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Unformatted text preview: award: 1 0 out of ..... immflflmemmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm. Money: r and wealth are the same thing. r can be used interchangeablywith income. #- is used in transactions only when the agents know and trust each other. e_. r- can be any assetwidely accepted as a means ofpayment or medium of exchange. Multiple Choice Section: Money and How We Use It award: 2- flout of ............... .RHMammmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm When a small child puts money into a piggy panic, the concept being illustrated is: a_ r money as a store ofvalue. r barlei’s need for a double coincidence ofwants. r- money as a means ofpayment. re money as a unit ofaccount. HultipleChoice Section:l-iloney and HowWe Uselt ow a rd: 3- {1- out of ............... .flflflsmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm" Money: 4* must be backed by a commodity, such as precious metals like gold or silver. 4* throughout history has always been produced by governments. r must be used in transactions since it is legal tender. a_’ r in most modern economies has no explicit backing. Multiple Choice Section: The Payments System o'erard: 4 {1 out of ..... A one dollar bill is best characterized as: afi 1* fiat money. r' commoditymoney. r' anelectronicpayment. r aloan. Hultiple Choice Section: The Payments System a w a rd: 5 flout of ..... As innovations make otherfinancial instruments increasingly liquid, which characteristic ofmoney becomes less important? r- Means ofpayment 9% {- Store ofvalue {- The interest rate on currency r- Unit ofaccount Multipleroice Section1The Future oflinloney award: 6_ 0 out of 10 Points While we can only speculate on whatwill serve as money in the future, improved computer security would appear to limitthe popularity for common consumer purchases ofwhich current transactions medium? r Debit cards {- Credit cards (- Electronic checks ea (- Currency Mullipleroice Section The Future of Money award' 7 0 out of Which ofthe Fed‘s aggregates. ortheir components. best approximatesthe conceptual definition"’ 04. (- M1 (- M2 r Dnlytne portion ofM2thal Is not Included In M r Only the checking and savings components oflhe aggregates MullipleClIoice Sectiom'illeasuringl'illuney award: 8 ‘1} out of 111} p0' ts Usingt efollowing ata, M | Table Currency held by the public 900 Traveler's Checks 'lEJ Demand Deposits 45f] | OtherCheckahle Deposits | 400 Small time deposits 120E] Savings Deposits and Money Market Deposit Accounts 5000 Retail Money Market Mutual Fund Shares 800 Bank Holdings of Treasury Bills 100E] r 9,350 r' 1,31o afir' 1750 r 900 Multiple Choice Section: Measuring Money award: 9_ 0 out of 10 Points Which statement best summarizes the relationship between money growth and inflation overthe1990—2009 period comparedwith the 1960—1980 period? 1* Money growth and inflation were strongly correlated in both periods. 1* Money growth and inflation are how strongly correlated butwere not earlier. r In neither periodwere money growth and inflation strongly correlated. °_’ 1* The relationship between money growth and inflation has weakened overtime. MultipleChoice Section: Measuring Money award: 10 flout of ............... Use the following data to compute the M2 growth rate during 2009. + 2005 2007 2008 2003 FE] ?5.2 T'EUEE- 825?.5 3544.4 r —3.4%. r 20.3%. (- 103.5%. afi :- 3.5%. MultipleChoioe Section: Measuring Money ...
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This note was uploaded on 09/07/2011 for the course ECO 412 taught by Professor Staff during the Spring '05 term at Kentucky.

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