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- 1. Multiple Choice
Which of the following are the functions of money? Multi-select options.
As a medium of exchange
As a store of wealth
As a means of valuating different types of goods and services
As a mean of establishing future claims and payments
- 2. Multiple Choice
Macroprudential regulation focuses not on a single financial institution but on the financial system as whole, and which monitors its impact on the wider economy. Is this statement true or false?
True
False
- 3. Multiple Choice
Too low a liquidity ratio mean that the bank would not be able to meet its customers' demand for cash. To high a liquidity ratio means that the bank is not making as much profit as it could. Are these Two statements true or false? select two options.
The first statement is false
The first statement is true
The second statement is false
The second statement is true
- 4. Multiple Choice
What would be the effect on the demand for money curve (L) of a rise in the bond prices?
L would shift to the left
There would not be an effect
L would shift to the right
There would be a movement down along L
- 5. Multiple Choice
The amount of banknotes issued by the Bank of England depends largely on the demand for notes from the general public. Is this statement true or false?
True
False
- 6. Multiple Choice
It is common to distinguish three motives for holding money: the transactions motive, the precautionary motive, and the speculative motive. The principal determinant of the size of transaction balances is:
Tastes
National Income
Interest rates
- 7. Multiple Choice
The process by which banks increase the money supply is known as money creation. The amount by which the money supply can increase depends on their liquidity ratio. If the bank decides to hold a lower liquidity ratiom the bank multiplier will ____________________.
increase
reduce
stay the same
- 8. Multiple Choice
Cam won £1,000 at a bingo game. He deposits his £1000 winnings into a building society account, so that he can use the money next year to pay his daughter free courses. This is an example of money seving as:
a store of value
a medium of exchange
a unit of account
an investment good
- 9. Multiple Choice
Consumption of domestically produced goods and services plus injections (Cd + J) is known as:
aggregate supply
aggregate income
national expenditure
total consumption
- 10. Multiple Choice
A repo is where a bank sell some assets (e.g. bonds) and agrees to buy them back at a particular price after a set period of time. Is this statement true or false?
True
Flase
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