Question 1

Eurodollars are included in

Accepted Answer

A) M1 
B) M2 
C) both the above 
D) neither the above 
A) M1 
B) M2 
C) both the above 
D) neither the above

Question 2

One reason the Fed defines so many measures of money is that economists have different opinions as to which measure is most consistently related to spending and other economic activity.

Accepted Answer

A) True 
 B)False

Question 3

_____________ believe that when the money supply exceeds the amount of money demanded, the public will spend more rapidly, causing real economic activity or prices to rise.They also believe that a too-rapid rate of growth in the money supply will ultimately result in rising prices or inflation because excess money will be used to bid up the prices of existing goods.

Accepted Answer

A) Monetarists 
B) Keynesians 
C) Neo Classicalists 
D) none of the above 
A) Monetarists 
B) Keynesians 
C) Neo Classicalists 
D) none of the above

Question 4

____________ include the direct ownership of land, buildings or homes, equipment, inventories, durable goods, and even precious metals.

Accepted Answer

A) financial assets 
B) real assets 
C) government investments 
D) all of the above 
E) none of the above 
A) financial assets 
B) real assets 
C) government investments 
D) all of the above 
E) none of the above

Question 5

Currently, the international monetary system can best be described as a managed floating exchange rate system.

Accepted Answer

A) True 
 B)False

Question 6

"Continentals" were denominated in dollars and were backed by gold.

Accepted Answer

A) True 
 B)False

Question 7

An increase in the general overall prices of goods and services that is not offset by increases in the quality of those goods and services is the definition for:

Accepted Answer

A) liquidity 
B) inflation 
C) full-bodied goods and services 
D) store of purchasing power 
A) liquidity 
B) inflation 
C) full-bodied goods and services 
D) store of purchasing power

Question 8

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

Accepted Answer

A) True 
 B)False

Question 9

Historically speaking, ___________ taken as a group has/have generally been a surplus economic unit in the past:

Accepted Answer

A) individuals 
B) business 
C) government 
D) a and c 
E) none of the above 
A) individuals 
B) business 
C) government 
D) a and c 
E) none of the above

Question 10

Representative full-bodied money consists of paper money fully backed by a precious metal.

Accepted Answer

A) True 
 B)False

Question 11

The U.S.bimetallic standard was based on:

Accepted Answer

A) gold and platinum 
B) silver and gold 
C) gold and copper 
D) silver and copper 
A) gold and platinum 
B) silver and gold 
C) gold and copper 
D) silver and copper

Question 12

Which of the following statements is most correct?

Accepted Answer

A) Both gold and silver have now been completely removed from any monetary role in the U.S.economy. 
B) Savings deposits and small time deposits at depository institutions constitute part of the M1 money supply definition. 
C) Fiat money is gold coins issued by central banks under authority of the government. 
D) The monetary system of the United States today is based on a dollar standard, and the dollar can be converted into gold. 
A) Both gold and silver have now been completely removed from any monetary role in the U.S.economy. 
B) Savings deposits and small time deposits at depository institutions constitute part of the M1 money supply definition. 
C) Fiat money is gold coins issued by central banks under authority of the government. 
D) The monetary system of the United States today is based on a dollar standard, and the dollar can be converted into gold.

Question 13

In the U.S., the dollar was defined in terms of gold until the:

Accepted Answer

A) present time 
B) 1980s 
C) 1970s 
D) 1960s 
A) present time 
B) 1980s 
C) 1970s 
D) 1960s

Question 14

_______________________ is the sum of an individual's money, real assets, and financial assets or claims against others less the individual's debt obligations.

Accepted Answer

A) Portfolio value 
B) Individual net worth 
C) Personal wealth 
D) Investment value 
E) None of the above 
A) Portfolio value 
B) Individual net worth 
C) Personal wealth 
D) Investment value 
E) None of the above

Question 15

Any circulating money which has little real value relative to its monetary value is called:

Accepted Answer

A) credit money 
B) representative full-bodied money 
C) full-bodied money 
D) all of the above 
A) credit money 
B) representative full-bodied money 
C) full-bodied money 
D) all of the above

Question 16

M1 money supply consists of currency, travelers' checks, demand deposits, and other checkable deposits.

Accepted Answer

A) True 
 B)False

Question 17

All of the following are important components of a financial system except:

Accepted Answer

A) government and private policy makers 
B) a monetary system 
C) the international monetary fund 
D) financial institutions and markets 
A) government and private policy makers 
B) a monetary system 
C) the international monetary fund 
D) financial institutions and markets

Question 18

Barter involves the exchange of:

Accepted Answer

A) goods for gold 
B) goods for silver 
C) gold for silver 
D) goods and services 
A) goods for gold 
B) goods for silver 
C) gold for silver 
D) goods and services

Question 19

Which of the following statements is false?

Accepted Answer

A) Legal tender is money backed only by government credit. 
B) Credit money represents any circulating medium which has little real value relative to its monetary value. 
C) The Monetary Act of 1792 resulted in an early monetary system that relied almost exclusively on the use of foreign coins. 
D) All of the above statements are correct. 
A) Legal tender is money backed only by government credit. 
B) Credit money represents any circulating medium which has little real value relative to its monetary value. 
C) The Monetary Act of 1792 resulted in an early monetary system that relied almost exclusively on the use of foreign coins. 
D) All of the above statements are correct.

Question 20

Which of the following statements about L is not true?

Accepted Answer

A) L is the broadest measure of money available to the public 
B) L includes commercial paper 
C) L includes mortgages 
D) All of the above statements are correct. 
A) L is the broadest measure of money available to the public 
B) L includes commercial paper 
C) L includes mortgages 
D) All of the above statements are correct.

Eurodollars are included in

One reason the Fed defines so many measures of money is that economists have different opinions as to which measure is most consistently related to spending and other economic activity.

____________ include the direct ownership of land, buildings or homes, equipment, inventories, durable goods, and even precious metals.

Currently, the international monetary system can best be described as a managed floating exchange rate system.

"Continentals" were denominated in dollars and were backed by gold.

An increase in the general overall prices of goods and services that is not offset by increases in the quality of those goods and services is the definition for:

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

Historically speaking, ___________ taken as a group has/have generally been a surplus economic unit in the past:

Representative full-bodied money consists of paper money fully backed by a precious metal.

The U.S.bimetallic standard was based on:

Which of the following statements is most correct?

In the U.S., the dollar was defined in terms of gold until the:

_______________________ is the sum of an individual's money, real assets, and financial assets or claims against others less the individual's debt obligations.

Any circulating money which has little real value relative to its monetary value is called:

M1 money supply consists of currency, travelers' checks, demand deposits, and other checkable deposits.

All of the following are important components of a financial system except:

Barter involves the exchange of:

Which of the following statements is false?

Which of the following statements about L is not true?

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

Eurodollars are included in

One reason the Fed defines so many measures of money is that economists have different opinions as to which measure is most consistently related to spending and other economic activity.

____________ include the direct ownership of land, buildings or homes, equipment, inventories, durable goods, and even precious metals.

Currently, the international monetary system can best be described as a managed floating exchange rate system.

"Continentals" were denominated in dollars and were backed by gold.

An increase in the general overall prices of goods and services that is not offset by increases in the quality of those goods and services is the definition for:

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

Historically speaking, ___________ taken as a group has/have generally been a surplus economic unit in the past:

Representative full-bodied money consists of paper money fully backed by a precious metal.

The U.S.bimetallic standard was based on:

Which of the following statements is most correct?

In the U.S., the dollar was defined in terms of gold until the:

_______________________ is the sum of an individual's money, real assets, and financial assets or claims against others less the individual's debt obligations.

Any circulating money which has little real value relative to its monetary value is called:

M1 money supply consists of currency, travelers' checks, demand deposits, and other checkable deposits.

All of the following are important components of a financial system except:

Barter involves the exchange of:

Which of the following statements is false?

Which of the following statements about L is not true?

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