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Test Bank for Economics of Money, Banking, and Financial Markets 6 th edition by Mishkin A+
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TEST BANK for The Economics of Money, Banking, and Financial Markets 8th Canadian Edition by Frederic Mishkin
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Created By: A SolutionTest Bank for Economics of Money, Banking, and Financial
Markets 6th edition by Mishkin
Chapter 3 What Is Money?
3.1 Meaning of Money
1) A person's house is part of her .
A) money
B) income
C) liabilities
D) wealth Answer: D
Diff: 1 Type: MC Skill: Recall
Objective: 3.1 Describe what money is
2) Money is .
A) anything that is generally accepted in payment for goods and services or in the repayment
of debt
B) a flow of earnings per unit of time
C) the total collection of pieces of property that are a store of value
D) always based on a precious metal like gold or silver Answer: A
Diff: 1 Type: MC Skill: Recall
Objective: 3.1 Describe what money is
3) To an economist, is anything that is generally accepted in payment for goods and
services or in the repayment of debt.
A) wealth
B) income
C) money
D) credit Answer: C
Diff: 1 Type: MC Skill: Recall
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Objective: 3.1 Describe what money is
4) Currency is defined as .
A) anything accepted for payment of goods and services
B) paper money and coins
C) a unit of account
D) foreign exchange Answer: B
Diff: 1 Type: MC Skill: Recall
Objective: 3.1 Describe what money is
5) Money is .
A) the same as currency
B) anything that is generally accepted in payment of goods or services or in the repayment
of debts
C) not used as a unit of account
D) defined as paper money and coins Answer: B
Diff: 1 Type: MC Skill: Recall
Objective: 3.1 Describe what money is
6) Currency includes .
A) paper money and coins
B) paper money, coins, and cheques
C) paper money and cheques
D) paper money, coins, cheques, and savings deposits Answer: A
Diff: 1 Type: MC Skill: Recall
Objective: 3.1 Describe what money is
7) There is no single precise measure of money or the money supply for economists because
.
A) the government considers money supply statistics to be confidential and refuses to
publish them
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B) deciding what is generally accepted in payment for goods and services or in the
repayment of debt is difficult to determine
C) economists cannot agree if currency should be considered money
D) definitions change all the time Answer: B
Diff: 2 Type: MC Skill: Recall
Objective: 3.1 Describe what money is
8) Even economists have no single, precise definition of money because .
A) money supply statistics are a state secret
B) the Bank of Canada does not employ or report different measures of the money supply
C) the "moneyness" or liquidity of an asset is a matter of degree
D) economists find disagreement interesting and refuse to agree for ideological reasons
Answer: C
Diff: 2 Type: MC Skill: Recall
Objective: 3.1 Describe what money is
9) The total collection of pieces of property that serve to store value is a person's .
A) wealth
B) income
C) money
D) credit Answer: A
Diff: 1 Type: MC Skill: Recall
Objective: 3.1 Describe what money is
10) is used to make purchases while is the total collection of pieces of property
that serve to store value.
A) Money; income
B) Wealth; income
C) Income; money
D) Money; wealth Answer: D
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Diff: 1 Type: MC Skill: Recall
Objective: 3.1 Describe what money is
11) is a flow of earnings per unit of time.
A) Income
B) Money
C) Wealth
D) Currency Answer: A
Diff: 1 Type: MC Skill: Recall
Objective: 3.1 Describe what money is
12) An individual's annual salary is her .
A) money
B) income
C) wealth
D) liabilities Answer: B
Diff: 1 Type: MC Skill: Recall
Objective: 3.1 Describe what money is
13) When we say that money is a stock variable, we mean that .
A) the quantity of money is measured at a given point in time
B) we must attach a time period to the measure
C) it is sold in the equity market
D) money never loses purchasing power Answer: A
Diff: 2 Type: MC Skill: Recall
Objective: 3.1 Describe what money is
14) The difference between money and income is that .
A) money is a flow and income is a stock
B) money is a stock and income is a flow
C) there is no difference—money and income are both stocks
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