funds 
D)  all of the above

Question 12

Rarity is an essential feature of money.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following is/are desirable attributes of a medium of exchange?

Accepted Answer

A)  durability 
B)  elasticity of supply 
C)  divisibility 
D)  all of the above 
A)  durability 
B)  elasticity of supply 
C)  divisibility 
D)  all of the above

Question 14

Credit money has inelastic supply.

Accepted Answer

A) True 
 B)False

Question 15

The dollar is an NOT an example of

Accepted Answer

A)  fiat money. 
B)  representative money. 
C)  credit money. 
D)  all of the above. 
A)  fiat money. 
B)  representative money. 
C)  credit money. 
D)  all of the above.

Question 16

ATS accounts automatically transfer money from a checking account to a bank account.

Accepted Answer

A) True 
 B)False

Question 17

What are the advantages of representative money?

Accepted Answer

Representative money is easy a

Question 18

If a commodity money becomes easier to find or produce, prices denominated in that money will (ceteris paribus)

Accepted Answer

A)  rise. 
B)  fall. 
C)  stay the same. 
D)  cannot be determined. 
A)  rise. 
B)  fall. 
C)  stay the same. 
D)  cannot be determined.

Question 19

Money is

Accepted Answer

A)  anything that acts as a store of value. 
B)  a divisible good that can be traded with many people. 
C)  anything generally accepted for trade. 
D)  all of the above. 
A)  anything that acts as a store of value. 
B)  a divisible good that can be traded with many people. 
C)  anything generally accepted for trade. 
D)  all of the above.

Question 20

If an economy is using a medium of exchange that has an inelastic supply, how do prices change in an economic recession? Why?

Accepted Answer

Prices rise in a recession sin

Exam 3: Money

Money

Money is the only asset that acts as a

How many prices would be required in a barter economy with 4 goods?

Fiat money is self-equilibrating.

Commodity money can never act as representative money.

Why do economists say that money helps to increase specialized production?

Tulips don't make very good money because they are particularly bad as a

A government law about "legal tender" is not necessary for money to exist.

Could prices for goods rise indefinitely under commodity or fiat money? Explain.

Which type of money is the most difficult to counterfeit?

Which of the following invest in short-term, or money market, instruments?

Rarity is an essential feature of money.

Which of the following is/are desirable attributes of a medium of exchange?

Credit money has inelastic supply.

The dollar is an NOT an example of

ATS accounts automatically transfer money from a checking account to a bank account.

What are the advantages of representative money?

If a commodity money becomes easier to find or produce, prices denominated in that money will (ceteris paribus)

Money is

If an economy is using a medium of exchange that has an inelastic supply, how do prices change in an economic recession? Why?

The Financial System

Interest Rates

The Economics of Interest-Rate Fluctuations

The Economics of Interest-Rate Spreads and Yield Curves

Rational Expectations, Efficient Markets, and the Valuation of Corporate Equities

Financial Structure, Transaction Costs, and Asymmetric Information

Bank Management

Innovation and Structure in Banking and Finance

The Economics of Financial Regulation

Financial Derivatives

Financial Crises: Causes and Consequences

Central Bank Form and Function

The Money Supply Process and the Money Multipliers

Monetary Policy Tools

Monetary Policy Targets and Goals

Foreign Exchange

International Monetary Regimes

Money Demand

Is-Lm

Is-Lm in Action

Aggregate Supply and Demand and the Growth Diamond

Monetary Policy Transmission Mechanisms

Inflation and Money

Rational Expectations Redux: Monetary Policy Implications

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