Question 1

When we say that money is a stock variable,we mean that

Accepted Answer

A)  the quantity of money is measured at a given point in time. 
B)  we must attach a time period to the measure. 
C)  it is sold in the equity market. 
D)  money never loses purchasing power. 
A)  the quantity of money is measured at a given point in time. 
B)  we must attach a time period to the measure. 
C)  it is sold in the equity market. 
D)  money never loses purchasing power.

Question 2

An important characteristic of the modern payments system has been the rapidly increasing use of

Accepted Answer

A)  checks and decreasing use of currency. 
B)  electronic fund transfers. 
C)  commodity monies. 
D)  fiat money. 
A)  checks and decreasing use of currency. 
B)  electronic fund transfers. 
C)  commodity monies. 
D)  fiat money.

Question 3

The components of the U.S.M1 money supply are demand and checkable deposits plus

Accepted Answer

A)  currency. 
B)  currency plus savings deposits. 
C)  currency plus travelers checks. 
D)  currency plus travelers checks plus money market deposits. 
A)  currency. 
B)  currency plus savings deposits. 
C)  currency plus travelers checks. 
D)  currency plus travelers checks plus money market deposits.

Question 4

A person's house is part of her

Accepted Answer

A)  money. 
B)  income. 
C)  liabilities. 
D)  wealth. 
A)  money. 
B)  income. 
C)  liabilities. 
D)  wealth.

Question 5

The difference between money and income is that

Accepted Answer

A)  money is a flow and income is a stock. 
B)  money is a stock and income is a flow. 
C)  there is no difference-money and income are both stocks. 
D)  there is no difference-money and income are both flows. 
A)  money is a flow and income is a stock. 
B)  money is a stock and income is a flow. 
C)  there is no difference-money and income are both stocks. 
D)  there is no difference-money and income are both flows.

Question 6

In a barter economy the number of prices in an economy with N goods is

Accepted Answer

A)  [N(N - 1)]/2. 
B)  N(N/2). 
C)  2N. 
D)  N(N/2) - 1. 
A)  [N(N - 1)]/2. 
B)  N(N/2). 
C)  2N. 
D)  N(N/2) - 1.

Question 7

All but the most primitive societies use money as a medium of exchange,implying that

Accepted Answer

A)  the use of money is economically efficient. 
B)  barter exchange is economically efficient. 
C)  barter exchange cannot work outside the family. 
D)  inflation is not a concern. 
A)  the use of money is economically efficient. 
B)  barter exchange is economically efficient. 
C)  barter exchange cannot work outside the family. 
D)  inflation is not a concern.

Question 8

Of the following assets,the least liquid is

Accepted Answer

A)  stocks. 
B)  traveler's checks. 
C)  checking deposits. 
D)  a house. 
A)  stocks. 
B)  traveler's checks. 
C)  checking deposits. 
D)  a house.

Question 9

Paper currency that has been declared legal tender but is not convertible into coins or precious metals is called ________ money.

Accepted Answer

A)  commodity 
B)  fiat 
C)  electronic 
D)  funny 
A)  commodity 
B)  fiat 
C)  electronic 
D)  funny

Question 10

Which of the following is not included in the monetary aggregate M2?

Accepted Answer

A)  Currency 
B)  Savings bonds 
C)  Traveler's checks 
D)  Checking deposits 
A)  Currency 
B)  Savings bonds 
C)  Traveler's checks 
D)  Checking deposits

Question 11

The evolution of the payments system from barter to precious metals,then to fiat money,then to checks can best be understood as a consequence of

Accepted Answer

A)  government regulations designed to improve the efficiency of the payments system. 
B)  government regulations designed to promote the safety of the payments system. 
C)  innovations that reduced the costs of exchanging goods and services. 
D)  competition among firms to make it easier for customers to purchase their products. 
A)  government regulations designed to improve the efficiency of the payments system. 
B)  government regulations designed to promote the safety of the payments system. 
C)  innovations that reduced the costs of exchanging goods and services. 
D)  competition among firms to make it easier for customers to purchase their products.

Question 12

The evolution of the payments system from barter to precious metals,then to fiat money,then to checks can best be understood as a consequence of the fact that

Accepted Answer

A)  paper is more costly to produce than precious metals. 
B)  precious metals were not generally acceptable. 
C)  precious metals were difficult to carry and transport. 
D)  paper money is less accepted than checks. 
A)  paper is more costly to produce than precious metals. 
B)  precious metals were not generally acceptable. 
C)  precious metals were difficult to carry and transport. 
D)  paper money is less accepted than checks.

Question 13

To an economist,________ is anything that is generally accepted in payment for goods and services or in the repayment of debt.

Accepted Answer

A)  wealth 
B)  income 
C)  money 
D)  credit 
A)  wealth 
B)  income 
C)  money 
D)  credit

Question 14

All of the following are necessary criteria for a commodity to function as money except

Accepted Answer

A)  it must deteriorate quickly. 
B)  it must be divisible. 
C)  it must be easy to carry. 
D)  it must be widely accepted. 
A)  it must deteriorate quickly. 
B)  it must be divisible. 
C)  it must be easy to carry. 
D)  it must be widely accepted.

When we say that money is a stock variable,we mean that

An important characteristic of the modern payments system has been the rapidly increasing use of

The components of the U.S.M1 money supply are demand and checkable deposits plus

A person's house is part of her

The difference between money and income is that

In a barter economy the number of prices in an economy with N goods is

All but the most primitive societies use money as a medium of exchange,implying that

Of the following assets,the least liquid is

Paper currency that has been declared legal tender but is not convertible into coins or precious metals is called ________ money.

Which of the following is not included in the monetary aggregate M2?

The evolution of the payments system from barter to precious metals,then to fiat money,then to checks can best be understood as a consequence of

The evolution of the payments system from barter to precious metals,then to fiat money,then to checks can best be understood as a consequence of the fact that

To an economist,________ is anything that is generally accepted in payment for goods and services or in the repayment of debt.

All of the following are necessary criteria for a commodity to function as money except

Why Study Money, banking, and Financial Markets

An Overview of the Financial System

Understanding Interest Rates

The Behavior of Interest Rates

The Risk and Term Structure of Interest Rates

The Stock Market, the Theory of Rational Expectations, and the Efficient Market Hypothesis

An Economic Analysis of Financial Structure

Financial Crises

Banking and the Management of Financial Institutions

Economic Analysis of Financial Regulation

Banking Industry: Structure and Competition

Central Banks and the Federal Reserve System

The Money Supply Process

Tools of Monetary Policy

The Conduct of Monetary Policy: Strategy and Tactics

The Foreign Exchange Market

The International Financial System

Quantity Theory, inflation and the Demand for Money

The Is Curve

The Monetary Policy and Aggregate Demand Curves

Aggregate Demand and Supply Analysis

Monetary Policy Theory

The Role of Expectations in Monetary Policy

Transmission Mechanisms of Monetary Policy

The ISLM Model

Filters

Exam 3: What Is Money

When we say that money is a stock variable,we mean that

An important characteristic of the modern payments system has been the rapidly increasing use of

The components of the U.S.M1 money supply are demand and checkable deposits plus

A person's house is part of her

The difference between money and income is that

In a barter economy the number of prices in an economy with N goods is

All but the most primitive societies use money as a medium of exchange,implying that

Of the following assets,the least liquid is

Paper currency that has been declared legal tender but is not convertible into coins or precious metals is called ________ money.

Which of the following is not included in the monetary aggregate M2?

The evolution of the payments system from barter to precious metals,then to fiat money,then to checks can best be understood as a consequence of

The evolution of the payments system from barter to precious metals,then to fiat money,then to checks can best be understood as a consequence of the fact that

To an economist,________ is anything that is generally accepted in payment for goods and services or in the repayment of debt.

All of the following are necessary criteria for a commodity to function as money except

Why Study Money, banking, and Financial Markets

An Overview of the Financial System

Understanding Interest Rates

The Behavior of Interest Rates

The Risk and Term Structure of Interest Rates

The Stock Market, the Theory of Rational Expectations, and the Efficient Market Hypothesis

An Economic Analysis of Financial Structure

Financial Crises

Banking and the Management of Financial Institutions

Economic Analysis of Financial Regulation

Banking Industry: Structure and Competition

Central Banks and the Federal Reserve System

The Money Supply Process

Tools of Monetary Policy

The Conduct of Monetary Policy: Strategy and Tactics

The Foreign Exchange Market

The International Financial System

Quantity Theory, inflation and the Demand for Money

The Is Curve

The Monetary Policy and Aggregate Demand Curves

Aggregate Demand and Supply Analysis

Monetary Policy Theory

The Role of Expectations in Monetary Policy

Transmission Mechanisms of Monetary Policy

The ISLM Model

Filters