FINAL EXAM

FINAL EXAM - FINAL EXAM - fall semester User ID: xefri...

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Unformatted text preview: FINAL EXAM - fall semester User ID: xefri Attempt: 1 / 1 Out of: 100 Started: Dec 18, 2003 09:25 Finished: Dec 18, 2003 11:06 Time spent: 1 hr., 40 min., 31 sec. Student finished 1 hr., 19 min., 29 sec. ahead of the 180 min. time limit. Return to Scores-------------------------------------------------------------------------------- Question 1 (2 points) Which of the following is a characteristic of money? 0.0% 1. indivisible 0.0% 2. perishable 100.0% 3. portable 0.0% 4. all of the above Score 2 / 2-------------------------------------------------------------------------------- Question 2 (2 points) From the definitions of M1 and M2, we know that 0.0% 1. M1 is always larger than M2. 100.0% 2. M2 is always larger than M1. 0.0% 3. M1 and M2 are always equal. 0.0% 4. M1 is sometimes larger than M2, and sometimes smaller than M2. Score 2 / 2-------------------------------------------------------------------------------- Question 3 (2 points) One common problem with commodity money is that 0.0% 1. it has little intrinsic value. 0.0% 2. it is not useful as a unit of account. 100.0% 3. it may not be divisible. 0.0% 4. gold is in short supply. Score 2 / 2-------------------------------------------------------------------------------- Question 4 (2 points) If the money supply increases, then interest rates will rise. 0.0% 1. True 100.0% 2. False Score 2 / 2-------------------------------------------------------------------------------- Question 5 (2 points) Suppose you will receive an inheritance in 20 years worth $5 million. If the interest rate is 8 percent, the present value of the inheritance is 100.0% 1. $1.075 million. 0.0% 2. $2 million. 0.0% 3. $5 million. 0.0% 4. $40 million. Score 2 / 2-------------------------------------------------------------------------------- Question 6 (2 points) The graph below shows the demand for money. The initial interest rate is io. Which graph correctly depicts a rise in interest rates above the initial level io? 0.0% 1. 100.0% 2. 0.0% 3. 0.0% 4. Score 0 / 2-------------------------------------------------------------------------------- Question 7 (2 points) Suppose there is an increase in income. Then we should expect 0.0% 1. the interest rate to fall as people want to spend more money. 100.0% 2. the interest rate to rise as the demand for money shifts to the right. 0.0% 3. the money supply curve to shift to the right as people spend more money. 0.0% 4. none of the above. Score 2 / 2-------------------------------------------------------------------------------- Question 8 (2 points) Financial intermediaries are institutions that 0.0% 1. set interest rates. 100.0% 2. transfer funds in the form of loans from savers to investors....
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This note was uploaded on 06/18/2011 for the course ECON 101 taught by Professor Vicek during the Spring '11 term at Parkland.

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FINAL EXAM - FINAL EXAM - fall semester User ID: xefri...

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