Question 1

Credit cards should not be considered a form of money because

Accepted Answer

A) credit cards are not universally accepted. 
B) a credit card can only be used by the cardholder. 
C) they are not a good medium of exchange. 
D) money and credit are fundamentally different. 
E) they are too susceptible to fraud. 
A) credit cards are not universally accepted. 
B) a credit card can only be used by the cardholder. 
C) they are not a good medium of exchange. 
D) money and credit are fundamentally different. 
E) they are too susceptible to fraud.

Question 2

Circulating private bank notes

Accepted Answer

A) are still currently in use in Canada. 
B) were only widely used in Canada after World War II. 
C) have never been used in Canada. 
D) were only widely used in Canada during the Great Depression. 
E) were widely used in Canada prior to 1935. 
A) are still currently in use in Canada. 
B) were only widely used in Canada after World War II. 
C) have never been used in Canada. 
D) were only widely used in Canada during the Great Depression. 
E) were widely used in Canada prior to 1935.

Question 3

Widespread use of deposit banking and the use of cheques in transactions in Canada

Accepted Answer

A) dates back to the 19th century. 
B) has slowly developed, and the volume of transactions by cheques has surpassed the volume of transactions by cash only since the early 1980s. 
C) first occurred shortly after World War II. 
D) first occurred in the early 20th century. 
E) first occurred shortly after World War I. 
A) dates back to the 19th century. 
B) has slowly developed, and the volume of transactions by cheques has surpassed the volume of transactions by cash only since the early 1980s. 
C) first occurred shortly after World War II. 
D) first occurred in the early 20th century. 
E) first occurred shortly after World War I.

Question 4

Money neutrality refers to

Accepted Answer

A) the long run effects of a change in the level of the money supply. 
B) monetary uncertainty. 
C) the effects of money growth. 
D) the short run effects of a change in the money supply. 
E) the long run effects of money growth. 
A) the long run effects of a change in the level of the money supply. 
B) monetary uncertainty. 
C) the effects of money growth. 
D) the short run effects of a change in the money supply. 
E) the long run effects of money growth.

Question 5

In the Lagos-Wright model, when a buyer meets a seller in the DM

Accepted Answer

A) they interact in a competitive market. 
B) the buyer makes the seller a take-it-or-leave-it offer. 
C) the buyer offers the seller a credit contract. 
D) the buyer and seller play a prisoners' dilemma game. 
E) the seller makes the buyer a take-it-or-leave-it offer. 
A) they interact in a competitive market. 
B) the buyer makes the seller a take-it-or-leave-it offer. 
C) the buyer offers the seller a credit contract. 
D) the buyer and seller play a prisoners' dilemma game. 
E) the seller makes the buyer a take-it-or-leave-it offer.

Question 6

In Canadian history, use of a commodity-backed paper currency is associated with the

Accepted Answer

A) Bretton Woods agreement. 
B) Great Depression. 
C) free banking era. 
D) gold standard. 
E) Second World War. 
A) Bretton Woods agreement. 
B) Great Depression. 
C) free banking era. 
D) gold standard. 
E) Second World War.

Question 7

Fiat money

Accepted Answer

A) consists of coins issued by the Bank of Canada. 
B) consists of pieces of paper that are essentially worthless. 
C) consists of pieces of paper that are essentially worth more than the paper it is printed on. 
D) is not accepted in the exchange for goods. 
E) is not accepted in the foreign exchange market. 
A) consists of coins issued by the Bank of Canada. 
B) consists of pieces of paper that are essentially worthless. 
C) consists of pieces of paper that are essentially worth more than the paper it is printed on. 
D) is not accepted in the exchange for goods. 
E) is not accepted in the foreign exchange market.

Question 8

In the Lagos-Wright model, inflation rises when

Accepted Answer

A) there is a level increase in the money supply. 
B) unemployment falls. 
C) the bargaining power of buyers declines. 
D) aggregate output rises. 
E) money growth increases. 
A) there is a level increase in the money supply. 
B) unemployment falls. 
C) the bargaining power of buyers declines. 
D) aggregate output rises. 
E) money growth increases.

Question 9

For a buyer in the Lagos-Wright model

Accepted Answer

A)  One unit of utility in the next period is equal to $\frac { 1 } { 1 + s }$ units of current utility. 
B)  One unit of utility in the future is equivalent to one unit of utility today. 
C)  One unit of utility in the next period is equal to 2 units of current utility. 
D)  One unit of utility in the next period is equal to zero units of current utility. 
E)  One unit if utility in the next period is equal to $1 + s$ units of current utility. 
A)  One unit of utility in the next period is equal to $\frac { 1 } { 1 + s }$ units of current utility. 
B)  One unit of utility in the future is equivalent to one unit of utility today. 
C)  One unit of utility in the next period is equal to 2 units of current utility. 
D)  One unit of utility in the next period is equal to zero units of current utility. 
E)  One unit if utility in the next period is equal to $1 + s$ units of current utility.

Question 10

In the Lagos-Wright model, in the DM

Accepted Answer

A) buyers use credit. 
B) buyers use money. 
C) sellers buy goods with credit. 
D) buyers use money and credit. 
E) sellers buy goods with money. 
A) buyers use credit. 
B) buyers use money. 
C) sellers buy goods with credit. 
D) buyers use money and credit. 
E) sellers buy goods with money.

Credit cards should not be considered a form of money because

Circulating private bank notes

Widespread use of deposit banking and the use of cheques in transactions in Canada

Money neutrality refers to

In the Lagos-Wright model, when a buyer meets a seller in the DM

In Canadian history, use of a commodity-backed paper currency is associated with the

Fiat money

In the Lagos-Wright model, inflation rises when

For a buyer in the Lagos-Wright model

In the Lagos-Wright model, in the DM

Introduction

Measurement

Business Cycle Measurement

Consumer and Firm Behavior: the Workleisure Decision and Profit Maximization

A Closed-Economy One-Period Macroeconomic Model

Search and Unemployment

Economic Growth: Malthus and Solow

Income Disparity Among Countries and Endogenous Growth

A Two-Period Model: the Consumptionsavings Decision and Credit Markets

Credit Market Imperfections: Credit Frictions, Financial Crises, and Social Security

A Real Intertemporal Model With Investment

Money, Banking, Prices, and Monetary Policy

Business Cycle Models With Flexible Prices and Wages

New Keynesian Economics: Sticky Prices

Inflation: Phillips Curves and Neo-Fisherism

International Trade in Goods and Assets

Money, Inflation, and Banking: a Deeper Look

Filters

Exam 17: Money in the Open Economy

Credit cards should not be considered a form of money because

Circulating private bank notes

Widespread use of deposit banking and the use of cheques in transactions in Canada

Money neutrality refers to

In the Lagos-Wright model, when a buyer meets a seller in the DM

In Canadian history, use of a commodity-backed paper currency is associated with the

Fiat money

In the Lagos-Wright model, inflation rises when

For a buyer in the Lagos-Wright model

In the Lagos-Wright model, in the DM

Introduction

Measurement

Business Cycle Measurement

Consumer and Firm Behavior: the Workleisure Decision and Profit Maximization

A Closed-Economy One-Period Macroeconomic Model

Search and Unemployment

Economic Growth: Malthus and Solow

Income Disparity Among Countries and Endogenous Growth

A Two-Period Model: the Consumptionsavings Decision and Credit Markets

Credit Market Imperfections: Credit Frictions, Financial Crises, and Social Security

A Real Intertemporal Model With Investment

Money, Banking, Prices, and Monetary Policy

Business Cycle Models With Flexible Prices and Wages

New Keynesian Economics: Sticky Prices

Inflation: Phillips Curves and Neo-Fisherism

International Trade in Goods and Assets

Money, Inflation, and Banking: a Deeper Look

Filters