SI session 1

SI session 1

University

5 Qs

quiz-placeholder

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SI session 1

SI session 1

Assessment

Quiz

Financial Education

University

Practice Problem

Hard

Created by

Ashwin Sundaram

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5 questions

Show all answers

1.

MULTIPLE CHOICE QUESTION

5 mins • 1 pt

Citadelia residents hold 500,000 citadels as currency

Deposit 500,000 citadels in the banks

Reserve Requirement = 10%

5500000

500000

1000000

6000000

2.

FILL IN THE BLANK QUESTION

5 mins • 1 pt

You are selling your car for 2000 dollars on ebay. What function of money are you using

3.

MULTIPLE CHOICE QUESTION

5 mins • 1 pt

Currency 1717.7, Demand Deposits 1564.2, Other checkable deposits 669.4, Saving deposits 9908.7, Small denomination time deposits 582.1, Money Market Mutual Funds 990.1. What's M1 ?

3951.3

1543.2

3281.9

12207.8

4.

MULTIPLE CHOICE QUESTION

2 mins • 1 pt

medium of exchange

Security that pays interest over terms ranging from two to ten years.

Security that matures in a year or less

Money is used in exchange for goods and services needed by individuals, businesses, and governments.

Money is a common measure of what something is worth or price of a good or service

5.

MULTIPLE CHOICE QUESTION

2 mins • 1 pt

What is the effect of a contractionary monetary policy on interest rates?

Interest rates decrease

Interest rates remain unchanged

Interest rates increase

Interest rates fluctuate randomly

Answer explanation

A contractionary monetary policy involves reducing the money supply, leading to higher interest rates as borrowing becomes more expensive.