WorksheetsMONETORY ECONOMIC
Total questions: 10
Worksheet time: 5mins
The functions of money are to serve as a
resource allocator, method of counting and means of income distribution.
measure of value, store of value and medium of exchange.
measure of value, standard of deferred payments and income distributor
unit of account, medium of exchange and resource allocator.
If every person is willing to accept money in payment, rather than goods and services, money serves as a
medium of exchange
unit of account.
store of value.
standard of deferred payment.
anything can be money if it acts as a:
unit of account.
store of value.
medium of exchange.
all of the above.
According to Bank Negara Malaysia (BNM), money supply consists of
fiat money.
narrow near money.
broad near money.
M1, M2 and M3.
Keynes believed that people wanted to hold money for three (3) purposes namely:
i) transaction
ii) precautionary
iii) speculative
iv) wealth
v) liquidity
(i), (ii) and (iii).
(iv) and (v).
(ii), (iii) and (iv).
all of the above.
The main job of Bank Negara Malaysia is to
control the rate of growth of the money supply.
manage the national debt.
provide low-interest loans to all financial institutions.
none of the above.
Which of the following statements is incorrect?
The precautionary demand for money is not related to income.
There is a precautionary demand for money because of uncertainty about the receipt of future income.
The precautionary demand for money is unaffected by the opportunity cost of holding M1 balances.
There is a precautionary demand for money because of unexpected expenditures.
Bank Negara Malaysia is often considered as bankers' bank because it
demands more money than what it has.
lowers the discount rate in order to restrict the money supply.
holds bankers' reserves, provides banks with currency and loans, and clears their checks.
has no monopoly power in printing paper currency.
As the number of goods and services increases, barter becomes
easier because the chance of there being a double coincidence of wants increases.
harder because the chance of there being a double coincidence of wants increases.
easier because the chance of there being a double coincidence of wants decreases.
harder because the chance of there being a double coincidence of wants decreases.
The speculative motive of demand for money depends mainly on the
general price level.
money supply.
interest rate.
level of income.
