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Chapter 6

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14 views

Chapter 6

Uploaded by

frnhrjzf5x
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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CHAPTER 6

1. Money
a. is the perfect store of value
b. is the most liquid asset
c. has intrinsic value in any form of money
d. All of the above sentences are correct
2. Economies that don't use money require
a. Use fiat money.
b. Use commodity money.
c. Double coincidence of interests in transactions. Trong những nền kinh tế
không sử dụng tiền tệ, mọi người phải trực tiếp trao đổi hàng hóa và dịch vụ
với nhau. Điều này đòi hỏi một "sự trùng hợp nhu cầu kép", có nghĩa là cả hai
bên trong một giao dịch đều phải muốn những gì mà người kia đang cung cấp
vào cùng một thời điểm.
d. Money acts as a store of value but not a medium of exchange.
3. When an economy uses silver as money, that economy's money
a. Seen as a store of value, but not as a medium of exchange
b. Considered an intermediary of exchange but not a unit of account
c. Is fiat money
d. Has intrinsic value
4. Money's store of value function can be specifically described as:
a. A conventional measure for pricing.
b. As a guarantee for coincidence of demand.
c. Something that can be kept and then exchanged for other goods.
d. Is a generally accepted unit of exchange.
5. Which of the following is not in M1?
a. VND 50,000 bill in your wallet
b. 2 million VND in ATM account => trong ATM account nên có thể rút bất
cứ lúc nào
c. 10 million dong in savings account
d. All in M1

6. In a 100% reserve banking system, if the public decides to reduce the amount
of cash they hold by increasing the amount deposited in their ATM accounts,
then (giảm tiền mặt, tăng tiền trong ATM)
a. M1 will increase
b. M1 will decrease
c. M1 is unchanged (vì cả 2 cùng thuộc M1)
d. M1 can increase or decrease
7. A person transfers 10 million VND from a 3-month term savings book (M2) to
a term savings book (M1), then:
a. M1 and M2 decrease.
b. M1 decreases and M2 increases.
c. M1 decreases and M2 does not change.
d. M1 increases and M2 remains unchanged
8. Assuming a reserve requirement ratio of 20%, a bank receiving a deposit of
VND100 million will be able to:
a. Loan additional 500 million.
b. Loan additional 100 million.
c. Loan additional 80 million.
d. Loan additional 20 million.
9. Open-market operations:
a. Relating to the central bank buying and selling corporate bonds.
b. Relating to the central bank buying and selling government bonds.
c. Relating to the central bank lending money to commercial banks.
d. Relating to the central bank's control of the exchange rate.
10. When making purchases on the open market, the Central Bank
a. Buy government bonds, and in this way increases the money supply
b. Buy government bonds, and in this way reduces the money supply
c. Sell government bonds, and in this way increases the money supply
d. Sell government bonds, and in this way reduces the money supply

11. Money supply increases when:


a. Government spending increases.
b. The central bank buys government bonds from the public.
c. A resident buys bonds of FPT.
d. FPT sells shares to the public and uses the revenue to build a new factory.
12. To increase the money supply, the Central Bank can
a. Buy government bonds or raise the discount rate
b. Buy government bonds or reduce the discount rate
c. Sell government bonds or raise the discount rate
d. Sell government bonds or reduce the discount rate
13. If the central bank sells government bonds for $1 million, the money supply
will:
a. Reduce by $1 million
b. Increase by 1 million USD.
c. Reduce more than 1 million USD.
d. Increase more than 1 million USD.
14. If the reserve requirement ratio is 10%, banks do not hold excess reserves
and the public only has deposit accounts and does not hold cash. When the
Central Bank sells $10 million bonds to the public,
a. money supply will increase by $10 million
b. money supply will decrease $10 million
c. money supply will increase by $100 million
d. money supply will decrease by $100 million
MS 1 1
Explain: mM = =  mM = =10 => MS = B x mM = $10 x 10 =
B r 10 %
$100 million

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