Personal Finance Quiz
Question 1 .0.5 out of 0.5 points Since M-2 excludes time deposits, M-2 is a less comprehensive measure of the money supply than M-1.
Selected Answer: Correct2. False
Answers: 1. True Correct2. False . Question 2 .0 out of 0.5 points When individuals withdraw cash from checking accounts, the money supply is unaffected.
Selected Answer: Incorrect1. False
Answers: 1. False Correct2. True . Question 3 .0.5 out of 0.5 points Only paper can perform the function of money.
Selected Answer: Correct2. False
Answers: 1. True Correct2. False . Question 4 .0.5 out of 0.5 points Stocks and bonds are an alternative to money as a store of value.
Selected Answer: Correct1. True
Answers:
Correct1. True 2. False . Question 5 .0.5 out of 0.5 points What serves for money in France may not be money in another country.
Selected Answer: Correct1. True
Answers: Correct1. True 2. False . Question 6 .0.5 out of 0.5 points M-1 includes savings accounts in commercial banks.
Selected Answer: Correct1. False
Answers: Correct1. False 2. True . Question 7 .0.5 out of 0.5 points M-1 includes coins, currency, and ____.
Selected Answer: Correct2. demand deposits
Answers: 1. savings accounts 2. certificates of deposit 3. time deposits Correct4. demand deposits . Question 8 .0.5 out of 0.5 points The power to create money is given by the Constitution to
Selected Answer: Correct1. Congress
Answers: Correct1. Congress 2. state governments 3. the Federal Reserve 4. commercial banks . Question 9 .0.5 out of 0.5 points Money serves as
Selected Answer: Correct1. a medium of exchange
Answers: 1. a precaution against inflation 2. a risk-free liability 3. a substitute for equity Correct4. a medium of exchange . Question 10 .0.5 out of 0.5 points An asset is liquid if it is easily
Selected Answer: Correct3. converted into cash without loss
Answers: 1. sold 2. marketed Correct3. converted into cash without loss 4. converted into cash . Question 11 .0.5 out of 0.5 points M-2 includes
1. demand deposits
2. savings accounts
3. small certificates of deposit
Selected Answer: Correct4. all three
Answers: 1. 2 and 3 2. 1 and 3 3. 1 and 2 Correct4. all three . Question 12 .0.5 out of 0.5 points Which of the following is NOT a determinant of interest rate? Selected Answer: Correct2. Profit margin of banks
Answers: 1. Liquidity Correct2. Profit margin of banks 3. Credit Risk 4. Expectation of Inflation
Selected Answer: Correct2. False
Answers: 1. True Correct2. False . Question 2 .0 out of 0.5 points When individuals withdraw cash from checking accounts, the money supply is unaffected.
Selected Answer: Incorrect1. False
Answers: 1. False Correct2. True . Question 3 .0.5 out of 0.5 points Only paper can perform the function of money.
Selected Answer: Correct2. False
Answers: 1. True Correct2. False . Question 4 .0.5 out of 0.5 points Stocks and bonds are an alternative to money as a store of value.
Selected Answer: Correct1. True
Answers:
Correct1. True 2. False . Question 5 .0.5 out of 0.5 points What serves for money in France may not be money in another country.
Selected Answer: Correct1. True
Answers: Correct1. True 2. False . Question 6 .0.5 out of 0.5 points M-1 includes savings accounts in commercial banks.
Selected Answer: Correct1. False
Answers: Correct1. False 2. True . Question 7 .0.5 out of 0.5 points M-1 includes coins, currency, and ____.
Selected Answer: Correct2. demand deposits
Answers: 1. savings accounts 2. certificates of deposit 3. time deposits Correct4. demand deposits . Question 8 .0.5 out of 0.5 points The power to create money is given by the Constitution to
Selected Answer: Correct1. Congress
Answers: Correct1. Congress 2. state governments 3. the Federal Reserve 4. commercial banks . Question 9 .0.5 out of 0.5 points Money serves as
Selected Answer: Correct1. a medium of exchange
Answers: 1. a precaution against inflation 2. a risk-free liability 3. a substitute for equity Correct4. a medium of exchange . Question 10 .0.5 out of 0.5 points An asset is liquid if it is easily
Selected Answer: Correct3. converted into cash without loss
Answers: 1. sold 2. marketed Correct3. converted into cash without loss 4. converted into cash . Question 11 .0.5 out of 0.5 points M-2 includes
1. demand deposits
2. savings accounts
3. small certificates of deposit
Selected Answer: Correct4. all three
Answers: 1. 2 and 3 2. 1 and 3 3. 1 and 2 Correct4. all three . Question 12 .0.5 out of 0.5 points Which of the following is NOT a determinant of interest rate? Selected Answer: Correct2. Profit margin of banks
Answers: 1. Liquidity Correct2. Profit margin of banks 3. Credit Risk 4. Expectation of Inflation