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Money
Money
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Flashcards
31 cards
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Practice quiz
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Questions
31
Answers
1
Expectations speed up inflationary and deflationary processes
False
True
2
in the "money market" the short term interest rate is determined
True
False
3
the demand for money has three components: industrical demand, demand as a medium of exchange, expectations
False
True
4
Money
has been created by the state
is the result of a social contract
emerged in an evolutionary process
was invented by the greeks
5
Money is the result of a deliberate entrepreneurial process
False
True
6
commodity money is a money that is very easy to use
False
True
7
the "money market" is the market for money
False
True
8
Money is an economic good
True
False
9
any quantity of money is optimal to fulfill its function
True
False
10
The ceteris paribus effect of deflation is a fall in prices
False
True
11
Money is the commonly accepted medium of exchange
True
False
12
The Cantillon effect says that an increase in the demand for money leads to change in nominal cash balances
False
True
13
Austrian economists define inflation as an increase in the money supply
False
True
14
What is not a reason why gold was chosen as money?
low production costs
homogenous
relatively scarce
immutable
15
In societies with fiat money, money productions occurs through mining and monetization of the public deficit
False
True
16
When the demand for money increases and the productivity in the economy increases, prices tend to
indeterminate
increase
remain constant
fall
17
Direct exchanges are limited due to the problem of the
subjective inequality of valuations
subjective equality of valuations
double coincidence of wants
hegemonic bonds
18
all economic laws, such as the law of marginal utility, apply, also to money
True
False
19
A money certificate is a money substitute
False
True
20
When the supply of money falls and the productivity falls, prices tend to
remain constant
increase
fall
indeterminate
21
Any injection of money (mark wrong answer)
changes the real structure of the economy
changes relative prices
leads to rising prices
leads to redistribution
22
money must be scarce to fulfill its functions
True
False
23
Money is the
allows for capitalist exploitation of workers
last institution that arises to complete the market economy
root of all evil
basis of the emergence of many other institutions
24
money is always hoarded
True
False
25
When there was no money, creative entrepreneurs demanded more saleable goods
False
True
26
The price of money is its purchasing power
True
False
27
there is a tendency of one money to prevail
True
False
28
Money is the quintessential social institutions
True
False
29
the demand for money is the same as the demand for wealth
False
True
30
The Regression Theorem shows
that there is an infinite regress
why our demand for money today is determined by the price of money today
the price of money today depends on the price of money yesterday
that there is circular reasoning in monetary theory
31
the quantity theory of money (equation of exchange) suffers from the following problems (Mark wrong option)
it cannot explain deflation
new money never reaches everyone equally
mechanistic
conceals redistribution, change in relative prices and malinvestments