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WorksheetsMoney supply
Total questions: 36
Worksheet time: 25mins
Currency circulation is part of
M1
M0
M3
The Money Supply is the total_________of money in the economy.
stock
number
amount
figure
The Money supply can be separated into three types.
True
False
________money can be used directly for transactions.
narrow
broad
flat
informal
___________ is also called narrow money.
M1
M2
M3
M0
Broad money consists of___________plus savings accounts and money market accounts.
M1
M2
M3
M0
Which does NOT form part of narrow Money
notes and coins
chequing deposits
travelers cheque
money market accounts
______________ refers to how quickly and with what risks an asset can be converted into money.
Validity
Liquidity
Monopoly
Transactions
The ___________ controls the money supply.
commercial bank
central bank
development bank
credit union
We use coins to purchase large items
True
False
Mr. Chan sells his NCDs issued by a restricted licence bank for HK$200 000. He then deposits HK$150 000 of the amount with a deposit - taking company as time deposits and holds the remaining HK$50 000 as cash. The immediate effects of the above actions on the money supply in Hong Kong dollar are:
M1, M2 and M3 will increase.
M1 and M3 will increase while M2 will remain unchanged.
M1 and M2 will increase while M3 will decrease.
M1 and M2 will increase while M3 will remain unchanged.
Suppose a banking system does not hold any excess reserves and the legal reserve ratio is 25%. Dicky deposits $200 cash with a bank, and the bank lends the excess reserves to Stella. Stella then deposits the amount with another bank, but the bank does not lend out the amount. The deposits of the banking system will increase by _.
$200
$350
$400
$800
Gold is no longer used as money in modern societies. One of the reasons is that it is not _____.
Scarce
Durable
Divisible
Portable
Mr. Wong withdraws HK$10 000 from a deposit - taking company. He then deposits 50% of the amount with a licensed bank as savings deposits and the remaining part a demand deposits. The immediate effects of the above actions on the money supply in Hong Kong dollar are that:
Both M2 and M3 will decrease.
Both M1 and M2 will remain unchanged.
M1 will increase while M2 will remain unchanged.
M1 will increase while M3 will remain unchanged.
M2
Savings account deposits with Post Offices
M3 + Savings account deposits with Post Offices
M1 + Savings account deposits with Post Offices
The type of economy where there is no money, so people trade goods and services for other goods and services is called a (a) economy
Any good that is generally accepted for purposes of trading or repaying debts.
transfer cost
money
dollars
normal goods
What are the Functions of Money
Durable (last long)
Medium of Exchange
Store of Value
Portability (easy to carry)
Unit of Account
Whenever you buy something and use money to purchase it, you are using which function of money?
Store of Value
Divisibility
Unit of Account
Medium of Exchange
Seeing a price tag that says something costs $100 is an example of which function of money
Unit of Account
Medium of Exchange
Store of Value
All of them
Which of the following are considered "money"?
Paper money and coins
Savings accounts
Debit cards (from checking accounts)
Credit cards
Traveler's Checks
The cost of credit is the ______ that must be paid to obtain it.
business
interest
money
nothing
Which one of these is a limitation of barter system
Lack of double coincidence of wants
Lack of store of value
Lack of common measure of value
All of these
Which of the following is not a function of money?
Medium of exchange
Store of value
Decoration
Unit of account
