Question 1

Representative full-bodied money is paper money fully backed by a precious metal such as gold.

Accepted Answer

A) True 
 B)False

Question 2

If the money supply for an economy is $3 trillion and GDP is $10 trillion,then the velocity of money is:

Accepted Answer

A) $3.33 trillion 
B) $13.0 trillion 
C) $7.0 trillion 
D) $30 trillion 
A) $3.33 trillion 
B) $13.0 trillion 
C) $7.0 trillion 
D) $30 trillion

Question 3

Fiat money is a form of credit money.

Accepted Answer

A) True 
 B)False

Question 4

Fiat money is:

Accepted Answer

A) representative full-bodied money 
B) full-bodied money 
C) legal tender proclaimed to be money by law 
D) all of the above 
A) representative full-bodied money 
B) full-bodied money 
C) legal tender proclaimed to be money by law 
D) all of the above

Question 5

If annual GDP is $100 billion and the MS is $20 billion,the velocity of money (VM)is ________.

Accepted Answer

A) 2 
B) 5 
C) 20 
D) 50 
E) none of the above 
A) 2 
B) 5 
C) 20 
D) 50 
E) none of the above

Question 6

____________ accounts are increasingly used to make direct deposits to,and payments from,checkable deposit accounts.

Accepted Answer

A) single balance 
B) money market 
C) automatic transfer service (ATS) 
D) capital market 
E) none of the above 
A) single balance 
B) money market 
C) automatic transfer service (ATS) 
D) capital market 
E) none of the above

Question 7

_____________ is a short-term unsecured promissory note issued by a high credit-quality corporation with maturities of one to three months in length with an active secondary money.

Accepted Answer

A) A negotiable certificate of deposit (NC
D)  
B) A repurchase agreement 
C) Commercial paper 
D) Government bond 
E) none of the above 
A) A negotiable certificate of deposit (NC
D)  
B) A repurchase agreement 
C) Commercial paper 
D) Government bond 
E) none of the above

Question 8

Large time deposits (over $100,000)are included in which of the following money supply definitions?

Accepted Answer

A) M1 
B) M2 
C) M3 
D) all of the above 
A) M1 
B) M2 
C) M3 
D) all of the above

Representative full-bodied money is paper money fully backed by a precious metal such as gold.

If the money supply for an economy is $3 trillion and GDP is $10 trillion,then the velocity of money is:

Fiat money is a form of credit money.

Fiat money is:

If annual GDP is $100 billion and the MS is $20 billion,the velocity of money (VM)is ________.

____________ accounts are increasingly used to make direct deposits to,and payments from,checkable deposit accounts.

_____________ is a short-term unsecured promissory note issued by a high credit-quality corporation with maturities of one to three months in length with an active secondary money.

Large time deposits (over $100,000)are included in which of the following money supply definitions?

The Financial Environment

Banks and Other Financial Institutions

Federal Reserve System

Policy Makers and the Money Supply

International Finance and Trade

Savings and Investment Process

Interest Rates

Time Value of Money

Bonds and Stocks: Characteristics and Valuation

Securities Markets

Financial Return and Risk Concepts

Business Organization and Financial Data

Financial Analysis and Long-Term Financial Planning

Managing Working Capital

Short-Term Business Financing

Capital Budgeting Analysis

Capital Structure and the Cost of Capital

Filters

Exam 2: Money and the Monetary System

Representative full-bodied money is paper money fully backed by a precious metal such as gold.

If the money supply for an economy is $3 trillion and GDP is $10 trillion,then the velocity of money is:

Fiat money is a form of credit money.

Fiat money is:

If annual GDP is $100 billion and the MS is $20 billion,the velocity of money (VM)is ________.

____________ accounts are increasingly used to make direct deposits to,and payments from,checkable deposit accounts.

_____________ is a short-term unsecured promissory note issued by a high credit-quality corporation with maturities of one to three months in length with an active secondary money.

Large time deposits (over $100,000)are included in which of the following money supply definitions?

The Financial Environment

Banks and Other Financial Institutions

Federal Reserve System

Policy Makers and the Money Supply

International Finance and Trade

Savings and Investment Process

Interest Rates

Time Value of Money

Bonds and Stocks: Characteristics and Valuation

Securities Markets

Financial Return and Risk Concepts

Business Organization and Financial Data

Financial Analysis and Long-Term Financial Planning

Managing Working Capital

Short-Term Business Financing

Capital Budgeting Analysis

Capital Structure and the Cost of Capital

Filters