Chapter_24 - YourResultsfor:"SelfStudyQuiz" SiteTitle:

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

View Full Document Right Arrow Icon
Your Results for: "Self-Study Quiz" Print this page Site Title: Principles of Economics, Eighth Edition Book Title: Principles of Economics, 8/e Book Author: Case/Fair Location on  Site: Chapter 24 > Self-Study Quiz Date/Time  Submitted: February 8, 2012 at 8:55 AM  (UTC/GMT) Summary of Results 28% Correct  of 40 Scored items: 11 Correct:  28% 29 Incorrect:  73% 3 questions not scored. 40 scored questions. More information about scoring 1. Fill in the blanks. Firms and the  government borrow funds by issuing  ____________, and pay interest to  firms and households that  ____________ their debt. Your Answer:   Correct. Firms and the government borrow funds by issuing bonds, and they pay interest  to the firms and households (the lenders) that purchase those bonds. 2. If a $1,000 bond pays $100 per year,  the interest rate on the bond is  calculated as follows:  Your Answer:   Correct. The interest rate equals the amount of interest received per year divided by the  amount of the loan. 3. The amount of money you wish to  hold, or your demand for money, 
Background image of page 1

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

View Full DocumentRight Arrow Icon
depends on: Your Answer: How much wealth you would like. Correct Answer: How much of your financial assets money.   Incorrect. When we speak of demand for money, we are concerned with how much of  your financial assets you want to hold in the form of money. 4. Which of the following motives for  holding money emphasizes the  usefulness of money for buying  things? Your Answer: The speculative motive. Correct Answer: The transactions motive.   Incorrect. This motive explains how, when the interest rate is high, people want to take  advantage of high return on bonds, thus hold less money. They wish (or speculate) to  hold bonds when interest rates are high with the hope of selling them when interest rates  fall. 5. In our analysis of the demand for  money and the optimal balance, we  assume that: Your Answer: Spending is spread out over time, uniform rate. Correct Answer: All of the above.   Incorrect. This answer is correct; however, other choices are also correct.
Background image of page 2
The mismatch between the timing of  money inflow and the timing of  money outflow is called: Your Answer: The transaction motive. Correct Answer: The nonsynchronization of income   Incorrect. The transaction motive states that the main reason for holding money is to buy  things. 7. Jim receives $1,200 per month (30  days) and spends $40 each day.  What is his average money  balance?
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.

This note was uploaded on 02/09/2012 for the course ECONOMY 101 taught by Professor Zaier during the Spring '11 term at Qatar University.

Page1 / 16

Chapter_24 - YourResultsfor:"SelfStudyQuiz" SiteTitle:

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