Question 1

Real money supply expresses the money supply in terms of real goods and services.

Accepted Answer

A) True 
 B)False

Question 2

An increase in the real money supply can result from:

Accepted Answer

A)  increase in the nominal money supply or an increase in the price level. 
B)  increase in the nominal money supply or a decrease in the price level. 
C)  decrease in the nominal money supply or an increase in the price level. 
D)  decrease in the nominal money supply or a decrease in the price level. 
A)  increase in the nominal money supply or an increase in the price level. 
B)  increase in the nominal money supply or a decrease in the price level. 
C)  decrease in the nominal money supply or an increase in the price level. 
D)  decrease in the nominal money supply or a decrease in the price level.

Question 3

Financial innovations such as ATMs and electronic banking have caused an increase in the demand for money.

Accepted Answer

A) True 
 B)False

Question 4

Holding the real money supply constant, an increase in real money demand will reduce interest rates.

Accepted Answer

A) True 
 B)False

Question 5

In the money market, an excess demand for money is equivalent to an excess demand for bonds.

Accepted Answer

A) True 
 B)False

Question 6

Institutions that accept deposits from individuals and organizations, against which depositors can write checks on demand for their market transactions and that use these deposits to make loans are called:

Accepted Answer

A)  depository institutions. 
B)  financial market institutions. 
C)  insurance companies. 
D)  none of the above. 
A)  depository institutions. 
B)  financial market institutions. 
C)  insurance companies. 
D)  none of the above.

Question 7

A goal of contractionary monetary policy is to:

Accepted Answer

A)  decrease the rate of growth of real GDP. 
B)  increase the rate of growth of real GDP. 
C)  increase inflation. 
D)  none of the above. 
A)  decrease the rate of growth of real GDP. 
B)  increase the rate of growth of real GDP. 
C)  increase inflation. 
D)  none of the above.

Question 8

Contractionary monetary policy is achieved by:

Accepted Answer

A)  decreasing the amount of bank reserves and lowering the federal funds rate. 
B)  decreasing the amount of bank reserves and raising the federal funds rate. 
C)  increasing the amount of bank reserves and lowering the federal funds rate. 
D)  increasing the amount of bank reserves and raising the federal funds rate. 
A)  decreasing the amount of bank reserves and lowering the federal funds rate. 
B)  decreasing the amount of bank reserves and raising the federal funds rate. 
C)  increasing the amount of bank reserves and lowering the federal funds rate. 
D)  increasing the amount of bank reserves and raising the federal funds rate.

Question 9

In the money market, an excess supply of money is equivalent to an excess supply of bonds.

Accepted Answer

A) True 
 B)False

Question 10

In the money market, an excess demand of money will:

Accepted Answer

A)  increase the supply of bonds, increase bond prices, and decrease interest rates. 
B)  increase the supply of bonds, decrease bond prices, and decrease interest rates. 
C)  increase the supply of bonds, increase bonds prices, and increase interest rates. 
D)  increase the supply of bonds, decrease bond prices, and increase interest rates. 
A)  increase the supply of bonds, increase bond prices, and decrease interest rates. 
B)  increase the supply of bonds, decrease bond prices, and decrease interest rates. 
C)  increase the supply of bonds, increase bonds prices, and increase interest rates. 
D)  increase the supply of bonds, decrease bond prices, and increase interest rates.

Question 11

A system where goods and services are exchanged directly without a common unit of account is called the:

Accepted Answer

A)  commodity system. 
B)  fiat system. 
C)  barter system. 
D)  none of the above 
A)  commodity system. 
B)  fiat system. 
C)  barter system. 
D)  none of the above

Real money supply expresses the money supply in terms of real goods and services.

An increase in the real money supply can result from:

Financial innovations such as ATMs and electronic banking have caused an increase in the demand for money.

Holding the real money supply constant, an increase in real money demand will reduce interest rates.

In the money market, an excess demand for money is equivalent to an excess demand for bonds.

Institutions that accept deposits from individuals and organizations, against which depositors can write checks on demand for their market transactions and that use these deposits to make loans are called:

A goal of contractionary monetary policy is to:

Contractionary monetary policy is achieved by:

In the money market, an excess supply of money is equivalent to an excess supply of bonds.

In the money market, an excess demand of money will:

A system where goods and services are exchanged directly without a common unit of account is called the:

Managers and Economics

Demand, Supply, and Equilibrium Prices

Demand Elasticities

Techniques for Understanding Consumer Demand and Behavior

Production and Cost Analysis in the Short Run

Production and Cost Analysis in the Long Run

Market Structure: Perfect Competition

Market Structure: Monopoly and Monopolistic Competition

Market Structure: Oligopoly

Pricing Strategies for the Firm

Measuring Macroeconomic Activity

Spending by Individuals, Firms, and Governments on Real Goods and Services

The Aggregate Model of the Macro Economy

International and Balance of Payments Issues in the Macro Economy

Combining Micro and Macro Analysis for Managerial Decision Making

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Exam 13: The Role of Money in the Macro Economy

Real money supply expresses the money supply in terms of real goods and services.

An increase in the real money supply can result from:

Financial innovations such as ATMs and electronic banking have caused an increase in the demand for money.

Holding the real money supply constant, an increase in real money demand will reduce interest rates.

In the money market, an excess demand for money is equivalent to an excess demand for bonds.

Institutions that accept deposits from individuals and organizations, against which depositors can write checks on demand for their market transactions and that use these deposits to make loans are called:

A goal of contractionary monetary policy is to:

Contractionary monetary policy is achieved by:

In the money market, an excess supply of money is equivalent to an excess supply of bonds.

In the money market, an excess demand of money will:

A system where goods and services are exchanged directly without a common unit of account is called the:

Managers and Economics

Demand, Supply, and Equilibrium Prices

Demand Elasticities

Techniques for Understanding Consumer Demand and Behavior

Production and Cost Analysis in the Short Run

Production and Cost Analysis in the Long Run

Market Structure: Perfect Competition

Market Structure: Monopoly and Monopolistic Competition

Market Structure: Oligopoly

Pricing Strategies for the Firm

Measuring Macroeconomic Activity

Spending by Individuals, Firms, and Governments on Real Goods and Services

The Aggregate Model of the Macro Economy

International and Balance of Payments Issues in the Macro Economy

Combining Micro and Macro Analysis for Managerial Decision Making

Filters