Economics - Money, Interest Rates And Output
Quiz-summary
0 of 76 questions completed
Questions:
- 1
- 2
- 3
- 4
- 5
- 6
- 7
- 8
- 9
- 10
- 11
- 12
- 13
- 14
- 15
- 16
- 17
- 18
- 19
- 20
- 21
- 22
- 23
- 24
- 25
- 26
- 27
- 28
- 29
- 30
- 31
- 32
- 33
- 34
- 35
- 36
- 37
- 38
- 39
- 40
- 41
- 42
- 43
- 44
- 45
- 46
- 47
- 48
- 49
- 50
- 51
- 52
- 53
- 54
- 55
- 56
- 57
- 58
- 59
- 60
- 61
- 62
- 63
- 64
- 65
- 66
- 67
- 68
- 69
- 70
- 71
- 72
- 73
- 74
- 75
- 76
Information
This is the MCQs of Economics
You have already completed the quiz before. Hence you can not start it again.
Quiz is loading...
You must sign in or sign up to start the quiz.
You have to finish following quiz, to start this quiz:
Results
0 of 76 questions answered correctly
Your time:
Time has elapsed
You have reached 0 of 0 points, (0)
Categories
- Not categorized 0%
- 1
- 2
- 3
- 4
- 5
- 6
- 7
- 8
- 9
- 10
- 11
- 12
- 13
- 14
- 15
- 16
- 17
- 18
- 19
- 20
- 21
- 22
- 23
- 24
- 25
- 26
- 27
- 28
- 29
- 30
- 31
- 32
- 33
- 34
- 35
- 36
- 37
- 38
- 39
- 40
- 41
- 42
- 43
- 44
- 45
- 46
- 47
- 48
- 49
- 50
- 51
- 52
- 53
- 54
- 55
- 56
- 57
- 58
- 59
- 60
- 61
- 62
- 63
- 64
- 65
- 66
- 67
- 68
- 69
- 70
- 71
- 72
- 73
- 74
- 75
- 76
- Answered
- Review
-
Question 1 of 76
1. Question
Money is:
Correct
Incorrect
-
Question 2 of 76
2. Question
Which of the following is not a function of money?
Correct
Incorrect
-
Question 3 of 76
3. Question
An example of fiat money is:
Correct
Incorrect
-
Question 4 of 76
4. Question
Commodity money:
Correct
Incorrect
-
Question 5 of 76
5. Question
Which of the following statements about money is not true?
Correct
Incorrect
-
Question 6 of 76
6. Question
Bance Solida has, in the past, always operated with a reserve ratio of 25 percent. It has now been taken over by Gung-Ho Bank Which operates with a reserve ration of 12½ percent, Assuming that Banca Solida adopts the business practices of its new owner, What will be the effect on money supply in the country in which Banca Solida operates?
Correct
Incorrect
-
Question 7 of 76
7. Question
If the banks in an economy operate with a reserve ratio of 20 percent then the money multiplier is:
Correct
Incorrect
-
Question 8 of 76
8. Question
Suppose Imtiaz moves his Rs1,000 demand deposit from Bank A to Bank B. If both banks operate with a reserve ratio of 10 percent What is the potential change in money supply as a result of Gerard’s action?
Correct
Incorrect
-
Question 9 of 76
9. Question
Reserve requirements that may be imposed on an economy’s banks by its central bank specify that banks by its central bank specify that banks reserve must be a minimum percentage of their
Correct
Incorrect
-
Question 10 of 76
10. Question
Which of the following policy actions by a central bank is likely to increase the money supply?
Correct
Incorrect
-
Question 11 of 76
11. Question
The refinancing rate is:
Correct
Incorrect
-
Question 12 of 76
12. Question
Suppose the State Bank purchases a Rs 1,000 government bond from you. If you deposit the entire Rs 1,000 in you bank what is the total potential change in the money supply as a result of the State Bank’s action if the your bank’s reserve ratio is 20 percent?
Correct
Incorrect
-
Question 13 of 76
13. Question
Suppose all banks maintain a 100 percent reserve ratio. If an individual deposits Rs 1,000 of currency in a bank
Correct
Incorrect
-
Question 14 of 76
14. Question
The three main tools of monetary policy are:
Correct
Incorrect
-
Question 15 of 76
15. Question
Suppose the central bank purchases a government bond from a person who deposits the entire amount received from the sale in her bank the money supply will:
Correct
Incorrect
-
Question 16 of 76
16. Question
If there is a general shortage of liquidity in the money market then:
Correct
Incorrect
-
Question 17 of 76
17. Question
Which one of the following is not true?
Correct
Incorrect
-
Question 18 of 76
18. Question
Government Securities with terms of more than one year are called:
Correct
Incorrect
-
Question 19 of 76
19. Question
An item designated as money that is intrinsically worthless is:
Correct
Incorrect
-
Question 20 of 76
20. Question
Money that a government has required has required to be accepted in settlement of debts is:
Correct
Incorrect
-
Question 21 of 76
21. Question
Which of the following is included in broad money, but not included in narrow money?
Correct
Incorrect
-
Question 22 of 76
22. Question
A checking deposit in a bank in considered ____ of that bank
Correct
Incorrect
-
Question 23 of 76
23. Question
Which of the following activities is one of the responsibilities of the Bank of England to the banking system?
Correct
Incorrect
-
Question 24 of 76
24. Question
The difference between a bank’s actual reserves and its required reserves is its:
Correct
Incorrect
-
Question 25 of 76
25. Question
As the required reserve ratio is decreased the money multiplier
Correct
Incorrect
-
Question 26 of 76
26. Question
A bank has excess reserves to lend but is unable to find anyone to borrow the money This will ____ the size of the money multiplier
Correct
Incorrect
-
Question 27 of 76
27. Question
Assume that commercial banks are holding excess reserves because business firms and consumers are not willing to borrow money A decrease in the discount rate is likely to:
Correct
Incorrect
-
Question 28 of 76
28. Question
If the quantity of money demanded exceeds the quantity of money supplied then the interest rate will:
Correct
Incorrect
-
Question 29 of 76
29. Question
When economies speak of the demand for money which of the following question are they asking ?
Correct
Incorrect
-
Question 30 of 76
30. Question
Which of the following events will lead to an increase in the demand for money?
Correct
Incorrect
-
Question 31 of 76
31. Question
Which of the following events will lead to a decrease in the equilibrium interest rate?
Correct
Incorrect
-
Question 32 of 76
32. Question
The main reason that people hold money to buy things is referred to as the:
Correct
Incorrect
-
Question 33 of 76
33. Question
The motive for holding money that encourages investors to hold bonds when interest rates are low, with the hope of selling them when interest rates are high, is the:
Correct
Incorrect
-
Question 34 of 76
34. Question
The opportunity cost of holding money is determined by:
Correct
Incorrect
-
Question 35 of 76
35. Question
The demand for money represents the idea that there is:
Correct
Incorrect
-
Question 36 of 76
36. Question
In terms of the demand for money the interest rate represents:
Correct
Incorrect
-
Question 37 of 76
37. Question
The chain of events that results from an expansionary monetary policy is:
Correct
Incorrect
-
Question 38 of 76
38. Question
The equilibrium level of aggregate output is determined in:
Correct
Incorrect
-
Question 39 of 76
39. Question
The interest rate is determined in:
Correct
Incorrect
-
Question 40 of 76
40. Question
An increase in the money supply aimed at increasing aggregate output is referred to as:
Correct
Incorrect
-
Question 41 of 76
41. Question
An example of an expansionary monetary policy is:
Correct
Incorrect
-
Question 42 of 76
42. Question
The interest rate:
Correct
Incorrect
-
Question 43 of 76
43. Question
If the investment demand curve is vertical:
Correct
Incorrect
-
Question 44 of 76
44. Question
For the Central bank to keep the interest rat unchanged as the government increase spending, the Central Bank must continue to:
Correct
Incorrect
-
Question 45 of 76
45. Question
If The Central bank tries to keep the interest rate constant when the economy is operating on the steep part of the AS curve, ____ will occur
Correct
Incorrect
-
Question 46 of 76
46. Question
According to the simple keynesian view the aggregate supply curve is:
Correct
Incorrect
-
Question 47 of 76
47. Question
The idea the government spending causes a reduction in private investment is called:
Correct
Incorrect
-
Question 48 of 76
48. Question
If the central bank increases the money supply at the same time as the government increasing spending, it is suggested that investment will
Correct
Incorrect
-
Question 49 of 76
49. Question
The way in which government spending is supposed to reduce investment is by increasing:
Correct
Incorrect
-
Question 50 of 76
50. Question
If planned investment becomes more sensitive to interest rate changes the crowding out effect will
Correct
Incorrect
-
Question 51 of 76
51. Question
Each point on the IS curve represents the equilibrium point in the:
Correct
Incorrect
-
Question 52 of 76
52. Question
The curve that illustrates the negative relationship between the equilibrium values of aggregate output and the interest rate in the goods market is the:
Correct
Incorrect
-
Question 53 of 76
53. Question
The curve that illustrates the positive relationship between the equilibrium values of aggregate output and the interest rate in the money market is the:
Correct
Incorrect
-
Question 54 of 76
54. Question
When the money supply increase
Correct
Incorrect
-
Question 55 of 76
55. Question
Each point on the LM curve represents the equilibrium point in the:
Correct
Incorrect
-
Question 56 of 76
56. Question
Keynesians and monetarists differ over how steep the IS and LM curves actually are Monetarists claim that the IS curve must be _____ and the LM curve must be _____
Correct
Incorrect
-
Question 57 of 76
57. Question
Money has 3 main function they are ____ ____ and _____
Correct
Incorrect
-
Question 58 of 76
58. Question
The primary function of bank is to
Correct
Incorrect
-
Question 59 of 76
59. Question
Banks create money by:
Correct
Incorrect
-
Question 60 of 76
60. Question
The size of the money multiplier is determined by the marginal propensity to consume
Correct
Incorrect
-
Question 61 of 76
61. Question
The money supply is
Correct
Incorrect
-
Question 62 of 76
62. Question
If banks and the private sector decide to hold less cash the money multiplier will be:
Correct
Incorrect
-
Question 63 of 76
63. Question
Three variables affect the demand for money they are ____ ____ and _____
Correct
Incorrect
-
Question 64 of 76
64. Question
If the keep some money available in case I see a bargain this is an example of:
Correct
Incorrect
-
Question 65 of 76
65. Question
An increase in the price level will likely increase the demand for nominal money
Correct
Incorrect
-
Question 66 of 76
66. Question
When interest rate rise, other things equal, we can expect the quantity of real money holding to:
Correct
Incorrect
-
Question 67 of 76
67. Question
When real income increase other things equal we can expect the demand for real money holdings to:
Correct
Incorrect
-
Question 68 of 76
68. Question
M4 is a _____ measure of money and includes deposits at both ____ and _____
Correct
Incorrect
-
Question 69 of 76
69. Question
The monetary base is ____ and ____
Correct
Incorrect
-
Question 70 of 76
70. Question
If the central bank buys financial securities in the open market to increase the monetary base, this is and example of:
Correct
Incorrect
-
Question 71 of 76
71. Question
Equilibrium in the Money market will change if there is:
Correct
Incorrect
-
Question 72 of 76
72. Question
The money supply is controlled by using open market operations to determine the money multiplier and by using reserve requirements and the discount rate to determine the monetary base
Correct
Incorrect
-
Question 73 of 76
73. Question
Central banks prefer to fix the ____ and accept the resulting _____
Correct
Incorrect
-
Question 74 of 76
74. Question
One of the transmission mechanisms of monetary policy is through consumer demand when interest rates _____ household wealth _____ and consumption ______
Correct
Incorrect
-
Question 75 of 76
75. Question
A reduction in interest rates, causes an increases in the monetary base that results in an _____ in the availability of consumer credit and a _____ in the cost of consumer credit
Correct
Incorrect
-
Question 76 of 76
76. Question
A fall in investment demand can result from
Correct
Incorrect