Practice questions Set 1 - 2009

Practice questions Set 1 - 2009 - RSM 100 Introduction to...

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RSM 100 – Introduction to Commerce September, 2009 Practice Questions - Set No. 1 – on lectures from September 9 and 16. The following are examples of questions asked on previous tests. Choose the best answer – there is no penalty for guessing. Answers will be posted in 1-2 weeks. 1. Which of the following is NOT a function (or use) of Money: a. it is an input to the production of other goods b. it is used to replace barter c. it is used to record expenses, revenues or assets d. it is used to store purchasing power for a later use e. none of the above – they are all functions of Money 2. In the present Canadian monetary system gold serves what purpose? a. it backs up the Canadian dollar in international transactions but not in domestic transactions b. it backs up the Canadian dollar in domestic transactions only c. it backs up the Canadian dollar in both domestic and international transactions d. it makes up a small part of the Bank of Canada’s reserves e. it has no role 3. In the gold standard system of the late Middle Ages, the interest rate would be lower: a. the less gold there was b. the more borrowers wished to borrow c. the more opportunities there were for trade expeditions d. the more soldiers the local ruler wished to hire for wars e. the less that gold owners used their gold for buying goods 4. If Velocity (V) is constant, a rise in the real value of transactions (T) means that: a. The money supply and price level must rise b. The money supply and price level must fall
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Practice questions Set 1 - 2009 - RSM 100 Introduction to...

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