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WorksheetsPRE TEST LAB 4
Total questions: 15
Worksheet time: 15mins
Name
Class
Date
1.
Economist use the term “money” to refer to…
a)
the value of a person’s asset
b)
the value of stocks and bonds
c)
those assets regularly used to buy goods and services
d)
the less efficient form of barter
e)
income generated by the production of goods and services <br />
2.
“Money is a way to transfer purchasing power from the present to the future” is one of the purpose of money serves as…
a)
unit of account
b)
medium of exchange
c)
liquidity
d)
store of value
e)
currency
3.
All of the following are the characteristic of fiat money, except…
a)
Established by government decree
b)
doesn’t represent an asset in a vault
c)
the supply must be limited
d)
it must be uniform
e)
has intrinsic value
4.
Vini buys 3 eggs by selling a loaf of a bread and Wahida give her loaf of bread to Vini for 3 eggs. It is possible because this exchange requires…
a)
It requires low liquidity
b)
It requires fiat money
c)
it requires commodity money
d)
It requires a double coincidence of wants
e)
It requires paper bills and coins
5.
Which of the following is true about the measures of money?
a)
M2 is less liquid and larger than M1
b)
C includes the least liquid asset
c)
M1 is more liquid and larger than M2
d)
C is more liquid and larger than M2
e)
M1 is less liquid and smaller than C
6.
Which of the following assets are included in M2, but not included in M1?
a)
Money market mutual funds
b)
currency
c)
traveler’s checks
d)
demand deposits
e)
checkable deposits
7.
Bank Indonesia does all of the following, except…
a)
Control the supply of money
b)
Control the value of money
c)
Regulate the banking system
d)
Make loans to individual
e)
Act as the lender of the last resort
8.
The supply of money will increase when the Central Bank…
a)
sells government bonds
b)
increase the required reserve ratio
c)
reduces the discount rate
d)
borrows from member banks
e)
transferring funds from savers to borrowers
9.
The number of money created by the banking system for each reserve one dollar is called…
a)
monetary base
b)
money supply
c)
high-powered money
d)
Fiat Money
e)
money multiplier
10.
Under …………… system, Banking creates money because each dollar of reserves generates many dollars of demand deposits.
a)
100-percent reserve banking
b)
Commodity money system
c)
Commodity-based money system
d)
Fractional-reserve banking
e)
Fiat money system
11.
If the central bank in some country lowered the reserve ratio, the money multiplier…
a)
would increase
b)
would not change
c)
would decrease
d)
could do any of the above
e)
none of the above
12.
Leverage ratio is…
a)
ratio assets to bank capital
b)
ratio assets to liabilities
c)
ratio assets to loans
d)
ratio assets to securities
e)
ratio assets to debt
13.
The key determinant of the money multiplier is…
a)
monetary base
b)
currency
c)
reserve ratio
d)
demand deposits
e)
leverage
14.
If financial crisis happened and BI stood ready to lend financial institutions funds to prevents Indonesia’s banking system from falling. This act is described BI’s role as…
a)
provider of financial services
b)
controller of the money supply
c)
preventer of inflation
d)
lender of the last resort
e)
regulatory authority of monetary policy
15.
During wars, the society tends to hold relatively more currency and relatively fewer deposits. This decision makes reserves…
a)
decrease and the money supply increase
b)
decrease and the money supply decrease
c)
increase, but leaves the money supply unchanged
d)
decrease, but leaves the money supply unchanged
e)
both reserves and money supply unchanged
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