Review Chapter 30

Review Chapter 30

University

12 Qs

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Review Chapter 30

Review Chapter 30

Assessment

Quiz

Business

University

Practice Problem

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Created by

Shereen Bacheer

Used 34+ times

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12 questions

Show all answers

1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which list ranks assets from most to least liquid?

currency, fine art, stocks

currency, stocks, fine art

fine art, currency, stocks

fine art, stocks, currency

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

   Money is the most liquid asset available because

it is a store of value

it is a medium of exchange

it is a unit of account

it has intrinsic value

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

When an economy uses silver as money, then that economy’s money

serves as a store of value but not as a medium of exchange

serves as a medium of exchange but not as a unit of account

is fiat money

has intrinsic value

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

You receive money as payment for babysitting your neighbors' children. This best illustrates which function of money?

medium of exchange

unit of account

store of value

liquidity

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which of the following best illustrates the medium of exchange function of money?

You keep some money hidden in your shoe

You keep track of the value of your assets in terms of currency

You pay for your oil change using currency

None of the above is correct

6.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

   The Central Bank does all except which of the following?

It controls the supply of money

It acts as a lender of last resort to banks

It makes loans to large business firms

It tries to ensure the health of the banking system

7.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

   If the reserve ratio is 10 percent, the money multiplier is

100

10

9/10

1/10

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