WorksheetsMacroeconomics - money market
Total questions: 11
Worksheet time: 51mins
What function of money is met, when you purchase some grocery in a nearby shop?
Medium of exchange
Unit of account
Storing value
Creation of money
What function of money is met, when you open a saving deposit?
Medium of exchange
Unit of account
Storing value
Creation of money
Money, which value is related to gold or silver
is called comodity money.
is called fiat money.
has to be made from gold or silver.
could be made of paper.
Fiat money
is not a real money.
does not have any intristic value.
has a value related to comodities, such as gold.
is not popular, as it has a limited use (cannot be exchanged for other currencies)
Złoty
was originally made of gold.
was first a unit of account.
coins were introduced in XVII ceuntry.
paper bills were introduced in XX ceuntry.
Reserve requirement is the minimum fraction of customer (a) that each bank must hold as a reserve.
Suppose, the reserve ratio is equal rr=5% . What is the money multiplier?
105%
10
20
25
M2 measure of money supply includes
currency
demand deposits
saving deposits
large time deposits
According to the quantity theory of money
M×Y=V×P
M×V=P×Y
M=P×Y
Inflation
measures the growth of GDP
measures the percentage growth of prices.
can be computed as π=PΔP
Suppose, the velocity of money is constant, the money supply increases by 5% and GDP grows by 2%. What is the predicted level of inflation?
2%
3%
5%
7%
