Question 1

A gold-based commodity money prevents:

Accepted Answer

A)  The central bank from independently pursuing expansionary monetary policy 
B)  Recessions 
C)  Confidence from falling 
D)  Countries from erecting trade barriers with one another 
A)  The central bank from independently pursuing expansionary monetary policy 
B)  Recessions 
C)  Confidence from falling 
D)  Countries from erecting trade barriers with one another A

Question 2

In the face of expected depreciation of a fixed exchange rate, the central bank must:

Accepted Answer

A)  Lower interest rates 
B)  Raise interest rates 
C)  Expand the monetary base 
D)  Raise minimum reserve requirements 
A)  Lower interest rates 
B)  Raise interest rates 
C)  Expand the monetary base 
D)  Raise minimum reserve requirements B

Question 3

Which of these is the least desirable characteristic of gold:

Accepted Answer

A)  It does not corrode 
B)  It can be alloyed with other metals 
C)  It is scarce 
D)  Bars of it are heavy 
A)  It does not corrode 
B)  It can be alloyed with other metals 
C)  It is scarce 
D)  Bars of it are heavy D

Question 4

Which of the following is the factor that least prevents us from returning to a gold standard:

Accepted Answer

A)  Speculative attacks against exchange rates 
B)  Lack of confidence in gold 
C)  An insufficient stock of gold 
D)  A desire to maintain autonomous monetary policy 
A)  Speculative attacks against exchange rates 
B)  Lack of confidence in gold 
C)  An insufficient stock of gold 
D)  A desire to maintain autonomous monetary policy

Question 5

Gold as an investment:

Accepted Answer

A)  Produces little-to-no return 
B)  Yields high returns 
C)  Pays high dividends 
D)  Has a higher average return than stocks 
A)  Produces little-to-no return 
B)  Yields high returns 
C)  Pays high dividends 
D)  Has a higher average return than stocks

Question 6

Which of the following is the least important factor that can make gold serve as a form of money:

Accepted Answer

A)  It can be a medium of exchange 
B)  It can be a store of value 
C)  It is durable 
D)  It can be a unit of account 
A)  It can be a medium of exchange 
B)  It can be a store of value 
C)  It is durable 
D)  It can be a unit of account

Question 7

The price of gold is primarily driven by:

Accepted Answer

A)  Confidence in the ruling government of a nation 
B)  How the stock market is performing 
C)  Supply and demand 
D)  Markets' expectation of a recession 
A)  Confidence in the ruling government of a nation 
B)  How the stock market is performing 
C)  Supply and demand 
D)  Markets' expectation of a recession

Question 8

The most common solution to a speculative attack against a fixed exchange rate is to:

Accepted Answer

A)  Borrow money from other countries 
B)  Reduce capital controls 
C)  Appoint new governors of the central bank 
D)  Abandon the fixed exchange rate 
A)  Borrow money from other countries 
B)  Reduce capital controls 
C)  Appoint new governors of the central bank 
D)  Abandon the fixed exchange rate

Question 9

A gold standard is:

Accepted Answer

A)  A political system 
B)  A system of floating exchange rate 
C)  A system of fixed exchange rates 
D)  A system of no international trade 
A)  A political system 
B)  A system of floating exchange rate 
C)  A system of fixed exchange rates 
D)  A system of no international trade

A gold-based commodity money prevents:

In the face of expected depreciation of a fixed exchange rate, the central bank must:

Which of these is the least desirable characteristic of gold:

Which of the following is the factor that least prevents us from returning to a gold standard:

Gold as an investment:

Which of the following is the least important factor that can make gold serve as a form of money:

The price of gold is primarily driven by:

The most common solution to a speculative attack against a fixed exchange rate is to:

A gold standard is:

Confidence, Monetary Policy, and Fiscal Policy

Basic Accounting and Financial Statements

Relationship of the Federal Reserve Bank and the US Treasury Department

The Truth Behind Money Creation

Money, Banking, and the Real Economy

Global Monetary Linkage

Monetary Sterilization in China

World Reserve Currency

Real Estate

Oil

Cryptocurrencies

Filters

Exam 11: Gold

A gold-based commodity money prevents:

In the face of expected depreciation of a fixed exchange rate, the central bank must:

Which of these is the least desirable characteristic of gold:

Which of the following is the factor that least prevents us from returning to a gold standard:

Gold as an investment:

Which of the following is the least important factor that can make gold serve as a form of money:

The price of gold is primarily driven by:

The most common solution to a speculative attack against a fixed exchange rate is to:

A gold standard is:

Confidence, Monetary Policy, and Fiscal Policy

Basic Accounting and Financial Statements

Relationship of the Federal Reserve Bank and the US Treasury Department

The Truth Behind Money Creation

Money, Banking, and the Real Economy

Global Monetary Linkage

Monetary Sterilization in China

World Reserve Currency

Real Estate

Oil

Cryptocurrencies

Filters