Economics Quiz (3rd Term) Year 11

What are the motives for holding money according to Lord Keynes?

• Three major motives: transactionary, precautionary, and speculative

• Four major motives: transactionary, speculative, investment, and precautionary

• Two major motives: investment and speculative

• Five major motives: savings, investment, speculative, precautionary, and transactionary

What is demand for money?

• The desire to hold money in liquid form

• The total amount of money available in an economy

• The amount of money spent on goods and services

• The desire to invest money in stocks and bonds

What is a money market?

• A market where long-term investments are made

• A market for trading goods and services

• A market for the buying and selling of short-term securities

• A government institution that regulates banks

What type of security represents ownership in a company?

• Treasury bill

• Bond

• Share (stock)

• Debenture

What is the definition of inflation?

• A persistent decrease in the general level of prices

• A measure of economic growth

• A persistent rise in the general level of prices

• A temporary increase in the general level of prices

What is the term used to describe a situation where the total demand in the economy exceeds the total supply of goods and services?

• Inflation gap

• Inflation spiral

• Disinflation

• Reflation

What is the term for the study of government income and expenditure?

• Monetary policy

• Public finance

• Fiscal policy

• Macroeconomics

Which of the following is NOT a source of government revenue?

• Taxes

• Royalties

• Borrowing money

• Selling government-owned businesses

What is the compulsory payment made by citizens to the government?

• Fee

• Tax

• Donation

• Grant

Which of the following is NOT a reason for imposing taxes?

• To raise revenue for the government

• To control inflation

• To create jobs

• To redistribute income