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WorksheetsPractice 4 Money and Inflation and Open Economy
Total questions: 10
Worksheet time: 9mins
Suppose you bought game on SteamTM last year for Rp500,000 and you buy the same game again this year for the price of Rp700,000. What does this phenomenon called?
a. Inflation
b. Increase in price of goods
c. Investment
d. Long-term depreciation
e. All the above
Central Bank control money supply through these policies, except
a. Reserve Requirement
b. BI 7 Days Reverse Repo Rate
c. Interest on Reserve
d. Qualitative Approach
e. Controlling nominal exchange rate
What is the formula for money multiplier?
a. 1:rr x money supply
b. 1/rr
c. 1/rr x initial deposits
d. Deposits + reserves
e. Loan + reserve
Why did we shift our means of payment from gold to fiat money?
a. Gold has no value
b. Gold has less value than fiat money
c. Effectiveness and Efficiency
d. Fiat money has intrinsic value
e. Gold has no intrinsic value
These are the methods to calculate inflation:
a. All of them
b. GDP deflator
c. CPI
d. PPI
e. B and C correct
Does expected value of Rp to USD next year has effect on money demand in FX market?
a. Of course
b. I really don’t know
c. Perhaps
d. What?
e. No
What is the Layman’s View on inflation
a. No inflation means that there will be no raise in wage
b. No inflation means that there will be raise in real wage
c. Inflation will decrease productivity
d. Inflation will have no impact on productivity
e. Zero-inflation is the best course of policy to pursue by central bank
“The increase use of credit card will affect money supply in long term”, does this statement true?
a. No, but it will affect in short term
b. Yes, but it will not affect in short term
c. Yes
d. No
e. I don’t even have an opinion
Shelby Co. is a company mainly focus on export and import business. If suddenly country in which Shelby Co. operate had decided to become closed economy, could Shelby Co. continue to export and import?
a. Yes
b. No
c. I don’t know
d. Perhaps
e. What?
What is the primary way of central bank to control money supply?
a. Reserve Requirement
b. BI 7 Days Reverse Repo Rate
c. Interest on Reserve
d. Qualitative Approach
e. Open market operations
