UBE W0 Money functions and Central bank overall quiz

Which one of the following is money in Vietnamese economy?

• a VND 500,000 note
• a euro
• a Picasso painting
• a credit card

Which one is the most liquid?

• a gold necklace
• a VND 500,000 note in your pocket
• shares of Microsoft
• an apartment in Royal City

An open market purchase by the Fed

• Increase reserves, loans and MS
• decrease reserves, loans and MS
• Increase reserves, loans and decrease MS
• decrease reserves, loans and increase MS

Fed makes an OMO purchase of $3 mil. Money multiplier =2, how does MS change

• up by 1.5mil
• down by 1.5mil
• up by 6mil
• down by 6mil

The economy contains 2000 $1 notes. Calculate the quantity of money if people hold all money as currency

• 0
• 2000
• 4000
• 20000

The economy contains 2000 of $1 note. If people hold equal amounts currency & demand deposits, RR =100% reserves, what is the money supply?

• 0
• 2000
• 4000
• other

The economy contains 2,000 $1 notes. Calculate the quantity of money if people hold all money as demand deposits, RR =10% reserves?

• 0
• 200
• 2,000
• 20,000