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Tarleton ECO303 quiz 1




Question;6.6666;out of 6.6666 points;A system of barter has substantial transactions;costs because;Answers;taxes under such a system are generally a large;fraction of the value of output.;traders must spend considerable time searching;for trading partners.;the uncertainties of trade result in high legal;fees being incurred to draw up binding contracts.;the uncertainties of trade result in high;insurance premiums.;Question;2;6.6676 out of 6.6676 points;Monetary policy refers to the government's;Answers;decisions on how much money to spend.;decisions on how much money to collect in;taxes.;plans for retiring the national debt.;management of the money supply and interest;rates to achieve macroeconomic objectives.;Question;3;6.6666 out of 6.6666 points;At the beginning of the financial crisis, banks;were hurt by all of the following EXCEPT;Answers;declines in the value of mortgage-backed;securities.;defaults on mortgages by those with subprime;mortgages.;holding too many Treasury bonds.;not being repaid on loans to real estate;developers.;Question;4;6.6666 out of 6.6666 points;Which of the following is NOT a key financial;service provided by the financial system?;Answers;risk sharing;profitability;liquidity;information;Question;5;6.6666 out of 6.6666 points;Economists define money as;Answers;cash in circulation.;deposits in commercial banks.;anything that people are willing to accept in;payment for goods and services or to pay off debts.;bonds issued by large corporations.;Question;6;6.6666 out of 6.6666 points;The financial system is primarily a means by;which;Answers;funds are transferred from savers to borrowers.;money is put into circulation.;the government puts into operation its plans;for the economy.;business firms distribute their goods.;Question;7;6.6666 out of 6.6666 points;Money can BEST be described as;Answers;anything that is generally accepted as payment;for goods and services or in the settlement of debts.;paper that can be used to purchase goods and;services;commodities that have intrinsic value;any form of wealth possessed by consumers;Question;8;6.6666 out of 6.6666 points;Fannie Mae and Freddie Mac both;Answers;sell bonds to investors and use the funds to;purchase mortgages.;help regulate the banking system.;directly lend funds to people seeking;mortgages.;reduce access to funds for mortgages by;purchasing existing mortgages.;Question;9;6.6666 out of 6.6666 points;Barter is;Answers;another name for money.;an exchange of goods and services directly for;goods and services.;the basis for economic specialization.;the main system of exchange in the United;States today.;Question;10;6.6666 out of 6.6666 points;The purchasing power of money;Answers;rises when prices fall.;rises when prices rise.;is set by the Fed in January of each year.;is constant.;Question;11;6.6666 out of 6.6666 points;Which of the following is included in M1, but not;in M2?;Answers;currency;checking account deposits;travelers checks;Everything in M1 is in M2.;Question;12;6.6666 out of 6.6666 points;Which of the following is an example of fiat;money?;Answers;a cowry shell used as money on a South Pacific;island;a gold coin used as money in nineteenth century;England;a Federal Reserve Note used as money in the;twenty-first century United States;a pound of salt used as money in medieval;France;Question;13;6.6666 out of 6.6666 points;In comparing money to shares of Apple stock, we;can say that;Answers;money is a store of value, but shares of Apple;stock are not.;shares of Apple stock are a store of value, but;money is not.;both money and shares of Apple stock are stores;of value.;neither money nor shares of Apple stock are;stores of value.;Question;14;6.6666 out of 6.6666 points;All of the following are characteristics of debit;cards EXCEPT;Answers;payments are deferred until a later date;they can be used like checks;they eliminate the problem of trust since the;bank's computer authorizes the transaction;when used at a store, his bank instantly;credits the store's account with the amount and deducts it from his;account.;Question;15;6.6666 out of 6.6666 points;A "primary market" is a market;Answers;for government securities.;in which newly issued claims are sold to buyers;by borrowers.;in which newly issued claims are sold by savers;to borrowers.;for debt by large or "primary;corporations.


Paper#56678 | Written in 18-Jul-2015

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