DOWNLOAD THE Test Bank for Money Banking and Financial Markets 5th Editio
m m m m m m m m m m m
n Cecchetti m
Chapterm02
Moneymand mthemPaymentsmSystem
Multiple-Choicem Questions
1. Whichmof mthemfollowingmwould mnot mbemconsidered mamcharacteristicmof mmoney?
a. It mismamstoremof mvalue.
b. It mismammeansmof mpayment.
c. It mmust mhavemintrinsicmvalue.
d. It mismamunit mof maccount
.mAns:mC
Difficulty:m01mEasy
LearningmObjective:m02-
01mAACSB:mReflectivemThinkingm
Blooms:mRemember
Topic:mMoneymand mHow mWemUsemIt
2. A msocietymwithout manymmoney:
a. could mnevermexchangemgoodsmand/ormservices.
b. would mfind mpeoplemdoingmeverythingmformthemselves.
c. would mhavemtomrelymonmbarter.
d. would mbemmoremefficient msincempeoplemwould mbemmoremself-
sufficient.mAns:mC
Difficulty:m02mMedium
LearningmObjective:m02-
01mAACSB:mReflectivemThin
kingmBlooms:mUnderstand
Topic:mMoneymand mHow mWemUsemIt
3. Themusemof mmoneymmakesmusmmoremefficient mbecause:
a. wemspend mmoremtimemtradingmand mmoremtimemproducing.
b. peoplemcanmspecializeminmwhat mtheymdomwell.
c. withmmoneymwemborrow mless.
d. moneymincreasesminmvaluemover mtime
.mAns:mB
Difficulty:m02mMedium
LearningmObjective:m02-
01mAACSB:mReflectivemThin
kingmBlooms:mUnderstand
Topic:mMoneymand mHow mWemUsemIt
1
© m2017 mby mMcGraw-
Hill mEducation.m This mis mproprietary mmaterialmsolely mformauthorizedminstructormuse.mNotmauthorizedmformsalemormdistributionminmany m man
ner.m This mdocumentmmay mnotmbemcopied,mscanned,mduplicated,mforwarded,mdistributed,mormpostedmonma mwebsite,minmwholemormpart.
mynursytest.store
,DOWNLOAD THE Test Bank for Money Banking and Financial Markets 5th Editio
m m m m m m m m m m m
n Cecchetti m
4. Themunit mof maccount mcharacteristicmof mmoney:
a. makesmit mdifficult mtomcomparemthemrelativempricesmof mgoodsmand mservices.
b. refersmtomhow mwemusemmoneymtomtransfermpurchasingmpowermovermtime.
c. meansmpricesmaremexpressed minmtermsmof mmoney.
d. meansmthat mmoneymfinalizesmpayments
.mAns:mC
Difficulty:m02mMedium
LearningmObjective:m02-
01mAACSB:mReflectivemThin
kingmBlooms:mUnderstand
Topic:mMoneymand mHow mWemUsemIt
5. Without mthemusemof mmoney,mworkersminmanmeconomymwould:
a. becomemmoremspecialized
b. havemtomspend mamlot mlessmtimemtrading
c. probablymspecializemless
d. bemfarmmoremproductiv
emAns:mC
Difficulty:m02mMedium
LearningmObjective:m02-
01mAACSB:mReflectivemThin
kingmBlooms:mUnderstand
Topic:mMoneymand mHow mWemUsemIt
6. Asmanmeconomymproducesmmoremdifferent mtypesmof mgoods:
a. it mismmoremdifficult mtomquotempricesmif mthemeconomymdoesmnot musemmoney.
b. themnumbermof mrelativempricesmdecreases.
c. moneymbecomesmlessmusefulmasmamunit mof maccount.
d. moneymbecomesmlessmusefulmasmamstandard mof mvalu
e.mAns:mA
Difficulty:m03mHard
LearningmObjective:m02-
01mAACSB:mAnalyticalmThinkingm
Blooms:mEvaluate
Topic:mMoneymand mHow mWemUsemIt
7. Themstoremof mvaluemcharacteristicmof mmoneymrefersmtomthemfact mthat:
a. peoplemsavemmost mof mtheirmmoney.
b. moneymallowsmpeoplemtomshift mpurchasingmpowermintomthemfuture.
c. moneymismnot mvaluablemunlessmit mismstored.
d. moneymismthemonlymwaympeoplemhavemtomstoremvalu
e.mAns:mB
Difficulty:m01mEasy
2
© m2017 mby mMcGraw-
Hill mEducation.m This mis mproprietary mmaterialmsolely mformauthorizedminstructormuse.mNotmauthorizedmformsalemormdistributionminmany m man
ner.m This mdocumentmmay mnotmbemcopied,mscanned,mduplicated,mforwarded,mdistributed,mormpostedmonma mwebsite,minmwholemormpart.
mynursytest.store
,DOWNLOAD THE Test Bank for Money Banking and Financial Markets 5th Editio
m m m m m m m m m m m
n Cecchetti m
LearningmObjective:m02-
01mAACSB:mReflectivemThinkingm
Blooms:mRemember
Topic:mMoneymand mHow mWemUsemIt
8. Whichmbest mdescribesmmoneymasmammeansmof mpayment?
a. Moneymprovidesmanmimmediatemdoublemcoincidencemof mwants.
b. Moneymmakesmsuremamdoublemcoincidencemof mwantsmnevermoccurs.
c. Moneymrequiresmat mleast mtwomtransactionsmtomobtainmthemdoublemcoincidencemof mwants.
d. Tomobtainmamdoublemcoincidencemof mwantsmwithout mmoneymismimpossibl
e.mAns:mA
Difficulty:m01mEasy
LearningmObjective:m02-
01mAACSB:mReflectivemThinkingm
Blooms:mUnderstand
Topic:mMoneymand mHow mWemUsemIt
9. Comparemtwomeconomies:mambartermeconomymversusmanmeconomymthat musesmmoney.mInmorder
mtomexchangemgoodsmand mservices:
a. amdoublemcoincidencemof mwantsmismnecessaryminmthembartermeconomy.
b. amdoublemcoincidencemof mwantsmismmoremlikelymtomoccurminmthembartermeconomy.
c. transactionsmaremlikelymtombemsmootherminmthembartermeconomymbecausemgoodsmand mservicesm
aremexchanged mdirectly.
d. themmoneymeconomymrequiresmthat msellersmhavemmore minformation mabout mbuyers'mwant
s.mAns:mA
Difficulty:m02mMedium
LearningmObjective:m02-
01mAACSB:mReflectivemThin
kingmBlooms:mUnderstand
Topic:mMoneymand mHow mWemUsemIt
10. Inmambartermsystemmpeople:
a. havemtomspecializeminmordermtomhavemgoodsmtomtrade.
b. cannot mspecializembecausemtheymnevermknowmwhat mgoodsmwillmbemdesired.
c. aremlessmlikelymtomspecializemasmextensivelymas mtheymwould minmammonetarymeconomy.
d. must mbemself-
sufficient.mAns:mC
Difficulty:m02mMedium
LearningmObjective:m02-
01mAACSB:mReflectivemThin
kingmBlooms:mUnderstand
Topic:mMoneymand mHow mWemUsemIt
3
© m2017 mby mMcGraw-
Hill mEducation.m This mis mproprietary mmaterialmsolely mformauthorizedminstructormuse.mNotmauthorizedmformsalemormdistributionminmany m man
ner.m This mdocumentmmay mnotmbemcopied,mscanned,mduplicated,mforwarded,mdistributed,mormpostedmonma mwebsite,minmwholemormpart.
mynursytest.store
, DOWNLOAD THE Test Bank for Money Banking and Financial Markets 5th Editio
m m m m m m m m m m m
n Cecchetti m
11. How mmanympricesmwould mamtradermof mamparticularmgood mneed mtomknow minmambartermeconomymw
ithm5mgoods?
a. 5
b. 10
c. 20
d. 50
Ans:mB
Difficulty:m03mHard
LearningmObjective:m02-
01mAACSB:mKnowledgemApplicati
onmBlooms:mApply
Topic:mMoneymand mHow mWemUsemIt
12. How mmanympricesmwould mamtradermof mamparticularmgood mneed mtomknow minmambartermeconomymw
ithm20mgoods?
a. 190
b. 100
c. 20
d. 40
Ans:mA
Difficulty:m03mHard
LearningmObjective:m02-
01mAACSB:mKnowledgemApplicati
onmBlooms:mApply
Topic:mMoneymand mHow mWemUsemIt
13. Inmambartermeconomymwithm"n''mnumbermof mgoodsmtheremwillmalwaysmbe:
a. exactlym"n''mrelativemprices.
b. fewermthanm"n''mrelativemprices.
c. moremthanm"n''mrelativemprices.
d. "n''/2mrelativemprices
.
Ans:mC
Difficulty:m03mHard
LearningmObjective:m02-
01mAACSB:mKnowledgemApplicati
onmBlooms:mApply
Topic:mMoneymand mHow mWemUsemIt
4
© m2017 mby mMcGraw-
Hill mEducation.m This mis mproprietary mmaterialmsolely mformauthorizedminstructormuse.mNotmauthorizedmformsalemormdistributionminmany m man
ner.m This mdocumentmmay mnotmbemcopied,mscanned,mduplicated,mforwarded,mdistributed,mormpostedmonma mwebsite,minmwholemormpart.
mynursytest.store
m m m m m m m m m m m
n Cecchetti m
Chapterm02
Moneymand mthemPaymentsmSystem
Multiple-Choicem Questions
1. Whichmof mthemfollowingmwould mnot mbemconsidered mamcharacteristicmof mmoney?
a. It mismamstoremof mvalue.
b. It mismammeansmof mpayment.
c. It mmust mhavemintrinsicmvalue.
d. It mismamunit mof maccount
.mAns:mC
Difficulty:m01mEasy
LearningmObjective:m02-
01mAACSB:mReflectivemThinkingm
Blooms:mRemember
Topic:mMoneymand mHow mWemUsemIt
2. A msocietymwithout manymmoney:
a. could mnevermexchangemgoodsmand/ormservices.
b. would mfind mpeoplemdoingmeverythingmformthemselves.
c. would mhavemtomrelymonmbarter.
d. would mbemmoremefficient msincempeoplemwould mbemmoremself-
sufficient.mAns:mC
Difficulty:m02mMedium
LearningmObjective:m02-
01mAACSB:mReflectivemThin
kingmBlooms:mUnderstand
Topic:mMoneymand mHow mWemUsemIt
3. Themusemof mmoneymmakesmusmmoremefficient mbecause:
a. wemspend mmoremtimemtradingmand mmoremtimemproducing.
b. peoplemcanmspecializeminmwhat mtheymdomwell.
c. withmmoneymwemborrow mless.
d. moneymincreasesminmvaluemover mtime
.mAns:mB
Difficulty:m02mMedium
LearningmObjective:m02-
01mAACSB:mReflectivemThin
kingmBlooms:mUnderstand
Topic:mMoneymand mHow mWemUsemIt
1
© m2017 mby mMcGraw-
Hill mEducation.m This mis mproprietary mmaterialmsolely mformauthorizedminstructormuse.mNotmauthorizedmformsalemormdistributionminmany m man
ner.m This mdocumentmmay mnotmbemcopied,mscanned,mduplicated,mforwarded,mdistributed,mormpostedmonma mwebsite,minmwholemormpart.
mynursytest.store
,DOWNLOAD THE Test Bank for Money Banking and Financial Markets 5th Editio
m m m m m m m m m m m
n Cecchetti m
4. Themunit mof maccount mcharacteristicmof mmoney:
a. makesmit mdifficult mtomcomparemthemrelativempricesmof mgoodsmand mservices.
b. refersmtomhow mwemusemmoneymtomtransfermpurchasingmpowermovermtime.
c. meansmpricesmaremexpressed minmtermsmof mmoney.
d. meansmthat mmoneymfinalizesmpayments
.mAns:mC
Difficulty:m02mMedium
LearningmObjective:m02-
01mAACSB:mReflectivemThin
kingmBlooms:mUnderstand
Topic:mMoneymand mHow mWemUsemIt
5. Without mthemusemof mmoney,mworkersminmanmeconomymwould:
a. becomemmoremspecialized
b. havemtomspend mamlot mlessmtimemtrading
c. probablymspecializemless
d. bemfarmmoremproductiv
emAns:mC
Difficulty:m02mMedium
LearningmObjective:m02-
01mAACSB:mReflectivemThin
kingmBlooms:mUnderstand
Topic:mMoneymand mHow mWemUsemIt
6. Asmanmeconomymproducesmmoremdifferent mtypesmof mgoods:
a. it mismmoremdifficult mtomquotempricesmif mthemeconomymdoesmnot musemmoney.
b. themnumbermof mrelativempricesmdecreases.
c. moneymbecomesmlessmusefulmasmamunit mof maccount.
d. moneymbecomesmlessmusefulmasmamstandard mof mvalu
e.mAns:mA
Difficulty:m03mHard
LearningmObjective:m02-
01mAACSB:mAnalyticalmThinkingm
Blooms:mEvaluate
Topic:mMoneymand mHow mWemUsemIt
7. Themstoremof mvaluemcharacteristicmof mmoneymrefersmtomthemfact mthat:
a. peoplemsavemmost mof mtheirmmoney.
b. moneymallowsmpeoplemtomshift mpurchasingmpowermintomthemfuture.
c. moneymismnot mvaluablemunlessmit mismstored.
d. moneymismthemonlymwaympeoplemhavemtomstoremvalu
e.mAns:mB
Difficulty:m01mEasy
2
© m2017 mby mMcGraw-
Hill mEducation.m This mis mproprietary mmaterialmsolely mformauthorizedminstructormuse.mNotmauthorizedmformsalemormdistributionminmany m man
ner.m This mdocumentmmay mnotmbemcopied,mscanned,mduplicated,mforwarded,mdistributed,mormpostedmonma mwebsite,minmwholemormpart.
mynursytest.store
,DOWNLOAD THE Test Bank for Money Banking and Financial Markets 5th Editio
m m m m m m m m m m m
n Cecchetti m
LearningmObjective:m02-
01mAACSB:mReflectivemThinkingm
Blooms:mRemember
Topic:mMoneymand mHow mWemUsemIt
8. Whichmbest mdescribesmmoneymasmammeansmof mpayment?
a. Moneymprovidesmanmimmediatemdoublemcoincidencemof mwants.
b. Moneymmakesmsuremamdoublemcoincidencemof mwantsmnevermoccurs.
c. Moneymrequiresmat mleast mtwomtransactionsmtomobtainmthemdoublemcoincidencemof mwants.
d. Tomobtainmamdoublemcoincidencemof mwantsmwithout mmoneymismimpossibl
e.mAns:mA
Difficulty:m01mEasy
LearningmObjective:m02-
01mAACSB:mReflectivemThinkingm
Blooms:mUnderstand
Topic:mMoneymand mHow mWemUsemIt
9. Comparemtwomeconomies:mambartermeconomymversusmanmeconomymthat musesmmoney.mInmorder
mtomexchangemgoodsmand mservices:
a. amdoublemcoincidencemof mwantsmismnecessaryminmthembartermeconomy.
b. amdoublemcoincidencemof mwantsmismmoremlikelymtomoccurminmthembartermeconomy.
c. transactionsmaremlikelymtombemsmootherminmthembartermeconomymbecausemgoodsmand mservicesm
aremexchanged mdirectly.
d. themmoneymeconomymrequiresmthat msellersmhavemmore minformation mabout mbuyers'mwant
s.mAns:mA
Difficulty:m02mMedium
LearningmObjective:m02-
01mAACSB:mReflectivemThin
kingmBlooms:mUnderstand
Topic:mMoneymand mHow mWemUsemIt
10. Inmambartermsystemmpeople:
a. havemtomspecializeminmordermtomhavemgoodsmtomtrade.
b. cannot mspecializembecausemtheymnevermknowmwhat mgoodsmwillmbemdesired.
c. aremlessmlikelymtomspecializemasmextensivelymas mtheymwould minmammonetarymeconomy.
d. must mbemself-
sufficient.mAns:mC
Difficulty:m02mMedium
LearningmObjective:m02-
01mAACSB:mReflectivemThin
kingmBlooms:mUnderstand
Topic:mMoneymand mHow mWemUsemIt
3
© m2017 mby mMcGraw-
Hill mEducation.m This mis mproprietary mmaterialmsolely mformauthorizedminstructormuse.mNotmauthorizedmformsalemormdistributionminmany m man
ner.m This mdocumentmmay mnotmbemcopied,mscanned,mduplicated,mforwarded,mdistributed,mormpostedmonma mwebsite,minmwholemormpart.
mynursytest.store
, DOWNLOAD THE Test Bank for Money Banking and Financial Markets 5th Editio
m m m m m m m m m m m
n Cecchetti m
11. How mmanympricesmwould mamtradermof mamparticularmgood mneed mtomknow minmambartermeconomymw
ithm5mgoods?
a. 5
b. 10
c. 20
d. 50
Ans:mB
Difficulty:m03mHard
LearningmObjective:m02-
01mAACSB:mKnowledgemApplicati
onmBlooms:mApply
Topic:mMoneymand mHow mWemUsemIt
12. How mmanympricesmwould mamtradermof mamparticularmgood mneed mtomknow minmambartermeconomymw
ithm20mgoods?
a. 190
b. 100
c. 20
d. 40
Ans:mA
Difficulty:m03mHard
LearningmObjective:m02-
01mAACSB:mKnowledgemApplicati
onmBlooms:mApply
Topic:mMoneymand mHow mWemUsemIt
13. Inmambartermeconomymwithm"n''mnumbermof mgoodsmtheremwillmalwaysmbe:
a. exactlym"n''mrelativemprices.
b. fewermthanm"n''mrelativemprices.
c. moremthanm"n''mrelativemprices.
d. "n''/2mrelativemprices
.
Ans:mC
Difficulty:m03mHard
LearningmObjective:m02-
01mAACSB:mKnowledgemApplicati
onmBlooms:mApply
Topic:mMoneymand mHow mWemUsemIt
4
© m2017 mby mMcGraw-
Hill mEducation.m This mis mproprietary mmaterialmsolely mformauthorizedminstructormuse.mNotmauthorizedmformsalemormdistributionminmany m man
ner.m This mdocumentmmay mnotmbemcopied,mscanned,mduplicated,mforwarded,mdistributed,mormpostedmonma mwebsite,minmwholemormpart.
mynursytest.store
