Principles of Economics Robert Frank 7th Edition- Test Bank.pdf

CreatednBy:nAnSolution


TestnBanknfornEconomicsnofnMoney,nBanking,nandnFinancialn
Marketsn6thneditionnbynMishkin
Chaptern3nWhatnIsnMoney?


3.1 MeaningnofnMoney


1) Anperson'snhousenisnpartnofnhern .
A) money
B) income
C) liabilities
D) wealthnAnswer:nD
Diff:n1 Type:nMCnSkill:nRecall
Objective:n3.1nDescribenwhatnmoneynis


2) Moneynisn .
A)
anythingnthatnisngenerallynacceptedninnpaymentnforngoodsnandnservicesnorninnthenre
paymentnofndebt
B) anflownofnearningsnpernunitnofntime
C) thentotalncollectionnofnpiecesnofnpropertynthatnarenanstorenofnvalue
D) alwaysnbasednonnanpreciousnmetalnlikengoldnornsilvernAnswer:nA
Diff:n1 Type:nMCnSkill:nRecall
Objective:n3.1nDescribenwhatnmoneynis


3) Tonanneconomist,n
isnanythingnthatnisngenerallynacceptedninnpaymentnforngoodsnandnservicesnorninnthe
nrepaymentnofndebt.
A) wealth
B) income
C) money


A+ Pagen1

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D) creditnAnswer:nC
Diff:n1 Type:nMCnSkill:nRecall
Objective:n3.1nDescribenwhatnmoneynis
4) Currencynisndefinednasn .
A) anythingnacceptednfornpaymentnofngoodsnandnservices
B) papernmoneynandncoins
C) anunitnofnaccount
D) foreignnexchangenAnswer:nB
n
Diff:n1 Type:nMCnSkill:nRecall
Objective:n3.1nDescribenwhatnmoneynis
5) Moneynisn .
A) thensamenasncurrency
B)
anythingnthatnisngenerallynacceptedninnpaymentnofngoodsnornservicesnorninnthenrepa
ymentnofndebts
C) notnusednasnanunitnofnaccount
D) definednasnpapernmoneynandncoinsnAnswer:nB
Diff:n1 Type:nMCnSkill:nRecall
Objective:n3.1nDescribenwhatnmoneynis


6) Currencynincludesn .
A) papernmoneynandncoins
B) papernmoney,ncoins,nandncheques
C) papernmoneynandncheques
D) papernmoney,ncoins,ncheques,nandnsavingsndepositsnAnswer:nA
Diff:n1 Type:nMCnSkill:nRecall
Objective:n3.1nDescribenwhatnmoneynis




A+ Pagen2

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7)
Therenisnnonsinglenprecisenmeasurenofnmoneynornthenmoneynsupplynforneconomists
nbecause
.
A)
thengovernmentnconsidersnmoneynsupplynstatisticsntonbenconfidentialnandnrefusesnto
npublishnthem
B)
decidingnwhatnisngenerallynacceptedninnpaymentnforngoodsnandnservicesnorninnthenr
epaymentnofndebtnisndifficultntondetermine
C) economistsncannotnagreenifncurrencynshouldnbenconsiderednmoney
D) definitionsnchangenallnthentimenAnswer:nB
Diff:n2 Type:nMCnSkill:nRecall
Objective:n3.1nDescribenwhatnmoneynis


8) Evenneconomistsnhavennonsingle,nprecisendefinitionnofnmoneynbecausen .
A) moneynsupplynstatisticsnarenanstatensecret
B)
thenBanknofnCanadandoesnnotnemploynornreportndifferentnmeasuresnofnthenmoneyns
upply
C) then"moneyness"nornliquiditynofnannassetnisnanmatternofndegree
D)
economistsnfindndisagreementninterestingnandnrefusentonagreenfornideologicalnreason
snAnswer:nC
Diff:n2 Type:nMCnSkill:nRecall
Objective:n3.1nDescribenwhatnmoneynis
n


n
9) Thentotalncollectionnofnpiecesnofnpropertynthatnserventonstorenvaluenisnanperson'sn
.

A+ Pagen3

, CreatednBy:nAnSolution


A) wealth
B) income
C) money
D) creditnAnswer:nA
Diff:n1 Type:nMCnSkill:nRecall
Objective:n3.1nDescribenwhatnmoneynis
10) isnusedntonmakenpurchasesnwhilen
isnthentotalncollectionnofnpiecesnofnpropertynthatnserventonstorenvalue.
A) Money;nincome
B) Wealth;nincome
C) Income;nmoney
D) Money;nwealthnAnswer:nD
Diff:n1 Type:nMCnSkill:nRecall
Objective:n3.1nDescribenwhatnmoneynis


11) isnanflownofnearningsnpernunitnofntime.
A) Income
B) Money
C) Wealth
D) CurrencynAnswer:nA
Diff:n1 Type:nMCnSkill:nRecall
Objective:n3.1nDescribenwhatnmoneynis


12) Annindividual'snannualnsalarynisnhern .
A) money
B) income
C) wealth
D) liabilitiesnAnswer:nB
Diff:n1 Type:nMCnSkill:nRecall
Objective:n3.1nDescribenwhatnmoneynis
n

A+ Pagen4