Q5_f07 - Temple University Economics 1101 Fall, 2007 Quiz...

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Temple University Economics 1101 Fall, 2007 Quiz #5 Name __________________________________ A. Multiple Choice (2 points each) Please circle the most appropriate response. 1. The innovation of money helped economies prosper because it a. Reduced transactions costs b. Reduced people’s reliance on the government c. Led to the development of prices and hence of free markets d. Sparked technological progress by reducing interest rates 2. According to our definition, milk would not make good money because it is not a. A unit of account b. An index of commodities c. A store of value d. A medium of exchange 3. A fiat money system exists when a nation’s currency a. Is linked to the quantity of gold in the nation’s banking system b. Is not linked to anything c. Can be printed independently by individual banks d. Is set for it by an international panel 4. The Fed prefers lowers the discount rate when it wants to a. Shift the supply curve of loanable funds to the left b. Reduce the amount that homebuyers borrow for mortgages
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This note was uploaded on 04/28/2011 for the course ECON 1101 taught by Professor Rappoport during the Fall '08 term at Temple.

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Q5_f07 - Temple University Economics 1101 Fall, 2007 Quiz...

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