Chapter 2 - Results for Multiple Choice Quiz PDF

Preview

Summary

Lecture Notes...

Description

2/11/2021

Chapter 2 - Results for Multiple Choice Quiz

Results for Multiple Choice Quiz Close this window

You correctly answered 0 questions for a score of 0 percent. Unanswered questions were counted as incorrect in the calculation. 2-1. Barter is inconvenient because a. of the necessity of the double coincidence of wants. b. large amounts of money are required. c. gold is bulky and difficult to transport during day-to-day transactions. d. because resources are limited. The question was not answered. The correct answer is "a". (Coaching responses are only available for answered questions) 2-2. Compared to barter system, a monetary system a. increases transaction costs. b. decreases the number of transactions. c. requires that prices be negotiated for every transaction. d. reduces transactions costs and facilitates exchanges. The question was not answered. The correct answer is "d". (Coaching responses are only available for answered questions) 2-3. The functions of money are a. medium of exchange and unit of account. b. medium of exchange, unit of account, and store of value. c. medium of account and store of value. d. store of value and unit of account. The question was not answered. The correct answer is "b". (Coaching responses are only available for answered questions) 2-4. A medium of exchange is a. something that is generally acceptable in exchange for goods and services b. a legally recognized asset that is generally accepted in exchange for goods and services. c. something that circulates and provides a standardized means of evaluating the relative price of goods and services. d. the ability of money to command purchasing power in the future The question was not answered. The correct answer is "a". (Coaching responses are only available for answered questions) 2-5. A unit of account a. something that is generally acceptable in exchange for goods and services 1/6

2/11/2021

Chapter 2 - Results for Multiple Choice Quiz

b. a legally recognized asset that is generally accepted in exchange for goods and services. c. something that circulates and provides a standardized means of evaluating the relative price of goods and services. d. the ability of money to command purchasing power in the future The question was not answered. The correct answer is "c". (Coaching responses are only available for answered questions) 2-6. Store of value a. something that is generally acceptable in exchange for goods and services b. a legally recognized asset that is generally accepted in exchange for goods and services. c. something that circulates and provides a standardized means of evaluating the relative price of goods and services. d. the ability of money to command purchasing power in the future The question was not answered. The correct answer is "d". (Coaching responses are only available for answered questions) 2-7. Transaction costs a. include only the financial costs of completing a given economic transaction. b. include the financial and non-financial costs of completing a given economic transaction. c. include the purchase price of the transacted item inclusive of sales taxes. d. include the purchase price of the transacted item exclusive of sales taxes. The question was not answered. The correct answer is "b". (Coaching responses are only available for answered questions) 2-8. The primary function of money is a. the store of value function. b. the medium of exchange function. c. the unit of account function. d. the savings function. The question was not answered. The correct answer is "b". (Coaching responses are only available for answered questions) 2-9. History has produced two broad monetary standards a. gold standard and silver standard. b. gold standard and convertible-money standard. c. commodity-money standard and fiat-money standard. d. commodity-money standard and convertible-money standard. The question was not answered. The correct answer is "c". (Coaching responses are only available for answered questions) 2/6

2/11/2021

Chapter 2 - Results for Multiple Choice Quiz

2-10. Under a fiat-money standard the value of the circulating medium of exchange is guaranteed by a. some precious commodity such as gold or silver. b. by the taxing and borrowing powers of the government. c. the paper it is printed on. d. does not have any value. The question was not answered. The correct answer is "b". (Coaching responses are only available for answered questions) 2-11. The superiority of one monetary standard over another is dictated as a. government decree. b. the intrinsic value of the currency. c. public confidence. d. a nation's wealth. The question was not answered. The correct answer is "c". (Coaching responses are only available for answered questions) 2-12. A gold standard is a monetary system wherein the exchange rate is determined by a. the supply of available gold. b. the Minister of Finance. c. the Bank of Canada. d. the price of gold. The question was not answered. The correct answer is "d". (Coaching responses are only available for answered questions) 2-13. Gresham's law stipulates that a. good money drives away bad money. b. bad money drives away good money. c. bimatilism is a superior monetary standard than the silver standard. d. a Central bank decision to print paper money is limited to the economy's growth rate. The question was not answered. The correct answer is "b". (Coaching responses are only available for answered questions) 2-14. Bimetallism is a monetary system a. based on the value of two precious metals usually gold and silver. b. based on a commodity-backed currency in circulation with papermoney. c. based on paper currency and coin. d. whereby silver was used for larger denominations while silver was used for smaller denominations. The question was not answered. The correct answer is "a". (Coaching responses are only available for answered questions)

3/6

2/11/2021

Chapter 2 - Results for Multiple Choice Quiz

2-15. One popular media of exchange that existed during the Canada's early French colonial period was a. American coins. b. beaver pelts. c. playing cards. d. silver coins minted in France. The question was not answered. The correct answer is "c". (Coaching responses are only available for answered questions) 2-16. A central bank a. is a bank located in the centre of the capital city. b. is responsible for the conduct of overall economic policy. c. is responsible for the conduct of a country's monetary policy. d. is a nation's single most important deposit accepting institution. The question was not answered. The correct answer is "c". (Coaching responses are only available for answered questions) 2-17. The Bank of Canada a. controls and manages our country's debt. b. regulates and supervises our country's banks. c. controls and manages all financial resources in Canada. d. controls and manages our country's money supply. The question was not answered. The correct answer is "d". (Coaching responses are only available for answered questions) 2-18. The money supply a. is comprised only of Bank of Canada notes and coins in circulation. b. is comprised only of the deposits of the chartered banks at the Bank of Canada. c. is a broad definition of financial assets available for use in payments. d. includes all forms of liquid and less liquid assets such as currency in circulation, term deposits, chequing and savings account deposits, and Canada savings bonds. The question was not answered. The correct answer is "c". (Coaching responses are only available for answered questions) 2-19. M1 is defined as a. currency outside banks plus chartered banks' demand deposits. b. currency outside banks, chartered banks' demand deposits, and nonpersonal notice deposits and personal savings deposits at chartered banks. c. currency in circulation plus demand deposits made at financial institutions. d. must be highly liquid and thus includes only currency circulating outside the banking system. 4/6

2/11/2021

Chapter 2 - Results for Multiple Choice Quiz

The question was not answered. The correct answer is "a". (Coaching responses are only available for answered questions) 2-20. M2 is defined as a. currency outside banks plus chartered banks' demand deposits. b. currency outside banks, chartered banks' demand deposits, and non-personal notice deposits and personal savings deposits at chartered banks. c. currency in circulation plus demand deposits made at financial institutions. d. must be highly liquid and thus includes only currency circulating outside the banking system. The question was not answered. The correct answer is "b". (Coaching responses are only available for answered questions) 2-21. M1+ is defined as a. chequable notice deposits at chartered banks. b. chequable notice deposits at trust and mortgage loan companies, credit unions, and caisses populaires. c. currency in circulation plus current account deposits, demand deposits, personal chequing accounts (net of private sector float), chequable notice deposits at chartered banks, and chequable deposits at trust and mortgage loan companies, credit unions and caisses populaires. d. currency in circulation plus current account deposits, demand deposits, personal chequing accounts (net of private sector float), chequable and non-chequable notice deposits at chartered banks, and chequable and non-chequable deposits at trust and mortgage loan companies, credit unions and caisses populaires. The question was not answered. The correct answer is "c". (Coaching responses are only available for answered questions) 2-22. M1 ++ is defined as a. chequable notice deposits at chartered banks. b. chequable notice deposits at trust and mortgage loan companies, credit unions, and caisses populaires. c. currency in circulation plus current account deposits, demand deposits, personal chequing accounts (net of private sector float), chequable notice deposits at chartered banks, and chequable deposits at trust and mortgage loan companies, credit unions and caisses populaires. d. currency in circulation plus current account deposits, demand deposits, personal chequing accounts (net of private sector float), chequable and non-chequable notice deposits at chartered banks, and chequable and non-chequable deposits at trust and mortgage loan companies, credit unions and caisses populaires. The question was not answered. The correct answer is "d". (Coaching responses are only available for answered questions)

5/6

2/11/2021

Chapter 2 - Results for Multiple Choice Quiz

The email form is not available as no questions were answered.

6/6...