1 / 81

MONEY

MONEY. 3. Money with intrinsic value is called a. local money b. fiat money c. legal money d. bullion money e. commodity money . 4. The most liquid form of money is a. certificates of deposits b. checking accounts c. savings accounts d. time deposits e. currency .

jalena
Download Presentation

MONEY

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. MONEY

  2. 3. Money with intrinsic value is called • a. local money • b. fiat money • c. legal money • d. bullion money • e. commodity money

  3. 4. The most liquid form of money is • a. certificates of deposits • b. checking accounts • c. savings accounts • d. time deposits • e. currency

  4. 8. The equation of exchange is • a. MQ = PV • b. MVP = Q • c. M = VPQ • d. MP = VQ • e. MV = PQ

  5. 1. Which of the following is an example of fiat money? • a. euros • b. gold • c. silver • d. salt • e. cigarettes

  6. 2. The breakdown of the American dollar into quarters, dimes, and pennies illustrates which characteristic of money? • a. scarcity • b. acceptability • c. durability • d. divisibility • e. portability

  7. 3. The ease with which an asset can be converted into the economy's medium of exchange is referred to as its • a. transferability • b. exchangeability • c. liquidity • d. acceptability • e. durability

  8. 6. Money used to buy a car serves as a(n) • a. unit of value • b. commodity • c. store of value • d. unit of account • e. medium of exchange

  9. 7. Money in the bank serves as a(n) • a. unit of account • b. medium of exchange • c. commodity • d. unit of value • e. store of value

  10. 8. A watermelon is valued at 2 dollars. This represents money's function as a(n) • a. commodity • b. unit of account • c. unit of value • d. medium of exchange • e. store of value

  11. 9. Money must be able to be used in multiple transactions without wearing out. This represents which characteristic of money? • a. acceptability • b. durability • c. scarcity • d. portability • e. divisibility

  12. 10. Money must be easy to transport. This represents which characteristic of money? • a. divisibility • b. acceptability • c. scarcity • d. durability • e. portability

  13. TRUE or FALSE • F • T • T • F • T • 11. The United States Dollar is an example of commodity money. • 12. Fiat money is created by government decree. • 13. Money replaced barter, which required a double coincidence of wants. • 14. United States Dollars are backed by gold. • 15. Interest is the cost of using money or credit.

  14. 4. The direct exchange of goods for other goods is known as • a. commerce • b. barter • c. finance • d. retail • e. wholesale

  15. 5. Money facilitates trade by removing the need for • a. voluntary exchange • b. a double coincidence of wants • c. property rights • d. supply and demand • e. markets

  16. 6. Barter is an example of a • a. store of value • b. means of exchange • c. unit of account • d. means of account • e. unit of value

  17. GDP

  18. 5. Which of the following is not counted in GDP? • a. the purchase of ten shares of Google stock • b. the government's purchase of aircraft carriers • c. the purchase of a haircut • d. the purchase of new fashionable running shoes • e. the construction of a manufacturing plant

  19. 11. Which category of GDP is the government's payment of a Social Security check counted in? • a. net exports • b. government expenditures • c. investment • d. The government's payment of a Social Security check is NOT counted in GDP. • e. consumption

  20. 6. Which of the following statements is NOT correct? • a. Dave's purchase of cocaine is not counted in GDP. • b. McDonalds’ purchase of hamburger buns is counted in consumption. • c. Sven the Swede's purchase of American made jeans is counted in net exports. • d. The Defense Department's purchase of a tank is counted in government purchases. • e. General Motors’ purchase of machinery is counted in investment.

  21. 9. Which category makes up the largest share of the United States’ GDP? • a. net exports • b. government purchases • c. investment • d. net imports • e. consumption

  22. 12. Which category of GDP is the purchase of a new home counted in? • a. net exports • b. government expenditures • c. investment • d. consumption • e. The purchase of a new home is NOT counted in GDP.

  23. 10. The factors of production flow from • a. firms to households via the product market • b. households to firms via the product market • c. households to firms via the government • d. households to firms via the factor market • e. firms to households via the factor market

  24. 11. Goods and services flow from • a. firms to households via the factor market • b. households to firms via the government • c. firms to households via the product market • d. households to firms via the factor market • e. households to firms via the product market

  25. 12. The money paid to firms via the product market is called • a. wages • b. profit • c. revenue • d. taxes • e. income

  26. 13. The money paid to households via the factor market is called • a. wages • b. profit • c. income • d. taxes • e. revenue

  27. 14. The money paid by households and firms to the government is called • a. profit • b. taxes • c. revenue • d. wages • e. income

  28. 15. Which of the following represents an injection into the circular flow model? • a. rent • b. imports • c. exports • d. savings • e. taxes

  29. LABOR

  30. 7. Structural unemployment is caused by • a. skills mismatch • b. undervalued currency • c. economic downturn • d. high inflation • e. time-lag between jobs

  31. 8. Frictional unemployment is caused by • a. skills mismatch • b. undervalued currency • c. high inflation • d. time-lag between jobs • e. economic downturn

  32. 9. Cyclical unemployment is caused by • a. time-lag between jobs • b. undervalued currency • c. economic downturn • d. high inflation • e. skills mismatch

  33. 11. Steve is laid off during a recession. Steve is • a. frictionally unemployed • b. structurally unemployed • c. seasonally unemployed • d. cyclically unemployed • e. technologically unemployed

  34. 3. Machines took Dan the factory worker's job. Dan is • a. seasonally unemployed • b. frictionally unemployed • c. structurally unemployed • d. technologically unemployed • e. cyclically unemployed

  35. 1. Steve recently quit his job as a bicycle repairman for greater monetary opportunities as a car salesman. Steve is • a. technologically unemployed • b. cyclically unemployed • c. seasonally unemployed • d. structurally unemployed • e. frictionally unemployed

  36. 2. Dave, a financial analyst, was laid off during an economic downturn. Dave is • a. seasonally unemployed • b. structurally unemployed • c. cyclically unemployed • d. frictionally unemployed • e. technologically unemployed

  37. 13. An abnormally high rate of which type of unemployment indicates a problem in the economy? • a. seasonal • b. cyclical • c. frictional • d. structural • e. technological

  38. 4. Jill’s snow cone parlor shuts down in December. Jill is • a. seasonally unemployed • b. structurally unemployed • c. cyclically unemployed • d. technologically unemployed • e. frictionally unemployed

  39. 5. Which of the following is not counted in the natural rate of unemployment and indicates a problem in the economy? • a. cyclical unemployment • b. technological unemployment • c. frictional unemployment • d. seasonal unemployment • e. structural unemployment

  40. 6. In the United States, the natural rate of unemployment is approximately • a. 2% • b. 15% • c. 0% • d. 10% • e. 5%

  41. 7. Which of the following groups is part of the labor force? • a. people in prison • b. people counted in the unemployment rate • c. people who are retired • d. people under sixteen • e. people in the army

  42. 16. Jim, discouraged by his inability to hold down a job, has given up looking for work. Jim is counted in the unemployment rate. • F

  43. 7. If the reserve ratio is 10%, a bank with deposits of $500 can loan out • a. $350 • b. $100 • c. $250 • d. $50 • e. $450

  44. 8. If the reserve ratio is 20%, the money multiplier is • a. 2 • b. 50 • c. 5 • d. 20 • e. 10

  45. 9. If the reserve ratio is 5%, how much money will be created in the economy by a deposit of $100? • a. $100 • b. $4000 • c. $2000 • d. $1000 • e. $500

  46. Monetary & Fiscal Policy

  47. 1. Modern fiscal policy results from the work of • a. Jean Baptiste Say • b. Arthur Laffer • c. Thomas Malthus • d. Arthur Okun • e. John Maynard Keynes

  48. 2. Which policy measure would a Keynesian economist support to combat recession? • a. deficit spending • b. balanced budget • c. decreasing wages • d. doing nothing • e. printing money

  49. 3. The goal of fiscal policy is to influence • a. aggregate demand • b. interest rates • c. the money supply • d. net exports • e. aggregate supply

More Related