WorksheetsKTVM
Total questions: 51
Worksheet time: 18mins
Name
Class
Date
1.
In 2016, 1 liter gas in VN = 25VND. In 2020, 1 liter gas in VN = 14VND. Given the fact that gasoline in Vietnam imported from overseas, the price reduction of gasoline can be reflected in ?
a)
CPI
b)
GDP
c)
Both CPI and GDP
d)
Neither in CPI nor GDP
2.
As opposed to a payments system based on barter, a payments system based on money ?
a)
requires a double coincidence of wants
b)
leads to less specialization
c)
makes trades less costly
d)
None of the above is correct
3.
Money is the most liquid asset available because
a)
it is a store of value
b)
it is a medium of exchange
c)
it is a unit of account
d)
it has intrinsic value
4.
Which of the following is a function of money?
a)
a unit of account
b)
a store of value
c)
medium of exchange
d)
all of the above are correct
5.
Which list ranks assets from most to least liquid?
a)
money, bonds, cars, houses
b)
money, cars, houses, bonds
c)
bonds, money, cars, houses
d)
bonds, cars, money, houses
6.
M1 includes
a)
currency
b)
demand deposits
c)
traveler's checks
d)
all of the above are correct
7.
Which of the following is not included in M1?
a)
currency
b)
demand deposits
c)
traveler's checks
d)
credit cards
8.
Which of the following items is included in M2?
a)
credit cards
b)
money market mutual funds
c)
corporate bonds
d)
large time deposits
9.
The agency responsible for regulating the money supply in the US is
a)
the Comptroller of the Currency
b)
the US Treasury
c)
the Federal Reserve
d)
the US Bank
10.
On a bank's T-account, which are part of the banks liabilities?
a)
both deposits made by its customers and reserves
b)
deposits made by its customers but not reserves
c)
reserves but not deposits made by its customers
d)
neither deposits made by its customers nor reserves
11.
In a system of 100% reserve banking,
a)
banks do not make loans
b)
currency is the only form of money
c)
deposits are bank's only assets
d)
all of the above are correct
12.
A bank which must hold 100 reserves opens in an economy that had no banks and a currency of $100. If customers deposit $50 into the bank, what is the value of the money supply?
a)
50
b)
100
c)
150
d)
200
13.
If $300 of new reserves generates $800 of new money in the economy, then the reserve ratio is
a)
0.027
b)
0.125
c)
0.375
d)
0.4
14.
If the reserve ratio is 10%
a)
100
b)
10
c)
0.9
d)
0.1
15.
If a bank that desires to hold no excess reserves and has just enough reserves to meet the required reserve ratio of 10% receives a deposit of $400 it has a
a)
$400 increase in excess reserves and no increase in required reserves
b)
$400 increase in required reserves and no increase in excess reserves
c)
$360 increase in excess reserves and a $40 increase in required reserves
d)
$40 increase in excess reserves and a $360 increase in required reserves
16.
A bank has $10,000 in deposits and $8,000 in loans. It has loaned out all it can given the reserve requirement. It follows that the reserve requirement is
a)
0.02
b)
0.125
c)
0.2
d)
0.8
17.
When the Fed conducts open-market purchases
a)
it buys treasury securities, which increases the money supply
b)
it buys treasury securities, which decreases the money supply
c)
it borrows money from member banks, which increase the money supply
d)
it lends money to member banks, which decreases the money supply
18.
The interest rate that the Fed charges banks that borrow reserves from it is the
a)
federal funds rate
b)
discount rate
c)
reserve requirement
d)
prime rate
19.
Which types of economies interact with other economies?
a)
only closed economies
b)
only open economies
c)
closed economies and open economies
d)
neither closed nor open economies
20.
Foreign-produced goods and services that are purchased domestically are called
a)
imports
b)
exports
c)
net imports
d)
net exports
21.
A country sells more to foreign countries than it buys from them. It has
a)
a trade surplus and positive net exports
b)
a trade surplus and negative net exports
c)
a trade deficit and positive net exports
d)
a trade deficit and negative net exportss
22.
One year a country has positive net exports. The next year it still has positive but larger net exports
a)
its trade surplus fell
b)
its trade surplus rose
c)
its trade deficit fell
d)
its trade deficit rose
23.
If a country has net exports of $8 billion and sold $40 billion of goods and services abroad, then it has
a)
$48 bil of imports & $40 bil of exports
b)
$48 bil of exports & $40 bil of imports
c)
$40 bil of imports & $32 bil of exports
d)
$40 bil of exports and $32 bil of imports
24.
Tom and Anthony are both U.S. citizens.
Tom buys construction machinery from a
company in Canada to use for his U.S
construction company. Anthony opens a
cafe in Portugal. Whose action is an
example of U.S. foreign direct investment
a)
Tom’s but not Anthony’s
b)
Anthony’s but not Tom’s.
c)
Anthony’s and Tom’s
d)
Neither Anthony’s nor Tom’s
25.
An open economy's GDP is always given
by
a)
Y = C + I + G
b)
Y = C + I + G + T.
c)
Y = C + I + G + S
d)
Y = C + I + G + NX
26.
If a country has Y > C + I + G, then it has
a)
positive net capital outflow and positive
net exports
b)
positive net capital outflow and negative
net exports
c)
negative net capital outflow and positive net exports.
d)
negative net capital outflow and negative
net exports
27.
If a country exports more than it imports,
then it has
a)
positive net exports and positive net capital
outflows.
b)
positive net exports and negative net capital
outflows.
c)
negative net exports and positive net capital
outflows.
d)
negative net exports and negative net capital
outflows.
28.
U.S. exports are $400 billion, U.S.
imports are $900 billion. Which of the
following are consistent with the level of
net exports?
a)
The U.S has a trade surplus. The U.S. purchases $800 of foreign
assets and foreign countries purchase $300 of U.S. assets
b)
The U.S. has a trade surplus. The U.S. purchases $300 of foreign
assets and foreign countries purchase $800 of U.S. assets.
c)
The U.S has a trade deficit. The U.S. purchases $800 of foreign
assets and foreign countries purchase $300 of U.S. assets.
d)
The U.S. has a trade deficit. The U.S. purchases $300 of
foreign assets and foreign countries purchase $800 of U.S.
asset.
29.
If a U.S. textbook publishing company
sells texts overseas, U.S. net exports
a)
increase, and U.S. net capital outflow
increases.
b)
increase, and U.S. net capital outflow decreases
c)
decrease, and U.S. net capital outflow increases.
d)
decrease, and U.S. net capital outflow decreases
30.
If sales of Saudi Arabian oil to the rest of
the world increase and Saudis use the
proceeds to buy foreign goods, which of
the following increases?
a)
Saudi Arabian net exports but not Saudi Arabian net
capital outflow
b)
Saudi Arabian net capital outflow but not Saudi Arabian
net exports
c)
both Saudi Arabian net exports and net capital outflow
d)
neither Saudi Arabian net exports nor net capital
outflow
31.
A country has $45 million of domestic
investment and net capital outflow of -$60
million. What is its saving?
a)
$15 million.
b)
-$15 million
c)
$105 million
d)
-$105 million.
32.
The nominal exchange rate is the
a)
nominal interest rate in one country
divided by the nominal interest rate in the
other country.
b)
the ratio of a foreign country’s interest
rate to the domestic interest rate.
c)
rate at which a person can trade the
currency of one country for another
d)
the real exchange rate minus the inflation
rate.
33.
If the exchange rate were 5 Egyptian
pounds per U.S. dollar, a watch that costs
$25 US dollars would cost
a)
125 Egyptian pounds
b)
50 Egyptian pounds
c)
5 Egyptian pounds
d)
None of the above is correct.
34.
You are the CEO of a U.S. firm
considering building a factory in Chile. If
the dollar appreciates relative to the
Chilean peso, then other things the same
a)
it takes fewer dollars to build the factory. By itself
building the factory increases U.S. net capital
outflow.
b)
it takes fewer dollars to build the factory. By itself
building the factory decreases U.S. net capital outflow.
c)
it takes more dollars to build the factory. By itself
building the factory increases U.S. net capital outflow.
d)
it takes more dollars to build the factory. By itself
building the factory decreases U.S. net capital outflow.
35.
If you are vacationing in France and the
dollar depreciates relative to the euro,
then
a)
the dollar buys more euros. It will take fewer dollars to
buy a good that costs 50 euros
b)
the dollar buys more euros. It will take more dollars to
buy a good that costs 50 euros.
c)
the dollar buys fewer euros. It will take fewer dollars to
buy a good that costs 50 euros
d)
the dollar buys fewer euros. It will take more dollars to
buy a good that costs 50 euros.
36.
If the nominal exchange rate e is
foreign currency per dollar, the domestic
price is P, and the foreign price is P*,
then the real exchange rate is defined as
a)
e(P*/P).
b)
e(P/P*).
c)
e + P*/P.
d)
e - P/P*.
37.
Other things the same, the real exchange
rate between U.S. and Belgian goods
would be higher if
a)
prices in the U.S. were higher, or the number
of euro the dollar purchased were higher
b)
prices in the U.S. were higher, or the number of
euro the dollar purchased were lower.
c)
prices in the U.S. were lower, or the number of
euro the dollar purchased were higher.
d)
prices in the U.S. were lower, or the number of
euro the dollar purchased were lower.
38.
Other things the same, the real exchange
rate between American and Mexican
goods would be lower if
a)
prices of Mexican goods were higher, or the
number of pesos a dollar purchased was higher.
b)
prices of Mexican goods were higher, or the
number of pesos a dollar purchased was lower.
c)
prices of Mexican goods were lower, or the number
of pesos a dollar purchased was higher.
d)
prices of Mexican goods were lower, or the number
of pesos a dollar purchased was lower.
39.
If a U.S. dollar purchases 4 Argentinean
pesos, and a gallon of milk costs $2 in
the U.S. and 6 pesos in Argentina what is
the real exchange rate?
a)
3
b)
4/3
c)
3/4
d)
1/3
40.
An appreciation of the U.S. real exchange
rate induces U.S. consumers to buy
a)
fewer domestic goods and fewer foreign
goods.
b)
more domestic goods and fewer foreign
goods
c)
fewer domestic goods and more foreign
goods.
d)
more domestic goods and more foreign
goods
41.
Other things the same, if the U.S. real
exchange rate appreciates, U.S. net
exports
a)
increase and U.S. net capital outflow
decreases
b)
decrease and U.S. net capital outflow
increases.
c)
and U.S. net capital outflow both increase
d)
and U.S. net capital outflow both
decrease
42.
The law of one price states that
a)
a good must sell at the price fixed by law
b)
a good must sell at the same price at all
locations
c)
a good cannot sell for a price greater than the
legal price ceiling.
d)
nominal exchange rates will not vary
43.
Purchasing-power parity describes the
forces that determine
a)
prices in the short run
b)
prices in the long run.
c)
exchange rates in the short run.
d)
exchange rates in the long run.
44.
If purchasing-power parity holds, a dollar
will buy
a)
more goods in foreign countries than in the
United States.
b)
as many goods in foreign countries as it
does in the United States
c)
fewer goods in foreign countries than it does
in the United States.
d)
None of the above is implied by purchasingpower parity
45.
Which of the following does purchasing power parity imply?
a)
The purchasing power of the dollar is the
same in the U.S. as in foreign countries.
b)
The price of domestic goods relative to foreign
goods cannot change.
c)
The nominal exchange rate is the ratio of U.S.
prices to foreign prices
d)
All of the above are correct.
46.
When a local manufacturer raises the price of the industrial tractors it produces, the GDP deflator of the country rises, but the CPI does not.
a)
True
b)
False
47.
An increase in the saving interest rate from 5% to 10% in Japan would shift the supply curve of loanable funds to the right.
a)
True
b)
False
48.
An appreciation of the Vietnam real exchange rate induces
Vietnamese consumers to buy fewer domestic goods and more foreign goods.
(Sự tăng giá của tỷ giá hối đoái thực của Việt Nam khiến cho người tiêu dùng Việt Nam mua ít hàng nội và mua nhiều hàng ngoại)
a)
True
b)
False
49.
When the government spends more than it receives in tax revenue, the interest rate rises.
a)
True
b)
False
50.
Which of the following does NOT help reduce frictional unemployment ?
a)
Government-run employment agencies
b)
Public training programs
c)
Unemployment insurance
51.
Printing money is finance government expenditures
a)
Causes the value of money to rise
b)
Is like imposing a tax on everyone who holds money
c)
Is the principal method by which the government finances its expenditures
100 %
