tb03 - Chapter 3 What Is Money? T Multiple Choice 1) There...

Info iconThis preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
Chapter 3 What Is Money? T Multiple Choice 1) There is no single precise measure of money or the money supply for economists because (a) the government considers money supply statistics to be confidential and refuses to publish them. (b) deciding what is generally accepted in payment for goods and services or in the repayment of debt is difficult to determine. (c) economists cannot agree if currency should be considered money. (d) of each of the above. (e) of both (a) and (b) of the above. Answer: B Question Status: Previous Edition 2) Economists find no completely satisfactory way to measure money because (a) money supply statistics are a state secret. (b) the Federal Reserve does not employ or report different measures of the money supply. (c) the “moneyness” or liquidity of an asset is a matter of degree. (d) economists find disagreement interesting and refuse to agree for ideological reasons. Answer: C Question Status: Previous Edition 3) Currency includes (a) paper money and coins. (b) paper money, coins, and checks. (c) paper money and checks. (d) paper money, coins, checks, and savings deposits. Answer: A Question Status: Previous Edition 4) The difference between money and income is that (a) money is a flow and income is a stock. (b) money is a stock and income is a flow. (c) there is no difference—money and income are both stocks. (d) there is no difference—money and income are both flows. Answer: B Question Status: Previous Edition
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Chapter 3 What Is Money? 59 5) It is true that (a) income and wealth are both stocks. (b) money and income are both stocks. (c) income is a flow and wealth is a stock. (d) money and wealth are both flows. (e) money and income are both flows. Answer: C Question Status: New 6) When people say, “Bill Gates sure is rich, he has a lot of money,” they probably mean that Bill Gates (a) has a large checking account balance. (b) is quite wealthy. (c) has a relatively high income. (d) all of the above. (e) only (a) and (b) of the above. Answer: D Question Status: Previous Edition 7) An individual’s annual salary is her (a) money. (b) income. (c) wealth. (d) liabilities. (e) assets. Answer: B Question Status: New 8) A person’s house is part of her (a) money. (b) income. (c) liabilities. (d) wealth. (e) all of the above. Answer: D Question Status: New 9) A person’s checking deposits are part of her (a) money. (b) income. (c) wealth. (d) all of the above. (e) only (a) and (c) of the above. Answer: E Question Status: New
Background image of page 2
60 Frederic S. Mishkin • Economics of Money, Banking, and Financial Markets, Seventh Edition 10) A penny collection is (a) money. (b) income. (c) wealth. (d) all of the above. (e) only (a) and (c) of the above. Answer: E
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 4
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 33

tb03 - Chapter 3 What Is Money? T Multiple Choice 1) There...

This preview shows document pages 1 - 4. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online