A02 Midterm Exam Oct 12 Solutions 2

A02 Midterm Exam Oct 12 Solutions 2 - ECON 305 A02 Midterm...

Info iconThis preview shows pages 1–40. Sign up to view the full content.

View Full Document Right Arrow Icon
ECON 305 A02 Midterm Exam Sopinka October 12, 2011 Duration: 50 minutes Name: _______________________ Student ID: ____________________________ Answer all questions on the exam paper. Make sure your responses are clear, complete and legible. The exam consists of 20 multiple choice questions and 3 short answer questions. The multiple choice questions are worth 1 mark each and the short answer questions are worth 10 marks. The exam is worth a total of 50 marks. Allocate your time accordingly. Multiple Choice [1 mark each; 20 marks total] Choose the one alternative that best completes the statement or answers the question.  1
Background image of page 1

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

View Full DocumentRight Arrow Icon
Money is  defined as 
Background image of page 2
1) 
Background image of page 3

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

View Full DocumentRight Arrow Icon
_______ 
Background image of page 4
anything that is  generally accepted  in payment for  goods and  services or in the  repayment of debt. 
Background image of page 5

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

View Full DocumentRight Arrow Icon
bills of exchange. 
Background image of page 6
the unrecognized  liability of  governments. 
Background image of page 7

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

View Full DocumentRight Arrow Icon
a risk - free  repository of  spending power.   
Background image of page 8
Which of  the  following  are true  statement s? 
Background image of page 9

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

View Full DocumentRight Arrow Icon
2) 
Background image of page 10
_______ 
Background image of page 11

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

View Full DocumentRight Arrow Icon
The average price  of goods and  services in an  economy is called  the inflation rate. 
Background image of page 12
Those countries  with the highest  inflation rates are  also the ones with  the highest money  growth rates. 
Background image of page 13

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

View Full DocumentRight Arrow Icon
When the average  price of goods and  services in an  economy  increases, the  inflation rate  increases. 
Background image of page 14
Only A and B of  the above are true  statements.   
Background image of page 15

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

View Full DocumentRight Arrow Icon
Overnight  funds are 
Background image of page 16
3) 
Background image of page 17

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

View Full DocumentRight Arrow Icon
_______ 
Background image of page 18
loans made by  banks to each  other. 
Background image of page 19

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

View Full DocumentRight Arrow Icon
loans made by the  Bank of Canada to  banks. 
Background image of page 20
funds raised by  the federal  government in the  bond market. 
Background image of page 21

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

View Full DocumentRight Arrow Icon
loans made by  banks to the Bank  of Canada.   
Background image of page 22
The  process of  asset  transform ation  refers to  the  conversio n of 
Background image of page 23

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

View Full DocumentRight Arrow Icon
4) 
Background image of page 24
_______ 
Background image of page 25

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

View Full DocumentRight Arrow Icon
risky assets into  safer assets. 
Background image of page 26
B) 
Background image of page 27

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

View Full DocumentRight Arrow Icon
safer assets into  risky liabilities. 
Background image of page 28
safer assets into  risky assets. 
Background image of page 29

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

View Full DocumentRight Arrow Icon
D) 
Background image of page 30
This is the end of the preview. Sign up to access the rest of the document.

This document was uploaded on 12/04/2011.

Page1 / 162

A02 Midterm Exam Oct 12 Solutions 2 - ECON 305 A02 Midterm...

This preview shows document pages 1 - 40. Sign up to view the full document.

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