Question 1

A problem with the barter system is that it relies on:

Accepted Answer

A)   High quality goods
B)   Low cost goods
C)   The double coincidence of wants
D)   None of the aboveE) A) and B)
F) A) and C) C

Question 2

The demand for money does NOT include:

Accepted Answer

A)   The transaction motive
B)   The precautionary motive
C)   The contractionary motive
D)   The speculative motiveE) None of the above
F) A) and B)

Question 3

Lower interest rates are likely to lead to:

Accepted Answer

A)   Less consumption
B)   Higher savings
C)   Less investment
D)   A fall in the exchange rateE) A) and B)
F) A) and C) D

Question 4

Monetarists believe that the main cause of inflation is excessive growth of money demand.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following is not a role of a central bank such as the Bank of England.?

Accepted Answer

A)   Manage government finances.
B)   Be the banker to commercial banks.
C)   Hold foreign exchange reserves.
D)   Be the banker to the general public.E) B) and C)
F) None of the above

Question 6

The interest rate in the UK is set by the _____________________ Policy Committee

Accepted Answer

The answer of The interest rate in the UK is...

Question 7

The size of the money multiplier depends mainly on:

Accepted Answer

A)   The reserve ratio
B)   The marginal propensity to consume
C)   The marginal propensity to save
D)   The accelerator ratioE) A) and B)
F) A) and C)

Question 8

The interest rate is

Accepted Answer

A)   The price of one currency in terms of another
B)   The cost of borrowing money
C)   The cost of shares
D)   The proportion of households which have a mortgageE) B) and C)
F) All of the above B

Question 9

What is the interest rate?

Accepted Answer

A)   The interest rate is the cost of borrowing money.
B)   The interest rate is the cost of living.
C)   The interest rate measures the standard of living.
D)   The interest rate measures the value of the currency.E) A) and B)
F) A) and C)

Question 10

In the liquidity trap an increase in the money supply has no impact on the interest rate.

Accepted Answer

A) True 
 B)False

Question 11

The most liquid financial asset is?

Accepted Answer

A)   Money in a 30 day notice account
B)   Cash
C)   Shares
D)   Government bondE) A) and D)
F) All of the above

Question 12

The Fisher Equation of Exchange is MT=PV

Accepted Answer

A) True 
 B)False

Question 13

Which of the following is not true about the Bank of England?

Accepted Answer

A)   The Bank of England is the banker to the government.
B)   The Bank of England is the UK's largest high street bank.
C)   The Bank of England manages the government's finances.
D)   The Bank of England controls the issue of notes and coins.E) All of the above
F) None of the above

Question 14

A merchant bank

Accepted Answer

A)   Lends mainly to retailers
B)   Lends mainly to government
C)   Lends mainly to businesses
D)   Lends mainly to high street saversE) A) and B)
F) None of the above

Exam 27: Money

A problem with the barter system is that it relies on:

Correct Answer
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C

The demand for money does NOT include:

Correct Answer
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Lower interest rates are likely to lead to:

Correct Answer
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D

Monetarists believe that the main cause of inflation is excessive growth of money demand.

Correct Answer
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Which of the following is not a role of a central bank such as the Bank of England.?

Correct Answer
verified

The interest rate in the UK is set by the _____________________ Policy Committee

Correct Answer
verified

The size of the money multiplier depends mainly on:

Correct Answer
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The interest rate is

Correct Answer
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B

What is the interest rate?

Correct Answer
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In the liquidity trap an increase in the money supply has no impact on the interest rate.

Correct Answer
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The most liquid financial asset is?

Correct Answer
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The Fisher Equation of Exchange is MT=PV

Correct Answer
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Which of the following is not true about the Bank of England?

Correct Answer
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A merchant bank

Correct Answer
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Exam 27: Money

A problem with the barter system is that it relies on:

Correct AnswerverifiedC

The demand for money does NOT include:

Correct AnswerverifiedShow Answer

Lower interest rates are likely to lead to:

Correct AnswerverifiedD

Monetarists believe that the main cause of inflation is excessive growth of money demand.

Correct AnswerverifiedShow Answer

Which of the following is not a role of a central bank such as the Bank of England.?

Correct AnswerverifiedShow Answer

The interest rate in the UK is set by the _____________________ Policy Committee

Correct AnswerverifiedShow Answer

The size of the money multiplier depends mainly on:

Correct AnswerverifiedShow Answer

The interest rate is

Correct AnswerverifiedB

What is the interest rate?

Correct AnswerverifiedShow Answer

In the liquidity trap an increase in the money supply has no impact on the interest rate.

Correct AnswerverifiedShow Answer

The most liquid financial asset is?

Correct AnswerverifiedShow Answer

The Fisher Equation of Exchange is MT=PV

Correct AnswerverifiedShow Answer

Which of the following is not true about the Bank of England?

Correct AnswerverifiedShow Answer

A merchant bank

Correct AnswerverifiedShow Answer

Correct Answer
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C

Correct Answer
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D

Correct Answer
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B

Correct Answer
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Correct Answer
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