An outward shift in the demand for money, other things being equal, should lead to:

A higher quantity of money but lower interest rates

What is the gold standard?

value of a currency was defined in terms of gold

Which of the following is the definition of money supply?

the total amount of money in circulation

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Chapter 10:Money and Banking

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Vocab Quiz

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Questions 12

Answers

1
What caused the Great Depression?
Crash of the Stock Market
Wall street being stupid
Over-speculation
Fiscal irresponsibility
2
An outward shift in the demand for money, other things being equal, should lead to:
A higher quantity of money but the same interest rate
A higher quantity of money but lower interest rates
A higher interest rate but the same quantity of money
A lower interest rate but the same quantity of money
3
The information on a credit card is read by
Both
store readers
None
ATMs
4
What is the gold standard?
value behind money
speculation of gold in relation to currency
value of a currency was defined in terms of gold
value behind currency is backed by silver
5
Each federal reserve bank:
operates a nation-wide payments system.
supervises and regulates banks in its district.
distributes coin and currency.
does all of the above.
6
The Fed primarily operates by setting a short-term target for the _______.
Federal Funds Rate
None
Required Reserve Ratio
Discount Rate
7
Which of the following is the definition of money supply?
the total amount of money in circulation
deposit of money that can be withdrawn without prior notice
the availability of liquid assets to a market or company
the trade in short-term loans between financial institutions
8
A reduction in the money supply is likely to:
increase the interest rate
decrease inflation
increase inflation
Reduce the interest rate
9
Which of the following are characteristics of money?
Portability
Longevity
Thickness
Colorfulness
10
Which device is used to "read" your credit card information?
card reader
Neither
Both
magstripe reader
11
The largest asset of the Federal Reserve Banks is:
U.S. government securities.
Federal Reserve notes.
gold certificates.
member bank reserves.
12
To reduce the supply of money the government could:
Sell Government Bonds
Reduce Interest Rates
Encourage Banks to Loan
Buy back government bonds

Chapter 10:Money and Banking Flashcards | StudBud