Money and the Banking System
1)
The supply of money in the economy is determined primarily by:
1)
_______
A)
the banking system.
B)
the actions of the Federal Reserve.
C)
consumers.
D)
both A and B.
2)
In the ________ increases in the supply of money will ________.
2)
_______
A)
short run; raise total demand and output
B)
long run; raise total demand and output
C)
long run; lead to higher prices
D)
both A and C
3)
Examples of money are:
3)
_______
A)
a traveler's check.
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, B)
a check
C)
a dollar bill.
D)
all of the above
4)
Which of the following is not money?
4)
_______
A)
a check
B)
a dollar bill
C)
a quarter
D)
none of the above
5)
Money is:
5)
_______
A)
necessary to conduct economic transactions.
B)
facilitates specialization in production.
C)
anything that is regularly used in economic transactions or exchanges.
D)
anything the government declares to have value.
6)
379
, Which of the following have been used as money?
6)
_______
A)
cigarettes
B)
gold bars
C)
precious stones
D)
all of the above
7)
Which of the following can be used as money?
7)
_______
A)
cigarettes
B)
checks
C)
precious stones
D)
all of the above
8)
Barter transactions will occur only when:
8)
_______
A)
no money exists.
B)
there exists a double coincidence of wants.
380
1)
The supply of money in the economy is determined primarily by:
1)
_______
A)
the banking system.
B)
the actions of the Federal Reserve.
C)
consumers.
D)
both A and B.
2)
In the ________ increases in the supply of money will ________.
2)
_______
A)
short run; raise total demand and output
B)
long run; raise total demand and output
C)
long run; lead to higher prices
D)
both A and C
3)
Examples of money are:
3)
_______
A)
a traveler's check.
378
, B)
a check
C)
a dollar bill.
D)
all of the above
4)
Which of the following is not money?
4)
_______
A)
a check
B)
a dollar bill
C)
a quarter
D)
none of the above
5)
Money is:
5)
_______
A)
necessary to conduct economic transactions.
B)
facilitates specialization in production.
C)
anything that is regularly used in economic transactions or exchanges.
D)
anything the government declares to have value.
6)
379
, Which of the following have been used as money?
6)
_______
A)
cigarettes
B)
gold bars
C)
precious stones
D)
all of the above
7)
Which of the following can be used as money?
7)
_______
A)
cigarettes
B)
checks
C)
precious stones
D)
all of the above
8)
Barter transactions will occur only when:
8)
_______
A)
no money exists.
B)
there exists a double coincidence of wants.
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