mishkin194179tb03.docx

1、mishkin194179tb03Chapter 3What Is Money?1Multiple Choice1) There is no single precise measure of money or the money supply for economists because (a) the government considers money supply statistics to be confidential and refuses to publish them. (b) deciding what is generally accepted in payment fo

2、r goods and services or in the repayment of debt is difficult to determine. (c) economists cannot agree if currency should be considered money. (d) of each of the above. (e) of both (a) and (b) of the above. Answer: BQuestion Status: Previous Edition2) Economists find no completely satisfactory way

3、to measure money because (a) money supply statistics are a state secret. (b) the Federal Reserve does not employ or report different measures of the money supply. (c) the “moneyness” or liquidity of an asset is a matter of degree. (d) economists find disagreement interesting and refuse to agree for

4、ideological reasons. Answer: CQuestion Status: Previous Edition3) Currency includes (a) paper money and coins. (b) paper money, coins, and checks. (c) paper money and checks. (d) paper money, coins, checks, and savings deposits. Answer: A Question Status: Previous Edition4) The difference between mo

5、ney and income is that (a) money is a flow and income is a stock. (b) money is a stock and income is a flow. (c) there is no differencemoney and income are both stocks. (d) there is no differencemoney and income are both flows. Answer: BQuestion Status: Previous Edition5) It is true that(a) income a

6、nd wealth are both stocks.(b) money and income are both stocks.(c) income is a flow and wealth is a stock.(d) money and wealth are both flows.(e) money and income are both flows.Answer: CQuestion Status: New6) When people say, “Bill Gates sure is rich, he has a lot of money,” they probably mean that

7、 Bill Gates (a) has a large checking account balance. (b) is quite wealthy. (c) has a relatively high income. (d) all of the above. (e) only (a) and (b) of the above. Answer: DQuestion Status: Previous Edition7) An individuals annual salary is her(a) money.(b) income.(c) wealth.(d) liabilities.(e) a

8、ssets.Answer: BQuestion Status: New8) A persons house is part of her(a) money.(b) income.(c) liabilities.(d) wealth.(e) all of the above.Answer: DQuestion Status: New9) A persons checking deposits are part of her(a) money.(b) income.(c) wealth.(d) all of the above.(e) only (a) and (c) of the above.A

9、nswer: EQuestion Status: New10) A penny collection is (a) money.(b) income.(c) wealth.(d) all of the above.(e) only (a) and (c) of the above.Answer: EQuestion Status: New11) Money is (a) anything that is generally accepted in payment for goods and services or in the repayment of debt. (b) frequently

10、but incorrectlyused synonymously with wealth. (c) paper money, coins, and checks. (d) all of the above. (e) only (a) and (c) of the above. Answer: D Question Status: Revised12) Money is (a) anything that is generally accepted in payment for goods and services or in the repayment of debt. (b) frequen

11、tlybut incorrectlyused synonymously with wealth. (c) a flow of earnings per unit of time. (d) all of the above. (e) only (a) and (b) of the above. Answer: E Question Status: Previous Edition13) Which of the following are true statements? (a) Wealth is the total collection of pieces of property that

12、are a store of value. (b) Money is frequently confused with income. (c) Income is a flow of earnings per unit of time. (d) All of the above are true. (e) Only (a) and (b) of the above are true. Answer: D Question Status: Previous Edition14) Which of the following are true statements? (a) Wealth is t

13、he total collection of pieces of property that are a store of value. (b) Money is a stock; it is a certain amount at a given point in time. (c) Income is a flow of earnings per unit of time. (d) All of the above are true. (e) Only (a) and (b) of the above are true. Answer: D Question Status: Previou

14、s Edition15) Which of the following are true statements? (a) Wealth is the total collection of pieces of property that are a store of value. (b) Money is a flow variable. (c) Income is a stock variable. (d) All of the above are true. Answer: A Question Status: Previous Edition16) Of moneys three fun

15、ctions, the one that distinguishes money from other assets is its function as a (a) store of value. (b) unit of account. (c) standard of deferred payment.(d) medium of exchange. Answer: D Question Status: Previous Edition17) Some of the forms money has taken throughout history include (a) tobacco.(b

16、) cigarettes.(c) wampum.(d) all of the above. Answer: D Question Status: Revised18) If peanuts serve as a medium of exchange, a unit of account, and a store of value, then peanuts are(a) bank deposits.(b) reserves.(c) money.(d) loanable funds.(e) all of the above.Answer: CStudy Guide19) When an econ

17、omist states that barter is impossible, she doesnt really mean that barter is impossible. Her real meaning is that(a) barter transactions are relatively costly.(b) barter has no useful place in todays world.(c) it is impossible for barter transactions to leave parties to an exchange better off.(d) b

18、arter is illegal.(e) each of the above is true.Answer: AQuestion Status: Study Guide20) A problem with barter exchange is that barter requires(a) a double coincidence of wants.(b) specialization.(c) standardization.(d) mutual respect.(e) a common denominator to determine prices.Answer: AQuestion Sta

19、tus: New21) The problem of the double coincidence of wants can be avoided if (a) trade is organized in a central market.(b) money is used to facilitate exchanges. (c) barter trades are encouraged. (d) both (a) and (b) of the above. Answer: B Question Status: Previous Edition22) The conversion of a b

20、arter economy to one that uses money increases efficiency by reducing (a) the need to exchange goods. (b) the need to specialize. (c) the need to employ team production methods. (d) transactions costs. Answer: D Question Status: Previous Edition23) The conversion of a barter economy to one that uses

21、 money (a) increases efficiency by reducing the need to exchange goods and services. (b) increases efficiency by reducing the need to specialize. (c) increases efficiency by reducing transactions costs. (d) does not increase economic efficiency. Answer: C Question Status: Previous Edition24) Which o

22、f the following are true statements? (a) The conversion of a barter economy to one that uses money increases efficiency by reducing the cost of exchange. (b) The conversion of a barter economy to one that uses money increases efficiency by reducing the cost to those who wish to specialize. (c) The c

23、onversion of a barter economy to one that uses money increases efficiency by reducing transactions costs. (d) All of the above are true. (e) Only (a) and (c) of the above are true. Answer: D Question Status: Previous Edition25) Which of the following are true statements? (a) The conversion of a bart

24、er economy to one that uses money increases efficiency by increasing the cost of exchange. (b) The conversion of a barter economy to one that uses money increases efficiency by increasing the cost to those who wish to specialize. (c) The conversion of a barter economy to one that uses money increase

25、s efficiency by reducing transactions costs. (d) All of the above are true. Answer: C Question Status: Previous Edition26) Which of the following are true statements? (a) The conversion of a barter economy to one that uses money increases efficiency by increasing the cost of exchange. (b) The conver

26、sion of a barter economy to one that uses money increases efficiency by reducing the cost to those who wish to specialize. (c) The conversion of a barter economy to one that uses money does not increase economic efficiency. (d) All of the above are true. Answer: B Question Status: Previous Edition27

27、) When compared to exchange systems that rely on money, disadvantages of the barter system include: (a) the requirement of a double coincidence of wants. (b) increasing the cost of exchanging goods over time. (c) raising the cost of exchange to those who would specialize. (d) all of the above. Answe

28、r: D Question Status: Previous Edition28) When compared to exchange systems that rely on money, disadvantages of the barter system include: (a) the requirement of a double coincidence of wants. (b) lowering the cost of exchanging goods over time. (c) lowering the cost of exchange to those who would

29、specialize. (d) all of the above. Answer: A Question Status: Previous Edition29) Because it is a medium of exchange, money (a) eliminates the requirement for a double coincidence of wants. (b) encourages specialization. (c) reduces transaction costs. (d) does all of the above. (e) does only (a) and

30、(b) of the above. Answer: D Question Status: Previous Edition30) Because it is a medium of exchange, money (a) encourages specialization and the division of labor. (b) reduces transaction costs. (c) is not allowed to earn interest. (d) does all of the above. (e) does only (a) and (b) of the above. A

31、nswer: E Question Status: Previous Edition31) Because it is a medium of exchange, money (a) discourages specialization and the division of labor. (b) reduces transaction costs. (c) is not allowed to earn interest. (d) does only (b) and (c) of the above. Answer: B Question Status: Previous Edition32) Because it is a medium of exchange, money (a) does not earn interest. (b) eliminates the requirement for a double coincidence of wants. (c) must be currency. (d) cannot be a durable asset. Answer: B