We have sent an email with your new password.


Econ Test 3-12

57 Questions  I  By [email protected]
Social Science Quizzes & Trivia

  
Changes are done, please start the quiz.


Question Excerpt

Removing question excerpt is a premium feature

Upgrade and get a lot more done!
1.     16.   The requirement of a "double coincidence of wants" is the chief __________ of the __________ exchange system.
A.
B.
C.
D.
2.     23.   In a barter economy, people are _________ to specialize in the production of one good or service, compared to in a money economy.
A.
B.
C.
D.
3.     50.   The unit of account function of money refers to the
A.
B.
C.
D.
4.     93.   A bank has $50,000 in excess reserves and the required reserve ratio is 10 percent. This means the bank could have __________ in checkable deposit liabilities and __________ in (total) reserves.
A.
B.
C.
D.
5.     30.   According to the text, in the book version of The Wonderful Wizard of Oz, Dorothy's slippers are
A.
B.
C.
D.
6.     46.   A bank has $10,000 in excess reserves and the required reserve ratio is 20 percent. This means the bank could have __________ in checkable deposit liabilities and __________ in reserves.
A.
B.
C.
D.
7.     24.   M2 is comprised of
A.
B.
C.
D.
8.     18.   M1 is comprised of currency held outside banks + traveler’s checks + __________.
A.
B.
C.
D.
E.
9.     19.   Historically, which of the following goods have evolved into money?
A.
B.
C.
D.
E.
10.  Which of the following is a correct listing of money's functions?
A.
B.
C.
D.
E.
11.     35.   If checkable deposits in Bank A total $100 million and the required reserve ratio is 9 percent, then required reserves at Bank A equal
A.
B.
C.
D.
12.     45.   When a bank makes a loan to one of its customers, to the bank the loan is classified as
A.
B.
C.
D.
13.  Barter is
A.
B.
C.
D.
14.     78.   Bank deposits at the Federal Reserve = $40 billion, vault cash = $2 billion, required reserve ratio = 0.10, and total checkable deposits = $400 billion. It follows that required reserves equal __________ billion, (total) reserves equal __________ billion and excess reserves equal __________ billion.
A.
B.
C.
D.
E.
15.     29.   Accordidng to the text, The Wonderful Wizard of Oz is alleged to be a story about
A.
B.
C.
D.
16.     42.   Bank A has deposits of $200,000 and reserves of $24,000. If the required reserve ratio is 11 percent, the bank has excess reserves of
A.
B.
C.
D.
17.     95.   If reserves equal $59 million and vault cash equals $29 million, it follows that
A.
B.
C.
D.
E.
18.     13.   In the Yap civilization of the South Pacific prior to 1920, large, heavy stones in the shape of a wheel were used as money. Which function of money was probably least served by this form of money?
A.
B.
C.
D.
19.     25.   According to the text, L. Frank Baum, the author of The Wonderful Wizard of Oz, blamed ____________________ for the economic depression of 1893 and the related hardships faced by farmers and workers.
A.
B.
C.
D.
20.     38.   Tenth National Bank holds $235,000,000 in checkable deposits and $25,500,000 in reserves. With a required reserve ratio of 10 percent, how much in excess reserves is Tenth National holding?
A.
B.
C.
D.
21.     10.   If a person uses money to buy a pair of shoes, money is functioning as
A.
B.
C.
D.
22.     31.   In the history of banking, warehouse receipts refer to receipts
A.
B.
C.
D.
23.     20.   Which of the following statements is true?
A.
B.
C.
D.
E.
24.     76.   Consider the following data: currency (held outside banks) = $354 billion, checkable deposits = $250 billion, traveler's checks = $4 billion, small-denomination time deposits = $200 billion, savings deposits = $100 billion, retail money market mutual funds = $160 billion. M1 equals __________ billion and M2 equals __________ billion.
A.
B.
C.
D.
E.
25.     33.   Total bank reserves equal
A.
B.
C.
D.
26.  If peanuts were widely accepted for purposes of exchange, then
A.
B.
C.
D.
E.
27.     43.   A bank has $10 million in checkable deposits and $2.5 million in reserves. If the required reserve ratio is 10 percent, then the bank has
A.
B.
C.
D.
E.
28.     14.   Money evolved out of the self-interested actions of
A.
B.
C.
D.
29.  Transaction costs are best defined as the
A.
B.
C.
D.
30.     39.   The amount of required reserves a bank holds depends on the
A.
B.
C.
D.
31.     47.   Which of the following is true?
A.
B.
C.
D.
E.
32.     26.   A savings account functions as
A.
B.
C.
D.
33.  Money's basic advantage as compared to barter is that
A.
B.
C.
D.
34.     41.   Bank A has deposits of $8,000 and total reserves of $2,000. If the required reserve ratio is 0.15, the bank has required reserves of
A.
B.
C.
D.
35.     40.   Reserves held beyond the required amount are called __________ reserves.
A.
B.
C.
D.
36.   Which of the following illustrates a barter transaction?
A.
B.
C.
D.
E.
37.     22.   A savings deposit is a type of
A.
B.
C.
D.
E.
38.     12.   According to the text, the good that emerged as money in World War II POW camps was
A.
B.
C.
D.
39.     15.   Compared to barter, money __________ transaction costs, making transactions __________ time-consuming.
A.
B.
C.
D.
40.     79.   Banks in the United States operate under a fractional reserve system, which means they must maintain only a fraction of their deposits in the form of
A.
B.
C.
D.
41.     99.   The potential buyer of a house has less information about the house than the seller of the house. This is a case of
A.
B.
C.
D.
E.
42.     34.   Required reserves are the amount of
A.
B.
C.
D.
43.  In which situation are transaction costs most likely to be the lowest?
A.
B.
C.
D.
44.     51.   The store of value function of money refers to the ability of money to
A.
B.
C.
D.
45.     44.   Bank A holds $1 million in required reserves and the required reserve ratio is 9 percent. It follows that Bank A holds checkable deposit liabilities that total approximately
A.
B.
C.
D.
46.     56.   Money is defined by economists as
A.
B.
C.
D.
E.
47.  A unit of account is
A.
B.
C.
D.
E.
48.     37.   Ninth National Bank holds $150,000,000 in checkable deposits and $12,000,000 in total reserves. With a required reserve ratio of 8 percent, how much in excess reserves is Ninth National holding?
A.
B.
C.
D.
E.
49.     21.   A "money market deposit account" is a(n)
A.
B.
C.
D.
E.
50.     28.   Because money __________________, people are _________________ likely to specialize their work in a money economy.
A.
B.
C.
D.
51.     17.   Your neighbor has knowledge of economics and you would like her to share it with you. You own a car, a CD player and a new pair of running shoes. You wish to make a trade, but the neighbor does not want what you have. The problem can be stated as follows: You are not satisfying the
A.
B.
C.
D.
52.     96.   If excess reserves are $10 million, (total) reserves are $14 million, and the required reserve ratio is 10%, then required reserves equal ________________ and checkable deposits equal ____________________.
A.
B.
C.
D.
53.  To an economist, money is a synonym for which of the following?
A.
B.
C.
D.
E.
54.     59.   The M2 money supply
A.
B.
C.
D.
E.
55.     27.   The first bankers were
A.
B.
C.
D.
E.
56.     32.   Fractional reserve banking is a term used to describe a banking system whereby
A.
B.
C.
D.
E.
57.     52.   M2 includes M1 plus all of the following except
A.
B.
C.
D.
Back to top

Removing ad is a premium feature

Upgrade and get a lot more done!
Take Another Quiz