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ECON 104 - Study Guide With Complete Solutions Latest Update 2024
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ECON 104 - Study Guide With Complete Solutions Latest Update 2024
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ECON 104 - Study Guide With CompleteSolutions Latest Update 2024
Social anthropologists have found evidence suggesting that: - ANS People have
engaged in finance for tens of thousands, probably even hundreds of thousands, of
years
Money is always: - ANS Debt and an asset
Commodity money: - ANS is inherently no different from paper money in that the
value of both depends on what people think it can be exchanged for in the future.
When more money symbols are required to purchase the same amount of real
goods and services that were acquired with a smaller amount of money symbols in
the past, we are experiencing: - ANS price inflation.
Financial transactions: - ANS simultaneously create matching debts and assets.
Banks' reluctance to lend or buy other financial assets during a deep recession can
be due to what Keynes (1936) described as: - ANS a liquidity trap.
One thing that money is not is: - ANS Money is a promise, an expectation, a level
of trust, a convention
,The correct answer is: the value of the alternative use of the commodity used as
money.
Financial transactions can fail to be carried out even when there are potential
gains to both lenders and borrowers for several reasons, including (mark all
correct answers): - ANS the problem of adverse selection.,
the problem of moral hazard.,
a lack of trust.,
the potential for fraud.
Which of the following statements is not true? - ANS A hand shake can never
function as money; only something tangible like a gold coin can reliably serve as
money.
True statements are...
a.
The exact forms of assets/debts that societies use as money depends on how well
they serve the functions of unit of account and store of value, that is, how clearly
and reliably it can be judged in terms of its current and future exchange values.
b.
A hand shake can never function as money; only something tangible like a gold
coin can reliably serve as money.
c.
,"Money things" like coins and dollar bills are only representations or recognizable
symbols of the underlying trust that someone will provide real things in exchange
for it in the future.
There are essentially two types of money that make up the money supply in the
United States today: - ANS base money and bank money.
Finance can be described as: - ANS a.
all the different forms of borrowing and lending.
b.
all the ways in which we conduct inter-temporal exchanges.
c.
the exchange of something of value today for a promise of something of value at
some future time.
Checking accounts are generally called: - ANS demand deposits.
Which of the following statements is(are) true? - ANS b.
The government can enhance the value of money by requiring that all finance be
stated in terms of money values and all debt be settled using that money.
c.
The government can enhance the acceptance and use of money by requiring all
taxes be paid with money.
, Financial transactions are a characteristic of modern economies; there was no
finance in economies prior to the emergence of capitalism. - ANS False
US Treasury bonds are bought and sold on: - ANS an over-the-counter market in
which a small number of large private dealers are the market makers.
According to the economist Kenneth Boulding (1956, p. 198), scientific progress is
threatened by increasing specialization, which was leading to "isolated subcultures
with only tenuous lines of communication between them...One wonders
sometimes if science will not grind to a stop in an assemblage of walled-in hermits,
each mumbling to himself words in a private language that only he can
understand." Boulding therefore urges economists to embrace systems theory
when they engage in economic analysis. - ANS True
Frederick Engels postulated three laws of dialectics from his reading of Hegel, but
these do not include: - ANS The law of historical recurrence.
Does include...
a.
The law of the passage of quantitative changes into qualitative changes.
b.
The law of the unity and conflict of opposites.
c.
The law of the negation of the negation.
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