Question 1

If the Reserve Bank of Australia buys financial securities,this

Accepted Answer

A)  increases reserves and encourages banks to make more loans. 
B)  decreases reserves and causes banks to reduce their loans. 
C)  decreases reserves, causes banks to reduce their loans, and increases interest rates. 
D)  increases reserves, causes banks to reduce their loans, and decreases interest rates. 
A)  increases reserves and encourages banks to make more loans. 
B)  decreases reserves and causes banks to reduce their loans. 
C)  decreases reserves, causes banks to reduce their loans, and increases interest rates. 
D)  increases reserves, causes banks to reduce their loans, and decreases interest rates.

Question 2

How do financial intermediaries affect risk in the financial market?

Accepted Answer

The existence of financial intermediarie

Question 3

Commodity money is

Accepted Answer

A)  a good used as money that has no secondary use. 
B)  a good that is designated as money by law. 
C)  a good used as money that also has value independent of its use as money. 
D)  a good used as money that has no intrinsic value. 
A)  a good used as money that has no secondary use. 
B)  a good that is designated as money by law. 
C)  a good used as money that also has value independent of its use as money. 
D)  a good used as money that has no intrinsic value.

Question 4

In March 2014,which of the following comprised the largest individual component of credit in Australia?

Accepted Answer

A)  Credit cards 
B)  Business loans 
C)  Housing loans 
D)  Personal loans 
A)  Credit cards 
B)  Business loans 
C)  Housing loans 
D)  Personal loans

Question 5

Which of the following is a liability of a bank?

Accepted Answer

A)  Deposits 
B)  Reserves 
C)  Securities 
D)  Loans 
A)  Deposits 
B)  Reserves 
C)  Securities 
D)  Loans

Question 6

Gold is an example of

Accepted Answer

A)  commodity money. 
B)  fiat money. 
C)  barter money. 
D)  M3. 
A)  commodity money. 
B)  fiat money. 
C)  barter money. 
D)  M3.

Question 7

When banks gain ________,they can ________ their loans,and the money supply ________.

Accepted Answer

A)  reserves; increase; contracts 
B)  withdrawals; increase; expands 
C)  withdrawals; decrease; expands 
D)  reserves; increase; expands 
A)  reserves; increase; contracts 
B)  withdrawals; increase; expands 
C)  withdrawals; decrease; expands 
D)  reserves; increase; expands

Question 8

________ are financial securities that represent partial ownership of a firm.

Accepted Answer

A)  Shares 
B)  Bonds 
C)  Treasury bills 
D)  Certificates of deposit 
A)  Shares 
B)  Bonds 
C)  Treasury bills 
D)  Certificates of deposit

Question 9

A person wanting the most liquid asset possible will hold

Accepted Answer

A)  a demand deposit account. 
B)  Australian government bonds. 
C)  currency. 
D)  gold. 
A)  a demand deposit account. 
B)  Australian government bonds. 
C)  currency. 
D)  gold.

Question 10

If banks do not loan out all their excess reserves,then the real-world multiplier is

Accepted Answer

A)  smaller than 1/RR. 
B)  larger than 1/RR. 
C)  equal to 1/RR. 
D)  not related to 1/RR. 
A)  smaller than 1/RR. 
B)  larger than 1/RR. 
C)  equal to 1/RR. 
D)  not related to 1/RR.

Question 11

A unit of account is

Accepted Answer

A)  a standard unit that provides a consistent way of quoting prices. 
B)  an asset that can be used to transport purchasing power from one period of time to another. 
C)  what sellers generally accept and buyers generally use to pay for goods and services. 
D)  the ability to buy something today but to defer payment to the future. 
A)  a standard unit that provides a consistent way of quoting prices. 
B)  an asset that can be used to transport purchasing power from one period of time to another. 
C)  what sellers generally accept and buyers generally use to pay for goods and services. 
D)  the ability to buy something today but to defer payment to the future.

Question 12

A disadvantage of using money as a store of value is that

Accepted Answer

A)  money is not portable. 
B)  it requires a double coincidence of wants. 
C)  currency is intrinsically worthless. 
D)  the value of money falls when the prices of goods and services rise. 
A)  money is not portable. 
B)  it requires a double coincidence of wants. 
C)  currency is intrinsically worthless. 
D)  the value of money falls when the prices of goods and services rise.

Question 13

In March 2014,the level of credit in Australia was approximately

Accepted Answer

A)  $2237.9 billion. 
B)  $49.8 billion. 
C)  $141.8 billion. 
D)  $445.1 billion. 
A)  $2237.9 billion. 
B)  $49.8 billion. 
C)  $141.8 billion. 
D)  $445.1 billion.

Question 14

Which of the following is part of a bank's reserves?

Accepted Answer

A)  Money in the bank's vaults 
B)  Government bonds 
C)  Loans 
D)  Buildings and equipment 
A)  Money in the bank's vaults 
B)  Government bonds 
C)  Loans 
D)  Buildings and equipment

Question 15

If the Reserve Bank of Australia wants to increase interest rates,it will

Accepted Answer

A)  buy financial securities. 
B)  sell financial securities. 
C)  increase the exchange rate. 
D)  decrease the exchange rate. 
A)  buy financial securities. 
B)  sell financial securities. 
C)  increase the exchange rate. 
D)  decrease the exchange rate.

Question 16

Which one of the following is not considered a financial intermediary?

Accepted Answer

A)  A building society 
B)  A managed fund 
C)  An insurance company 
D)  A financial advisor 
A)  A building society 
B)  A managed fund 
C)  An insurance company 
D)  A financial advisor

Question 17

A bank holds its reserves as ________ and ________.

Accepted Answer

A)  securities; loans 
B)  securities; deposits at the Reserve Bank of Australia 
C)  vault cash; deposits at the Reserve Bank of Australia 
D)  vault cash; loans 
A)  securities; loans 
B)  securities; deposits at the Reserve Bank of Australia 
C)  vault cash; deposits at the Reserve Bank of Australia 
D)  vault cash; loans

Question 18

When Gina Rinehart is described as 'the richest woman in Australia and worth over $9 billion,' this statement is referring to her

Accepted Answer

A)  income. 
B)  demand-deposit accounts. 
C)  money. 
D)  wealth. 
A)  income. 
B)  demand-deposit accounts. 
C)  money. 
D)  wealth.

Question 19

If the Reserve Bank of Australia wanted to increase the value of the Australian dollar relative to other currencies,it would sell Australian dollars in foreign currency markets.

Accepted Answer

A) True 
 B)False

Question 20

What role does the Reserve Bank of Australia (RBA)have in the economy? Describe the structure of the Reserve Bank of Australia's Board,and explain what open market operations are.

Accepted Answer

The Reserve Bank of Australia is Austral

If the Reserve Bank of Australia buys financial securities,this

How do financial intermediaries affect risk in the financial market?

Commodity money is

In March 2014,which of the following comprised the largest individual component of credit in Australia?

Which of the following is a liability of a bank?

Gold is an example of

When banks gain ,they can their loans,and the money supply .

________ are financial securities that represent partial ownership of a firm.

A person wanting the most liquid asset possible will hold

If banks do not loan out all their excess reserves,then the real-world multiplier is

A unit of account is

A disadvantage of using money as a store of value is that

In March 2014,the level of credit in Australia was approximately

Which of the following is part of a bank's reserves?

If the Reserve Bank of Australia wants to increase interest rates,it will

Which one of the following is not considered a financial intermediary?

A bank holds its reserves as and .

When Gina Rinehart is described as 'the richest woman in Australia and worth over $9 billion,' this statement is referring to her

If the Reserve Bank of Australia wanted to increase the value of the Australian dollar relative to other currencies,it would sell Australian dollars in foreign currency markets.

What role does the Reserve Bank of Australia (RBA)have in the economy? Describe the structure of the Reserve Bank of Australia's Board,and explain what open market operations are.

Economics: Foundations and Models

Trade-Offs, comparative Advantage, and the Market System

Where Prices Come From: the Interaction of Demand and Supply

Market Efficiency and Market Failure

The Economics of Healthcare

Firms,the Stock Market,and Corporate Governance

Consumer Choice and Elasticity

Technology, production, and Costs

Firms in Perfectly Competitive Markets

Monopoly and Antitrust

Monopolistic Competition and Oligopoly

GDP: Measuring Total Production and Income

Unemployment and Inflation

Economic Growth, the Financial System and Business Cycles

Money, banks, and the Federal Reserve System

Monetary Policy

Fiscal Policy

Comparative Advantage, international Trade, and Exchange Rates

Filters

Exam 15: Aggregate Demand and Aggregate Supply Analysis

If the Reserve Bank of Australia buys financial securities,this

How do financial intermediaries affect risk in the financial market?

Commodity money is

In March 2014,which of the following comprised the largest individual component of credit in Australia?

Which of the following is a liability of a bank?

Gold is an example of

When banks gain ________,they can ________ their loans,and the money supply ________.

________ are financial securities that represent partial ownership of a firm.

A person wanting the most liquid asset possible will hold

If banks do not loan out all their excess reserves,then the real-world multiplier is

A unit of account is

A disadvantage of using money as a store of value is that

In March 2014,the level of credit in Australia was approximately

Which of the following is part of a bank's reserves?

If the Reserve Bank of Australia wants to increase interest rates,it will

Which one of the following is not considered a financial intermediary?

A bank holds its reserves as ________ and ________.

When Gina Rinehart is described as 'the richest woman in Australia and worth over $9 billion,' this statement is referring to her

If the Reserve Bank of Australia wanted to increase the value of the Australian dollar relative to other currencies,it would sell Australian dollars in foreign currency markets.

What role does the Reserve Bank of Australia (RBA)have in the economy? Describe the structure of the Reserve Bank of Australia's Board,and explain what open market operations are.

Economics: Foundations and Models

Trade-Offs, comparative Advantage, and the Market System

Where Prices Come From: the Interaction of Demand and Supply

Market Efficiency and Market Failure

The Economics of Healthcare

Firms,the Stock Market,and Corporate Governance

Consumer Choice and Elasticity

Technology, production, and Costs

Firms in Perfectly Competitive Markets

Monopoly and Antitrust

Monopolistic Competition and Oligopoly

GDP: Measuring Total Production and Income

Unemployment and Inflation

Economic Growth, the Financial System and Business Cycles

Money, banks, and the Federal Reserve System

Monetary Policy

Fiscal Policy

Comparative Advantage, international Trade, and Exchange Rates

Filters

When banks gain ,they can their loans,and the money supply .

A bank holds its reserves as and .