搜索
1Test11.WhichitembelowisnotoneofthefivepartsoftheFinancialSystem?A)Money.B)Centralbanks.C)FinancialMarketsD)FinancialInstitutions.E)Creditcards.2.ThefivecoreprinciplesofMoneyandBankingincludeeachofthefollowingexcept?A)Allpeopleactrationally.B)Timehasvalue.C)Informationisthebasisfordecisions.D)Riskrequirescompensation.E)Marketssetpricesandallocateresources.3.Thestatementriskrequirescompensationimplies:A)Peopleonlyacceptriskwhentheyabsolutelyhaveto.D)Peoplewillpaytoavoidrisk.B)Peoplewillonlyacceptriskwhentheyarerewardedfordoingso.C)Peopledonottakerisk.E)bandd4.Banksusuallyofferlowerratesofinteresttopeoplewillingtokeeptheirfundsinthebankforashorttimebecause:A)Thebanksreallydonotwantthesepeopleascustomers.B)Banksreallydonotwantalotofpeoplecomingintothebank.C)Bankersrealizetimehasvalueandpeopleneedtobecompensatediftheyaretokeeptheirmoneyinthebanklonger.D)Alloftheabove5.Whichofthefollowingstatementsbestdescribesfinancialmarkets?A)Financialmarketsraisethecostandincreasethespeedofbuyingandsellingfinancialinstrumentssincepeopleareearningfeesforthesetransactions.B)Financialmarketsincreasethespeedofbuyingandselling,andtheyalsodecreasethecost.C)Financialmarketsareagoodexampleofunregulatedmarkets.D)bandc6.TheNewYorkStockExchangeisanexampleof:A)Afinancialinstrument.B)Acentralbank.C)AfinancialmarketD)Alloftheabove7.Whenanindividualobtainsastudentloanandmakesalloftheregularmonthlypayments,thesumofthepaymentsmadewillexceedtheinitialamountoftheloan.Thisisdueprimarilytothecoreprinciple:A)Mostpeopledonotpaybackstudentloans.B)TimehasvalueE)Stabilityimproveswelfare.C)Marketsaresometimesinefficientatallocatingresources.D)Informationisthebasisfordecisions.8.Monetarypolicyisbestdescribedas:A)Attemptstokeepinflationconstant.B)Determiningthedenominationsandsupplyofacountry'scurrency.C)OneofthemostimportantfunctionsofCongress.D)Attemptstokeepinflationlowandstableandgrowthhighandstable.9.Thecoreprinciplesofmoneyandbankingwouldimplythatifmorestudentsdidn'tpaybacktheirstudentloans:A)Studentloansmaybecomemoredifficulttoobtain.C)Fewerpeoplemayattendcollege.B)Theinterestrateonstudentloanswouldincrease.D)Alloftheabove.10.Asocietywithoutanymoney:A)Wouldlikelyfindpeoplespecializingmorethantheydonow.B)Wouldfindpeopledoingeverythingforthemselves.C)Wouldhavetorelystrictlyonbarter.D)Wouldbemoreproductivesincepeoplewouldbemoreself-sufficient.11.Whilemoneyisanassetnotallassetsaremoneybecause:A)Moneyworksasameansofpayment.B)Onlymoneystoresvalue.C)Onlymoneyisagoodassettoholdduringtimesofinflation.D)Forsomethingtobemoneyitmustbelegaltender.12.IncomparingmoneytoashareofMicrosoftstockheldbyanindividualwecansay:A)Thestockisanassetbutmoneyisnot.B)Botharestoresofvalue.C)MoneyisanassetbutthestockisaliabilityoftheindividualD)Thestockisastoreofvaluebutthemoneyisn't.213.Whichofthefollowingcouldbeusedascommoditymoney:A)$20dollarbills.B)Goldcoins.C)Checkingdeposits.D)Alloftheabove.14.Checksare:A)Ameansofpayment.B)Money.C)Notapromiseofanykind.D)NotacceptablebytheU.S.Governmentforpaymentoftaxes.15.Moneyaggregatescanbestbedefinedas:A)TheamountofmoneytheFederalReserveistargetingfortheeconomy.B)Theamountofmoneymeasuredataparticularpointintime.C)Theaverageamountofmoneyavailabletotheeconomyoverayear.D)TheamountofU.S.currencytheBureauofPrintingandEngravinghasproduced.16.ThemoneyaggregateM1doesnotinclude:A)Currencyinthehandsofthepublic.B)Traveler'schecksthathavebeenissued.C)Currencyinthevaultsofcommercialbanks.D)Demanddepositsatcommercialbanks.17.ThemoneyaggregateM2includeseachofthefollowingEXCEPT:A)Smalldenominationtimedeposits.B)RetailMoneyMarketMutualfundsharesC)U.S.Treasurybills.D)M118.Economistsstudythelinkbetweenmoneyandinflationbecause:A)Researchshowsthatthereissomeinversecorrelationbetweenthesupplyofmoneyandinflation.B)Economistsbelievethatinflationinthe3-5%rangeishealthyforaneconomy.C)Aspricesincreasemoneybecomesmorevaluable.D)Researchshowsthatthereissomedirectcorrelationbetweenthesupplyofmoneyandinflation.19.Tomusesacreditcardtopurchaseanewpairofjeans,Tomis:A)Usingmoneytobuyhisjeanssincecreditcardsaremoney.B)UsingaformofmoneyincludedinM3.C)Isusinganelectronicpaymentformofmoneythatisinthecategoryofcheckingdeposits.D)Creatingaliabilitythathewillultimatelyhavetopaywithmoney.20.AFinancialIntermediary:A)Isanagencythatguaranteesaloan.B)Isinvolvedindirectfinance.C)WouldbeusedinindirectfinanceD)Noneoftheabove.21.JohnobtainsahomeimprovementloanfromNewTownBank:A)TheloanisJohn'sassetandthebank'sliability.B)TheloanisJohn'sasset,buttheliabilitybelongstothebank'sdepositors.C)TheloanisJohn'sliabilityandanassetforNewTownBank.D)TheloanisJohn'sliabilityandaliabilityofthebankuntilTompaysitoff.22.WhichofthefollowingisNOTafinancialinstrument:A)AshareofGeneralMotorsstock.B)Atuitionbill.C)AU.S.TreasuryBond.D)Ahomeinsurancepolicy.E)Alifeinsurancepolicy.23.ThesharesofMcDonaldCorporationstockareexamplesof:A)Astandardizedfinancialinstrument.B)Astandardizedfinancialliabilityinstrument.C)Anon-standardizedfinancialinstrumentsincetheirpricescandifferovertime.D)Ameansofpayment.24.AsymmetricInf