Test bank Monetary Policy Exam With Questions and Correct Answer

QUIZ 1 1. When money prices are used to facilitate comparisons of value, money is said to function as a ________. Select one: a. medium of exchange. b. payments-system ruler. c. store of value. d. unit of accounT 2. Budget deficits are important because deficits Select one: a. always cause interest rates to fall.2xx? b. cause bank failures.??? c. always cause prices to fall. d. can result in higher rates of monetary growth. 3. Introduction of checks into the payments system reduced the costs of exchanging goods and services. Another advantage of checks is that Select one: a. they are more widely accepted than currency b. the funds from a deposited check are available for use immediately. c. they provide convenient receipts for purchases d. they can never be stolen GeekBano 4. Money is Select one: a. anything that is generally accepted in payment for goods and services or in the repayment of debt. b. the total collection of pieces of property that are a store of value c. always based on a precious metal like gold or silver. d. a flow of earnings per unit of time. 5. Of moneyʹs three functions, the one that distinguishes money from other assets is its function as a _______. Select one: a. store of value b. unit of account. c. medium of exchange.???? d. standard of deferred payment 6. A disadvantage of ________ is that it is very heavy and hard to transport from one place to another. Select one: a. paper money b. electronic money c. commodity money/ d. fiat money GeekBano 7. Paper currency that has been declared legal tender but is not convertible into coins or precious metals is called ________ money. Select one: a.// fiat b. commodity c. funny d. electronic 8. Kevin purchasing concert tickets with his debit card is an example of the ________ function of money Select one: a. specialization b. medium of exchange2/ c. store of value1 d. unit of account 9. Currency includes Select one: a. paper money and checks b. paper money, coins, and checks c. paper money, coins, checks, and savings deposits. d. paper money and coins// 10. When tax revenues are greater than government expenditures, the government has a budget ________. GeekBano Select one: a. deficit b. revision c. Surplus/ d. crisis 11. Whatever a society uses as money, the distinguishing characteristic is that it must Select one: a. contain gold. b. be completely inflation proof. c. be produced by the government. d. be generally acceptable as payment for goods and services or in the repayment of debt. 12. If peanuts serve as a medium of exchange, a unit of account, and a store of value, then peanuts are Select one: a. reserves. b. loanable funds c. Money// d. bank deposits 13. Patrick places his pocket change into his savings bank on his desk each evening. By his actions, Patrick indicates that he believes that money is a GeekBano Select one: a. unit of specialization. b. store of value.// c. unit of account d. medium of exchange. 14. ________ policy involves decisions about government spending and taxation. Select one: a. Systemic b./ Fiscal c. Financial d. Monetary