Question 1

Rocks would not make very good money because they are not easily

Accepted Answer

A)  divisible. 
B)  uniform. 
C)  portable 
D)  all of the above. 
A)  divisible. 
B)  uniform. 
C)  portable 
D)  all of the above.

Question 2

Checking accounts are part of the money supply defined by M0.

Accepted Answer

A) True 
 B)False

Question 3

If an economy uses furs as money and the supply is suddenly cut in half, then prices of other goods in terms of furs will

Accepted Answer

A)  double. 
B)  be halved. 
C)  stay the same. 
D)  none of the above. 
A)  double. 
B)  be halved. 
C)  stay the same. 
D)  none of the above.

Question 4

Who is more likely to be unable to pay as promised in fractional reserve banking?

Accepted Answer

An issuer of credit

Question 5

Arrowheads are an example of _____ money.

Accepted Answer

A)  fiat 
B)  representative 
C)  credit 
D)  none of the above 
A)  fiat 
B)  representative 
C)  credit 
D)  none of the above

Question 6

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

Accepted Answer

A)  edibility 
B)  elasticity of demand 
C)  divisibility 
D)  all of the above 
A)  edibility 
B)  elasticity of demand 
C)  divisibility 
D)  all of the above

Question 7

Slips representing gold deposits with a bank are NOT an example of _____ money.

Accepted Answer

A)  fiat 
B)  representative 
C)  credit 
D)  none of the above 
A)  fiat 
B)  representative 
C)  credit 
D)  none of the above

Question 8

Commodity money is always a better store of value than fiat money.

Accepted Answer

A) True 
 B)False

Question 9

An advantage of fiat money is that the prices of goods automatically adjust with the supply of money.

Accepted Answer

A) True 
 B)False

Question 10

In what way would apples be better than diamonds as a medium of exchange?

Accepted Answer

Apples are

Question 11

What is the difference between commodity and fiat money?

Accepted Answer

Commodity money has

Question 12

How would the introduction of automatic transfer accounts have affected the money supply?

Accepted Answer

The supply of money would incr

Question 13

Receipts for store tobacco are NOT an example of _____ money.

Accepted Answer

A)  commodity 
B)  representative 
C)  credit 
D)  none of the above 
A)  commodity 
B)  representative 
C)  credit 
D)  none of the above

Question 14

Which of the following is not an example of commodity money?

Accepted Answer

A)  tobacco 
B)  gold 
C)  clamshells 
D)  all of the above 
A)  tobacco 
B)  gold 
C)  clamshells 
D)  all of the above

Question 15

What is fractional reserve banking?

Accepted Answer

Fractional reserve banking mea

Question 16

When money is used to compare the relative value of goods, it is functioning 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 17

Which of the following is part of any measure of the money supply?

Accepted Answer

A)  cash 
B)  mutual funds 
C)  bank reserves 
D)  commercial loans 
A)  cash 
B)  mutual funds 
C)  bank reserves 
D)  commercial loans

Question 18

Clamshells and gold are examples of commodity money.

Accepted Answer

A) True 
 B)False

Question 19

A disadvantage of credit money is

Accepted Answer

A)  elasticity of supply. 
B)  weight to value ratio 
C)  indivisibility. 
D)  none of the above. 
A)  elasticity of supply. 
B)  weight to value ratio 
C)  indivisibility. 
D)  none of the above.

Question 20

IOUs for gold deposits are one example of commodity money.

Accepted Answer

A) True 
 B)False

Exam 3: Money

Rocks would not make very good money because they are not easily

Checking accounts are part of the money supply defined by M0.

If an economy uses furs as money and the supply is suddenly cut in half, then prices of other goods in terms of furs will

Who is more likely to be unable to pay as promised in fractional reserve banking?

Arrowheads are an example of _____ money.

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

Slips representing gold deposits with a bank are NOT an example of _____ money.

Commodity money is always a better store of value than fiat money.

An advantage of fiat money is that the prices of goods automatically adjust with the supply of money.

In what way would apples be better than diamonds as a medium of exchange?

What is the difference between commodity and fiat money?

How would the introduction of automatic transfer accounts have affected the money supply?

Receipts for store tobacco are NOT an example of _____ money.

Which of the following is not an example of commodity money?

What is fractional reserve banking?

When money is used to compare the relative value of goods, it is functioning as a

Which of the following is part of any measure of the money supply?

Clamshells and gold are examples of commodity money.

A disadvantage of credit money is

IOUs for gold deposits are one example of commodity money.

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

Filters