
Yr12: Understanding the Money Market and Monetary Policy

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Other
•
12th Grade
•
Hard
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10 questions
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1.
FLASHCARD QUESTION
Front
What is the narrowest definition of money referred to in the text?
Back
M1 money
2.
FLASHCARD QUESTION
Front
Which of the following is included in M1 money? Stocks, Real estate, Traveler checks, Bonds
Back
Traveler checks
3.
FLASHCARD QUESTION
Front
What does the money market graph primarily show?
Back
Supply and demand for money
4.
FLASHCARD QUESTION
Front
Why is cash considered to have high liquidity?
Back
It is easy to convert to other forms
5.
FLASHCARD QUESTION
Front
What happens to the quantity demanded of money when interest rates fall?
Back
It increases
6.
FLASHCARD QUESTION
Front
What is NOT a shifter of the demand for money? Price level, Income, Technology in banking, Stock market performance
Back
Stock market performance
7.
FLASHCARD QUESTION
Front
What does the vertical supply curve of money indicate?
Back
It is set by the central bank
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