Question 1

Fiat money is less elastic than credit money.

Accepted Answer

A) True 
 B)False

Question 2

An advantage of commodity money is that prices automatically adjust with the supply of money. If this is true, why would economists also say the supply of money should be inelastic?

Accepted Answer

The process of price

Question 3

The biggest problem with credit money is

Accepted Answer

A)  divisibility. 
B)  elasticity of supply. 
C)  portability. 
D)  none of the above. 
A)  divisibility. 
B)  elasticity of supply. 
C)  portability. 
D)  none of the above.

Question 4

What is the double coincidence of wants?

Accepted Answer

To trade without money, one mu

Question 5

What are the advantages and disadvantages of commodity money?

Accepted Answer

The major advantage is that it is self-e

Question 6

An advantage of most representative money is that it is uniform.

Accepted Answer

A) True 
 B)False

Question 7

An advantage of credit money is

Accepted Answer

A)  elasticity of supply. 
B)  default risk. 
C)  indivisibility. 
D)  none of the above. 
A)  elasticity of supply. 
B)  default risk. 
C)  indivisibility. 
D)  none of the above.

Question 8

Money

Accepted Answer

A)  does not have to be valuable except as a means of trade. 
B)  must act as a long term store of value. 
C)  must have value besides as a means to trade. 
D)  all of the above. 
A)  does not have to be valuable except as a means of trade. 
B)  must act as a long term store of value. 
C)  must have value besides as a means to trade. 
D)  all of the above.

Question 9

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 10

Rarity is an essential feature of money.

Accepted Answer

A) True 
 B)False

Question 11

Default risk is a potential problem for which of the following form(s) of money?

Accepted Answer

A)  commodity 
B)  representative 
C)  credit 
D)  all of the above 
A)  commodity 
B)  representative 
C)  credit 
D)  all of the above

Question 12

An advantage of commodity money is that prices cannot rise indefinitely.

Accepted Answer

A) True 
 B)False

Question 13

Diamonds do not make very good money because they are not easily

Accepted Answer

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

Question 14

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 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

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

Accepted Answer

A) True 
 B)False

Question 17

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 18

In the absence of money, people

Accepted Answer

A)  must barter to trade. 
B)  produce a greater variety of goods themselves. 
C)  face the problem of "double coincidence of wants." 
D)  all of the above. 
A)  must barter to trade. 
B)  produce a greater variety of goods themselves. 
C)  face the problem of "double coincidence of wants." 
D)  all of the above.

Question 19

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 20

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

Exam 3: Money

Fiat money is less elastic than credit money.

An advantage of commodity money is that prices automatically adjust with the supply of money. If this is true, why would economists also say the supply of money should be inelastic?

The biggest problem with credit money is

What is the double coincidence of wants?

What are the advantages and disadvantages of commodity money?

An advantage of most representative money is that it is uniform.

An advantage of credit money is

Money

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

Rarity is an essential feature of money.

Default risk is a potential problem for which of the following form(s) of money?

An advantage of commodity money is that prices cannot rise indefinitely.

Diamonds do not make very good money because they are not easily

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

The dollar is an NOT an example of

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

Arrowheads are an example of _____ money.

In the absence of money, people

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

Receipts for store tobacco are NOT an example of _____ 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

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