5学原理》宏观第五版测试题库 29.docx

1、5学原理宏观第五版测试题库 29Chapter 29 The Monetary SystemTRUE/FALSE1. In an economy that relies on barter, trade requires a double-coincidence of wants.ANS: T DIF: 1 REF: 29-0NAT: Analytic LOC: The role of money TOP: BarterMSC: Definitional2. Joe wants to trade eggs for sausage. Lashonda wants to trade sausage

2、 for eggs. Joe and Lashonda have a double-coincidence of wants.ANS: T DIF: 1 REF: 29-0NAT: Analytic LOC: The role of money TOP: BarterMSC: Definitional3. The use of money allows trade to be roundabout.ANS: T DIF: 1 REF: 29-0NAT: Analytic LOC: The role of money TOP: Money | TradeMSC: Definitional4. R

3、oundabout trade is beneficial for an economy.ANS: T DIF: 1 REF: 29-0NAT: Analytic LOC: The role of money TOP: Money | TradeMSC: Definitional5. Money allows people to specialize in what they do best, thereby raising everyones standard of living.ANS: T DIF: 2 REF: 29-0NAT: Analytic LOC: The role of mo

4、ney TOP: MoneyMSC: Interpretive6. When money functions as a unit of account, then it cannot be commodity money.ANS: F DIF: 2 REF: 29-1NAT: Analytic LOC: The role of money TOP: MoneyMSC: Interpretive7. Demand deposits are balances in bank accounts that depositors can access by writing a check.ANS: T

5、DIF: 1 REF: 29-1NAT: Analytic LOC: The role of money TOP: Demand depositsMSC: Definitional8. According to economists, a collection of valuable jewels is not money.ANS: T DIF: 2 REF: 29-1NAT: Analytic LOC: The Study of economics, and the definitions of economicsTOP: Money MSC: Interpretive9. A debit

6、card is more similar to a credit card than to a check.ANS: F DIF: 2 REF: 29-1NAT: Analytic LOC: The Study of economics, and the definitions of economicsTOP: Money MSC: Interpretive10. Garys wealth is $1 million. Economists would say that Gary has $1 million worth of money.ANS: F DIF: 1 REF: 29-1NAT:

7、 Analytic LOC: The role of money TOP: MoneyMSC: Definitional11. Marc puts prices on surfboards and skateboards at his sporting goods store. He is using money as a unit of account.ANS: T DIF: 1 REF: 29-1NAT: Analytic LOC: The role of money TOP: MoneyMSC: Definitional12. Sandra routinely uses currency

8、 to purchase her groceries. She is using money as a unit of account.ANS: F DIF: 1 REF: 29-1NAT: Analytic LOC: The role of money TOP: MoneyMSC: Definitional13. Bottles of very fine wine are less liquid than demand deposits.ANS: T DIF: 1 REF: 29-1NAT: Analytic LOC: The role of money TOP: LiquidityMSC:

9、 Interpretive14. U.S. dollars are an example of commodity money and hides used to make trades are an example of fiat money.ANS: F DIF: 1 REF: 29-1NAT: Analytic LOC: The role of money TOP: Commodity moneyMSC: Definitional15. When the Soviet Union began breaking up in the late 1980s, cigarettes began

10、replacing the ruble as the medium of exchange even though the ruble was legal tender. The cigarettes provide an example of fiat money.ANS: F DIF: 1 REF: 29-1NAT: Analytic LOC: The role of money TOP: Commodity moneyMSC: Interpretive16. In order for currency to be widely used as a medium of exchange,

11、it is sufficient for the government to designate it as legal tender.ANS: F DIF: 1 REF: 29-1NAT: Analytic LOC: The role of money TOP: CurrencyMSC: Definitional17. M1 includes savings deposits.ANS: F DIF: 1 REF: 29-1NAT: Analytic LOC: The role of money TOP: Money supplyMSC: Definitional18. M2 is both

12、larger and more liquid than M1.ANS: F DIF: 1 REF: 29-1NAT: Analytic LOC: The role of money TOP: Money supply | LiquidityMSC: Interpretive19. Credit cards are a medium of exchange.ANS: F DIF: 2 REF: 29-1NAT: Analytic LOC: The role of money TOP: Medium of exchangeMSC: Definitional20. The series of ban

13、k failures in 1907 occurred despite the creation of the Federal Reserve many years earlier.ANS: F DIF: 1 REF: 29-2NAT: Analytic LOC: The role of money TOP: Federal Reserve SystemMSC: Interpretive21. Federal Reserve governors are given long terms to insulate them from politics.ANS: T DIF: 2 REF: 29-2

14、NAT: Analytic LOC: Monetary and fiscal policy TOP: Federal Reserve SystemMSC: Interpretive22. The Federal Reserve is a privately operated commercial bank.ANS: F DIF: 1 REF: 29-2NAT: Analytic LOC: Monetary and fiscal policy TOP: Federal Reserve SystemMSC: Definitional23. The Federal Reserve was creat

15、ed in 1913 after a series of bank failures in 1907.ANS: T DIF: 1 REF: 29-2NAT: Analytic LOC: Monetary and fiscal policy TOP: Federal Reserve SystemMSC: Definitional24. Members of the Board of Governors are appointed by the president of the U.S. and confirmed by the U.S. Senate.ANS: T DIF: 1 REF: 29-

16、2NAT: Analytic LOC: Monetary and fiscal policy TOP: Federal Reserve SystemMSC: Definitional25. Monetary policy is determined by a committee whose voting members include all the presidents of the regional Federal Reserve Banks.ANS: F DIF: 1 REF: 29-2NAT: Analytic LOC: Monetary and fiscal policy TOP:

17、Federal Open Market Committee MSC: Definitional26. The Federal Reserve primarily uses open-market operations to change the money supply.ANS: T DIF: 1 REF: 29-3NAT: Analytic LOC: Monetary and fiscal policy TOP: Open-market operationsMSC: Definitional27. If the Fed buys bonds in the open market, the m

18、oney supply decreases.ANS: F DIF: 1 REF: 29-3NAT: Analytic LOC: Monetary and fiscal policy TOP: Open-market operationsMSC: Applicative28. Banks cannot influence the money supply if they hold all deposits in reserve.ANS: T DIF: 2 REF: 29-3NAT: Analytic LOC: Monetary and fiscal policy TOP: Banks | Mon

19、ey supplyMSC: Interpretive29. Banks still could contribute to changes in the money supply, even if they were required to hold all deposits in reserve.ANS: F DIF: 1 REF: 29-3NAT: Analytic LOC: Monetary and fiscal policy TOP: Fractional-reserve bankingMSC: Applicative30. If banks hold any amount of th

20、eir deposits in reserve, then they do not have the ability to influence the money supply.ANS: F DIF: 2 REF: 29-3NAT: Analytic LOC: The role of money TOP: Reserves | Money supplyMSC: Interpretive31. When the Federal Reserve decreases the discount rate, the quantity of reserves increases and the money

21、 supply increases.ANS: T DIF: 2 REF: 29-3NAT: Analytic LOC: Monetary and fiscal policy TOP: Discount rate | Reserves | Money supply MSC: Interpretive32. The money multiplier equals 1/(1 - R), where R represents the reserve ratio.ANS: F DIF: 1 REF: 29-3NAT: Analytic LOC: Monetary and fiscal policy TO

22、P: Money multiplierMSC: Definitional33. Assume that when $100 of new reserves enter the banking system, the money supply ultimately increases by $625. Assume also that no banks hold excess reserves and that the entire money supply consists of bank deposits. If, at a point in time, reserves for all b

23、anks amount to $500, then at that same point in time, loans for all banks amount to $2,625.ANS: T DIF: 3 REF: 29-3NAT: Analytic LOC: Monetary and fiscal policy TOP: Money multiplierMSC: Analytical34. Assume that when $100 of new reserves enter the banking system, the money supply ultimately increase

24、s by $800. Assume also that no banks hold excess reserves and that the entire money supply consists of bank deposits. If, at a point in time, reserves for all banks amount to $750, then at that same point in time, loans for all banks amount to $6,000.ANS: F DIF: 3 REF: 29-3NAT: Analytic LOC: Monetar

25、y and fiscal policy TOP: Money multiplierMSC: Analytical35. As banks create money, they create wealth.ANS: F DIF: 1 REF: 29-3NAT: Analytic LOC: The role of money TOP: Banks | MoneyMSC: Definitional36. The money supply of Hooba is $10,000 in a 100-percent-reserve banking system. If Hooba decreases th

26、e reserve requirement to 10 percent, the money supply could increase by no more than $9,000.ANS: F DIF: 2 REF: 29-3NAT: Analytic LOC: Monetary and fiscal policy TOP: Money multiplierMSC: Applicative37. If the Fed decreases reserve requirements, the money supply will increase.ANS: T DIF: 1 REF: 29-3N

27、AT: Analytic LOC: Monetary and fiscal policy TOP: Reserve requirementsMSC: Applicative38. An increase in reserve requirements increases reserves and decreases the money supply.ANS: F DIF: 2 REF: 29-3NAT: Analytic LOC: Monetary and fiscal policy TOP: Reserve requirementsMSC: Applicative39. Just after

28、 the terrorist attack on September 11, 2001, the Fed stood ready to lend financial institutions funds. When the Fed did this, it was acting in its role of lender of last resort.ANS: T DIF: 1 REF: 29-3NAT: Analytic LOC: Monetary and fiscal policy TOP: Lender of last resortMSC: Definitional40. Because

29、 of the multiple tools at its disposal, the Fed can control the money supply very precisely.ANS: F DIF: 2 REF: 29-3NAT: Analytic LOC: Monetary and fiscal policy TOP: Federal Reserve SystemMSC: Interpretive41. In the months of November and December, people in the United States hold a larger part of t

30、heir money in the form of currency because they intend to shop and travel for the holidays. As a result, other things the same the money supply increases.ANS: F DIF: 2 REF: 29-3NAT: Analytic LOC: Monetary and fiscal policy TOP: Currency | Money multiplierMSC: Applicative42. Other things the same, if

31、 banks decide to hold a smaller part of their deposits as excess reserves, the money supply will fall.ANS: F DIF: 2 REF: 29-3NAT: Analytic LOC: Monetary and fiscal policy TOP: ReservesMSC: Applicative43. Bank runs and the accompanying increase in the money multiplier caused the U.S. money supply to

32、rise by 28 percent from 1929 to 1933.ANS: F DIF: 2 REF: 29-3NAT: Analytic LOC: Monetary and fiscal policy TOP: Banks | Money multiplierMSC: DefinitionalSHORT ANSWER1. Economists argue that the move from barter to money increased trade and production. How is this possible?ANS: The use of money allows people to trade m