WorksheetsMACROECONOMICS -MONEY & BANKING
Total questions: 10
Worksheet time: 5mins
Barter trading will occur when there is
singularity of interests
bargaining intermediary
double coincidence of wants
sufficient supply of cash
If George keeps a part of his earnings as cash in the safety deposit box, then he is employing money as
a store of value
a measure of value
a medium of exchange
none of the above
M2 can be define as
M1 plus saving accounts
M1 plus all types of deposits
M1 plus narrow money
M1 plus broads money
A reduction in the required reserve ratio will cause
an increase in the demand for money
decrease in the discount rate
decrease i the money supply
an increase in excess reserves
Coins in the people pockets are
excluded from both M1 and M2
included in both M1 and M2
included in M1, but not in M2
included in M2, but not in M1
Money is defined as anything that acts as a medium of exchange
TRUE
FALSE
Barter refers to the direct exchange of one good and services to another goods and services.
TRUE
FALSE
Central bank is owned and controlled by government
TRUE
FALSE
M2 refersto to a broaders definition of money supply and consists of M1 and near money.
TRUE
FALSE
Commercial bank are primary financial depositary institution where the government will keep their money
TRUE
FALSE
