Week 10 PASS ECON100 (2nd Lec 8 Quiz)

What has been a significant change in the banking sector due to the digitisation of banking?

• The arrival of modern IT internet into the sector

• The decrease in cross-border international payments

• The increase in slow and costly commercial banking services

• The establishment of traditional banking methods

Which of the following is NOT a function of money?

• Medium of exchange

• Unit of account

• Store of value

• Double coincidence of wants

What is a requirement for barter to work effectively?

• Coincidence of wants

• Use of legal tender

• Digital transactions

• Standardised quality

Which of the following is NOT a criterion for something to serve as money?

• It should be durable

• It should be valuable relative to its weight

• It should be easily transported

• It should be available in unlimited quantities

What is the main characteristic that differentiates commodity money from fiat money?

• Commodity money is not backed by a commodity, while fiat money is.

• Commodity money is interchangeable, while fiat money is not.

• Commodity money is issued by a central bank, while fiat money is not.

• Commodity money's value depends on its quality, while fiat money does not.

What does M1 include in the measurement of money supply?

• M1 includes all other deposits of the private non-bank sector with domestic and foreign-owned banks operating in Australia.

• M1 is the value of all demand deposits with banks (currency and assets that can quickly be converted to cash).

• M1 includes deposits into non-bank deposit-taking institutions minus holdings of currency and deposits of non-bank depository corporations.

• M1 is the broadest definition of the money supply which includes certificates of deposit, term deposits, and other assets.

Which of the following is included in Broad Money (M3)?

• Notes and coins in circulation only.

• M1 plus all other deposits of the private non-bank sector with domestic and foreign-owned banks operating in Australia.

• M1 plus deposits into non-bank deposit-taking institutions minus holdings of currency and deposits of non-bank depository corporations.

• Only certificates of deposit, term deposits, and deposits with banks from building societies, credit unions, and other authorised deposit-taking institutions.

What are Demand Deposits?

• Deposits that can only be accessed at certain times of the year.

• Deposits that are transferable by cheque, by debit cards at EFTPOS terminals, and through electronic transfer between accounts.

• Deposits that are held for a fixed term and cannot be accessed until the term ends.

• Deposits that are only repayable in notes and coins.

Does Bitcoin function as money in the context of being a medium of exchange?

• Yes, it serves as a medium which is traded in real markets

• No, it does not serve as a medium which is traded in real markets

• Yes, prices are quoted in bitcoin

• No, it is only used for illegal transactions

What is Bitcoin's role as a store of value compared to gold?

• Bitcoin is less volatile than gold

• Bitcoin represents a similar value of gold

• Bitcoin is not considered a store of value

• Gold is not considered to be the hedge against inflation