Question 1

What is the difference between commodity and fiat money?

Accepted Answer

Commodity money has

Question 2

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 3

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

Accepted Answer

Prices rise indefinitely as th

Question 4

Commodity money can never act as representative money.

Accepted Answer

A) True 
 B)False

Question 5

At the end of the 19th century, some people (including William Jennings Bryan) advocated a bimetallic monetary standard using both gold and silver, to alleviate the deflations that occurred periodically. Was this a sensible suggestion? Would a bimetallic alleviate the problems with gold?

Accepted Answer

Switching to a bimetallic standard could

Question 6

If gold is the medium of exchange in an economy, how would prices react in a recession?

Accepted Answer

The supply of gold is inelasti

Question 7

An advantage of commodity money is that deflation is impossible.

Accepted Answer

A) True 
 B)False

Question 8

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 9

How has the introduction of SWEEP accounts affected the money supply?

Accepted Answer

SWEEP accounts essentially all

Question 10

Clamshells and gold are examples of commodity money.

Accepted Answer

A) True 
 B)False

Question 11

One of the defining features of money is that it does not pay interest.

Accepted Answer

A) True 
 B)False

Question 12

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

Accepted Answer

An issuer of credit

Question 13

Money solves the "double coincidence of wants" problem since it 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 14

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

Accepted Answer

A) True 
 B)False

Question 15

A difficulty with gold is that it does not function well as a unit of account.

Accepted Answer

A) True 
 B)False

Question 16

Checkable mutual funds are at least as liquid as any asset in M3.

Accepted Answer

A) True 
 B)False

Question 17

What can happen when a government creates too much money too quickly?

Accepted Answer

When a government creates too

Question 18

Fiat money has no intrinsic value.

Accepted Answer

A) True 
 B)False

Question 19

Stocks are less liquid than any asset in M2.

Accepted Answer

A) True 
 B)False

Question 20

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

Accepted Answer

A) True 
 B)False

Exam 3: Money

What is the difference between commodity and fiat money?

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

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

Commodity money can never act as representative money.

At the end of the 19th century, some people (including William Jennings Bryan) advocated a bimetallic monetary standard using both gold and silver, to alleviate the deflations that occurred periodically. Was this a sensible suggestion? Would a bimetallic alleviate the problems with gold?

If gold is the medium of exchange in an economy, how would prices react in a recession?

An advantage of commodity money is that deflation is impossible.

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

How has the introduction of SWEEP accounts affected the money supply?

Clamshells and gold are examples of commodity money.

One of the defining features of money is that it does not pay interest.

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

Money solves the "double coincidence of wants" problem since it acts as a

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

A difficulty with gold is that it does not function well as a unit of account.

Checkable mutual funds are at least as liquid as any asset in M3.

What can happen when a government creates too much money too quickly?

Fiat money has no intrinsic value.

Stocks are less liquid than any asset in M2.

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

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

At the end of the 19^th century, some people (including William Jennings Bryan) advocated a bimetallic monetary standard using both gold and silver, to alleviate the deflations that occurred periodically. Was this a sensible suggestion? Would a bimetallic alleviate the problems with gold?