米什金貨幣金融學(xué)英文版習(xí)題答案chapter3英文習(xí)題

米什金貨幣金融學(xué)英文版習(xí)題答案chapter3英文習(xí)題EconomicsofMoney,Banking,andFinancialMarkets,11e,GlobalEdition(Mishkin)Chapter3WhatIsMoney?3.1MeaningofMoney1)Toaneconomist,________isanythingthatisgenerallyacceptedinpaymentforgoodsandservicesorintherepaymentofdebt.A)wealthB)incomeC)moneyD)creditAnswer:CAACSB:ApplicationofKnowledge2)MoneyisA)anythingthatisgenerallyacceptedinpaymentforgoodsandservicesorintherepaymentofdebt.B)aflowofearningsperunitoftime.C)thetotalcollectionofpiecesofpropertythatareastoreofvalue.D)alwaysbasedonapreciousmetallikegoldorsilver.Answer:AAACSB:ApplicationofKnowledge3)CurrencyincludesA)papermoneyandcoins.B)papermoney,coins,andchecks.C)papermoneyandchecks.D)papermoney,coins,checks,andsavingsdeposits.Answer:AAACSB:AnalyticalThinking4)Eveneconomistshavenosingle,precisedefinitionofmoneybecauseA)moneysupplystatisticsareastatesecret.B)theFederalReservedoesnotemployorreportdifferentmeasuresofthemoneysupply.C)the"moneyness"orliquidityofanassetisamatterofdegree.D)economistsfinddisagreementinterestingandrefusetoagreeforideologicalreasons.Answer:CAACSB:ReflectiveThinking5)Thetotalcollectionofpiecesofpropertythatservetostorevalueisaperson'sA)wealth.B)income.C)money.D)credit.Answer:AAACSB:ApplicationofKnowledge6)Aperson'shouseispartofherA)money.B)income.C)liabilities.D)wealth.Answer:DAACSB:AnalyticalThinking7)________isusedtomakepurchaseswhile________isthetotalcollectionofpiecesofpropertythatservetostorevalue.A)Money;incomeB)Wealth;incomeC)Income;moneyD)Money;wealthAnswer:DAACSB:ReflectiveThinking8)________isaflowofearningsperunitoftime.A)IncomeB)MoneyC)WealthD)CurrencyAnswer:AAACSB:ApplicationofKnowledge9)Anindividual'sannualsalaryisherA)money.B)income.C)wealth.D)liabilities.Answer:BAACSB:AnalyticalThinking10)Whenwesaythatmoneyisastockvariable,wemeanthatA)thequantityofmoneyismeasuredatagivenpointintime.B)wemustattachatimeperiodtothemeasure.C)itissoldintheequitymarket.D)moneyneverlosespurchasingpower.Answer:AAACSB:ReflectiveThinking11)ThedifferencebetweenmoneyandincomeisthatA)moneyisaflowandincomeisastock.B)moneyisastockandincomeisaflow.C)thereisnodifference—moneyandincomearebothstocks.D)thereisnodifference—moneyandincomearebothflows.Answer:BAACSB:ReflectiveThinking12)WhichofthefollowingisaTRUEstatement?A)Moneyandincomeareflowvariables.B)Moneyisaflowvariable.C)Incomeisaflowvariable.D)Moneyandincomearestockvariables.Answer:CAACSB:ReflectiveThinking13)Whichofthefollowingstatementsusestheeconomists'definitionofmoney?A)Iplantoearnalotofmoneyoverthesummer.B)Betsyisrich—shehasalotofmoney.C)IhopethatIhaveenoughmoneytobuymylunchtoday.D)ThejobwithNewCompanygavemetheopportunitytoearnmoremoney.Answer:CAACSB:AnalyticalThinking3.2FunctionsofMoney1)Ofmoney'sthreefunctions,theonethatdistinguishesmoneyfromotherassetsisitsfunctionasaA)storeofvalue.B)unitofaccount.C)standardofdeferredpayment.D)mediumofexchange.Answer:DAACSB:ReflectiveThinking2)Ifpeanutsserveasamediumofexchange,aunitofaccount,andastoreofvalue,thenpeanutsareA)bankdeposits.B)reserves.C)money.D)loanablefunds.Answer:CAACSB:ReflectiveThinking3)________arethetimeandresourcesspenttryingtoexchangegoodsandservices.A)BargainingcostsB)TransactioncostsC)ContractingcostsD)BartercostsAnswer:BAACSB:ApplicationofKnowledge4)Comparedtoaneconomythatusesamediumofexchange,inabartereconomyA)transactioncostsarehigher.B)transactioncostsarelower.C)liquiditycostsarehigher.D)liquiditycostsarelower.Answer:AAACSB:ReflectiveThinking5)Whencomparedtoexchangesystemsthatrelyonmoney,disadvantagesofthebartersystemincludeA)therequirementofadoublecoincidenceofwants.B)loweringthecostofexchanginggoodsovertime.C)loweringthecostofexchangetothosewhowouldspecialize.D)encouragingspecializationandthedivisionoflabor.Answer:AAACSB:ReflectiveThinking6)TheconversionofabartereconomytoonethatusesmoneyA)increasesefficiencybyreducingtheneedtoexchangegoodsandservices.B)increasesefficiencybyreducingtheneedtospecialize.C)increasesefficiencybyreducingtransactionscosts.D)doesnotincreaseeconomicefficiency.Answer:CAACSB:ReflectiveThinking7)Whichofthefollowingstatementsbestexplainshowtheuseofmoneyinaneconomyincreaseseconomicefficiency?A)Moneyincreaseseconomicefficiencybecauseitiscostlesstoproduce.B)Moneyincreaseseconomicefficiencybecauseitdiscouragesspecialization.C)Moneyincreaseseconomicefficiencybecauseitdecreasestransactionscosts.D)Moneycannothaveaneffectoneconomicefficiency.Answer:CAACSB:ReflectiveThinking8)Wheneconomistssaythatmoneypromotes________,theymeanthatmoneyencouragesspecializationandthedivisionoflabor.A)bargainingB)contractingC)efficiencyD)greedAnswer:CAACSB:ReflectiveThinking9)Money________transactioncosts,allowingpeopletospecializeinwhattheydobest.A)reducesB)increasesC)enhancesD)eliminatesAnswer:AAACSB:ApplicationofKnowledge10)ForacommoditytofunctioneffectivelyasmoneyitmustbeA)easilystandardized,makingiteasytoascertainitsvalue.B)difficulttomakechange.C)deterioratequicklysothatitssupplydoesnotbecometoolarge.D)hardtocarryaround.Answer:AAACSB:ReflectiveThinking11)AllofthefollowingarenecessarycriteriaforacommoditytofunctionasmoneyEXCEPTA)itmustdeterioratequickly.B)itmustbedivisible.C)itmustbeeasytocarry.D)itmustbewidelyaccepted.Answer:AAACSB:AnalyticalThinking12)Whateverasocietyusesasmoney,thedistinguishingcharacteristicisthatitmustA)becompletelyinflationproof.B)begenerallyacceptableaspaymentforgoodsandservicesorintherepaymentofdebt.C)containgold.D)beproducedbythegovernment.Answer:BAACSB:ReflectiveThinking13)Allbutthemostprimitivesocietiesusemoneyasamediumofexchange,implyingthatA)theuseofmoneyiseconomicallyefficient.B)barterexchangeiseconomicallyefficient.C)barterexchangecannotworkoutsidethefamily.D)inflationisnotaconcern.Answer:AAACSB:ReflectiveThinking14)Kevinpurchasingconcertticketswithhisdebitcardisanexampleofthe________functionofmoney.A)mediumofexchangeB)unitofaccountC)storeofvalueD)specializationAnswer:AAACSB:AnalyticalThinking15)Whenmoneypricesareusedtofacilitatecomparisonsofvalue,moneyissaidtofunctionasaA)unitofaccount.B)mediumofexchange.C)storeofvalue.D)payments-systemruler.Answer:AAACSB:AnalyticalThinking16)WhentherearemanygoodsisthatinabartersystemA)transactionscostsareminimized.B)thereexistsamultiplenumberofpricesforeachgood.C)thereisonlyonestoreofvalue.D)exchangeofservicesisimpossible.Answer:BAACSB:ReflectiveThinking17)InabartereconomythenumberofpricesinaneconomywithNgoodsisA)[N(N-1)]/2.B)N(N/2).C)2N.D)N(N/2)-1.Answer:AAACSB:AnalyticalThinking18)Iftherearefivegoodsinabartereconomy,oneneedstoknowtenpricesinordertoexchangeonegoodforanother.If,however,therearetengoodsinabartereconomy,thenoneneedstoknow________pricesinordertoexchangeonegoodforanother.A)20B)25C)30D)45Answer:DAACSB:AnalyticalThinking19)Iftherearefourgoodsinabartereconomy,thenoneneedstoknow________pricesinordertoexchangeonegoodforanother.A)8B)6C)5D)4Answer:BAACSB:AnalyticalThinking20)Becauseitisaunitofaccount,moneyA)increasestransactioncosts.B)reducesthenumberofpricesthatneedtobecalculated.C)doesnotearninterest.D)discouragesspecialization.Answer:BAACSB:ReflectiveThinking21)Dennisnoticesthatjacketsareonsalefor$99.InthiscasemoneyisfunctioningasaA)mediumofexchange.B)unitofaccount.C)storeofvalue.D)payments-systemruler.Answer:BAACSB:AnalyticalThinking22)Asastoreofvalue,moneyA)doesnotearninterest.B)cannotbeadurableasset.C)mustbecurrency.D)isawayofsavingforfuturepurchases.Answer:DAACSB:AnalyticalThinking23)Patrickplaceshispocketchangeintohissavingsbankonhisdeskeachevening.Byhisactions,PatrickindicatesthathebelievesthatmoneyisaA)mediumofexchange.B)unitofaccount.C)storeofvalue.D)unitofspecialization.Answer:CAACSB:AnalyticalThinking24)________istherelativeeaseandspeedwithwhichanassetcanbeconvertedintoamediumofexchange.A)EfficiencyB)LiquidityC)DeflationD)SpecializationAnswer:BAACSB:ApplicationofKnowledge25)IncreasingtransactionscostsofsellinganassetmaketheassetA)morevaluable.B)moreliquid.C)lessliquid.D)moremoneylike.Answer:CAACSB:ReflectiveThinking26)Sinceitdoesnothavetobeconvertedintoanythingelsetomakepurchases,________isthemostliquidasset.A)moneyB)stockC)artworkD)goldAnswer:AAACSB:ReflectiveThinking27)Ofthefollowingassets,theleastliquidisA)stocks.B)traveler'schecks.C)checkingdeposits.D)ahouse.Answer:DAACSB:AnalyticalThinking28)Rankingassetsfrommostliquidtoleastliquid,thecorrectorderisA)savingsbonds;house;currency.B)currency;savingsbonds;house.C)currency;house;savingsbonds.D)house;savingsbonds;currency.Answer:BAACSB:AnalyticalThinking29)Peopleholdmoneyevenduringinflationaryepisodeswhenotherassetsprovetobebetterstoresofvalue.ThiscanbeexplainedbythefactthatmoneyisA)extremelyliquid.B)auniquegoodforwhichtherearenosubstitutes.C)theonlythingacceptedineconomicexchange.D)backedbygold.Answer:AAACSB:ReflectiveThinking30)Ifthepriceleveldoubles,thevalueofmoneyA)doubles.B)morethandoubles,duetoscaleeconomies.C)risesbutdoesnotdouble,duetodiminishingreturns.D)fallsby50percent.Answer:DAACSB:AnalyticalThinking31)AfallinthelevelofpricesA)doesnotaffectthevalueofmoney.B)hasanuncertaineffectonthevalueofmoney.C)increasesthevalueofmoney.D)reducesthevalueofmoney.Answer:CAACSB:AnalyticalThinking32)AhyperinflationisA)aperiodofextremeinflationgenerallygreaterthan50%permonth.B)aperiodofanxietycausedbyrisingprices.C)anincreaseinoutputcausedbyhigherprices.D)impossibletodaybecauseoftighterregulations.Answer:AAACSB:AnalyticalThinking33)DuringhyperinflationsA)thevalueofmoneyrisesrapidly.B)moneynolongerfunctionsasagoodstoreofvalueandpeoplemayresorttobartertransactionsonamuchlargerscale.C)middle-classsaversbenefitaspricesrise.D)money'svalueremainsfixedtothepricelevel;thatis,ifpricesdoublesodoesthevalueofmoney.Answer:BAACSB:ReflectiveThinking34)BecauseinflationinGermanyafterWorldWarIsometimesexceeded1,000%permonth,onecanconcludethattheGermaneconomysufferedfromA)deflation.B)disinflation.C)hyperinflation.D)superdeflation.Answer:CAACSB:ApplicationofKnowledge35)IfmerchantsinthecountryZedchoosetoclosetheirdoors,preferringtobestuckwithrottingmerchandiseratherthanworthlesscurrency,thenonecanconcludethatZedisexperiencingaA)superdeflation.B)hyperdeflation.C)disinflation.D)hyperinflation.Answer:DAACSB:ReflectiveThinking36)Explainhowcigarettescouldbecalled"money"inprisoner-of-warcampsofWorldWarII.Answer:Thecigarettesperformedthethreefunctionsofmoney.Theyservedasthemediumofexchangebecauseindividualsdidexchangeitemsforcigarettes.Theyservedasaunitofaccountbecausepriceswerequotedintermsofthenumberofcigarettesrequiredfortheexchange.Theyservedasastoreofvaluebecauseanindividualwouldbewillingtosavetheircigaretteseveniftheydidnotsmokebecausetheybelievedthattheycouldexchangethecigarettesforsomethingthattheydidwantatsometimeinthefuture.AACSB:ReflectiveThinking3.3EvolutionofthePaymentsSystem1)ThepaymentssystemisA)themethodofconductingtransactionsintheeconomy.B)usedbyunionofficialstosetsalarycaps.C)anillegalmethodofrewardingcontracts.D)usedbyyouremployertodeterminesalaryincreases.Answer:AAACSB:ReflectiveThinking2)Asthepaymentssystemevolvesfrombartertoamonetarysystem,A)commoditymoneyislikelytoprecedetheuseofpapercurrency.B)transactioncostsincrease.C)thenumberofpricesthatneedtobecalculatedincreaseratherdramatically.D)specializationdecreases.Answer:AAACSB:ReflectiveThinking3)________moneycouldbeusedforsomeotherpurposeotherthanasamediumofexchange,forexample,goldcoinscouldbemelteddownandturnedintogoldjewelry.A)CommodityB)FiatC)PaperD)ElectronicAnswer:AAACSB:AnalyticalThinking4)Adisadvantageof________madefrompreciousmetalsisthatitisveryheavyandhardtotransportfromoneplacetoanother.A)commoditymoneyB)fiatmoneyC)electronicmoneyD)papermoneyAnswer:AAACSB:ReflectiveThinking5)Papercurrencythathasbeendeclaredlegaltenderbutisnotconvertibleintocoinsorpreciousmetalsiscalled________money.A)commodityB)fiatC)electronicD)funnyAnswer:BAACSB:AnalyticalThinking6)Whenpapercurrencyisdecreedbygovernmentsaslegaltender,legallyitmustbeA)papercurrencybackedbygold.B)apreciousmetalsuchasgoldorsilver.C)acceptedaspaymentfordebts.D)convertibleintoanelectronicpayment.Answer:CAACSB:ReflectiveThinking7)Theevolutionofthepaymentssystemfrombartertopreciousmetals,thentofiatmoney,thentocheckscanbestbeunderstoodasaconsequenceofthefactthatA)paperismorecostlytoproducethanpreciousmetals.B)preciousmetalswerenotgenerallyacceptable.C)preciousmetalsweredifficulttocarryandtransport.D)papermoneyislessacceptedthanchecks.Answer:CAACSB:ReflectiveThinking8)Comparedtochecks,papercurrencyandcoinshavethemajordrawbacksthattheyA)areeasilystolen.B)arehardtocounterfeit.C)arenotthemostliquidassets.D)mustbebackedbygold.Answer:AAACSB:ReflectiveThinking9)Although________currencyislighterthancoinsmadeofmetals,adisadvantagearisingfrommoderntechnologyistheeaseof________.A)paper;transportB)commodity;counterfeitingC)fiat;transportD)paper;counterfeitingAnswer:DAACSB:InformationTechnology10)Introductionofchecksintothepaymentssystemreducedthecostsofexchanginggoodsandservices.AnotheradvantageofchecksisthatA)theyprovideconvenientreceiptsforpurchases.B)theycanneverbestolen.C)theyaremorewidelyacceptedthancurrency.D)thefundsfromadepositedcheckareavailableforuseimmediately.Answer:AAACSB:ReflectiveThinking11)Theevolutionofthepaymentssystemfrombartertopreciousmetals,thentofiatmoney,thentocheckscanbestbeunderstoodasaconsequenceofA)governmentregulationsdesignedtoimprovetheefficiencyofthepaymentssystem.B)governmentregulationsdesignedtopromotethesafetyofthepaymentssystem.C)innovationsthatreducedthecostsofexchanginggoodsandservices.D)competitionamongfirmstomakeiteasierforcustomerstopurchasetheirproducts.Answer:CAACSB:ReflectiveThinking12)Comparedtoanelectronicpaymentssystem,apaymentssystembasedoncheckshasthemajordrawbackthatA)checksarelesscostlytoprocess.B)checkstakelongertoprocess,meaningthatitmaytakeseveraldaysbeforethedepositorcangethercash.C)fraudmaybemoredifficulttocommitwhenpaperreceiptsareeliminated.D)legalliabilityismoreclearlydefined.Answer:BAACSB:ReflectiveThinking13)Whichofthefollowingsequencesaccuratelydescribestheevolutionofthepaymentssystem?A)barter,coinsmadeofpreciousmetals,papercurrency,checks,electronicfundstransfersB)barter,coinsmadeofpreciousmetals,checks,papercurrency,electronicfundstransfersC)barter,checks,papercurrency,coinsmadeofpreciousmetals,electronicfundstransfersD)barter,checks,papercurrency,electronicfundstransfersAnswer:AAACSB:AnalyticalThinking14)AnimportantcharacteristicofthemodernpaymentssystemhasbeentherapidlyincreasinguseofA)checksanddecreasinguseofcurrency.B)electronicfundtransfers.C)commoditymonies.D)fiatmoney.Answer:BAACSB:InformationTechnology15)WhichofthefollowingisNOTaformofe-money?A)adebitcardB)acreditcardC)astored-valuecardD)asmartcardAnswer:BAACSB:InformationTechnology16)AsmartcardistheequivalentofA)cash.B)savingsbonds.C)savingsdeposits.D)certificatesofdeposit.Answer:AAACSB:InformationTechnology17)AnelectronicpaymentssystemhasnotcompletelyreplacedthepaperpaymentssystembecauseofallofthefollowingreasonsEXCEPTA)expensiveequipmentisnecessarytosetupthesystem.B)securityconcerns.C)privacyconcerns.D)transportationcosts.Answer:DAACSB:InformationTechnology18)InexplainingtheevolutionofmoneyA)governmentregulationisthemostimportantfactor.B)commoditymoney,becauseitisvaluedmorehighly,tendstodriveoutpapermoney.C)newformsofmoneyevolvetolowertransactioncosts.D)papermoneyisalwaysbackedbygoldandthereforemoredesirablethanchecks.Answer:CAACSB:ReflectiveThinking19)AfeatureofBitcoin,anewtypeofelectronicmoney,thatmakeitattractiveasamediumofexchangeisA)anonymoustransactions.B)volatilityofvalue.C)heavyregulationsbythecentralbank.D)wideacceptancebybusinesses.Answer:AAACSB:ApplicationofKnowledge20)Whatfactorshavesloweddownthemovementtoasystemwhereallpaymentsaremadeelectronically?Answer:Theequipmentnecessarytosetupthesystemisexpensive,securityoftheinformation,andprivacyconcernsareissuesthatneedtobeaddressedbeforeanelectronicpaymentssystemwillbewidelyaccepted.AACSB:ReflectiveThinking3.4MeasuringMoney1)RecentfinancialinnovationmakestheFederalReserve'sjobofconductingmonetarypolicyA)easier,sincetheFednowknowswhattoconsidermoney.B)moredifficult,sincetheFednowknowswhattoconsidermoney.C)easier,sincetheFednolongerknowswhattoconsidermoney.D)moredifficult,sincetheFednolongerknowswhattoconsidermoney.Answer:DAACSB:ReflectiveThinking2)Definingmoneybecomes________difficultasthepaceoffinancialinnovation________.A)less;quickensB)more;quickensC)more;slowsD)more;stopsAnswer:BAACSB:InformationTechnology3)MonetaryaggregatesareA)measuresofthemoneysupplyreportedbytheFederalReserve.B)measuresofthewealthofindividuals.C)neverredefinedsince"money"neverchanges.D)reportedbytheTreasuryDepartmentannually.Answer:AAACSB:AnalyticalThinking4)________isthenarrowestmonetaryaggregatethattheFedreports.A)M0B)M1C)M2D)M3Answer:BAACSB:AnalyticalThinking5)ThecurrencycomponentincludespapermoneyandcoinsheldinA)bankvaults.B)ATMs.C)thehandsofthenonbankpublic.D)thecentralbank.Answer:CAACSB:AnalyticalThinking6)TheothercheckabledepositscomponentoftheM1measurereportedbytheFederalReserveincludesA)negotiabletimedeposits.B)moneymarketmutualfundshares.C)automatictransferfromsavingsaccounts.D)moneymarketdepositaccounts.Answer:CAACSB:AnalyticalThinking7)ThecomponentsoftheU.S.M1moneysupplyaredemandandcheckabledepositsplusA)currency.B)currencyplussavingsdeposits.C)currencyplustravelerschecks.D)currencyplustravelerschecksplusmoneymarketdeposits.Answer:CAACSB:AnalyticalThinking8)TheM1measureofmoneyincludesA)smalldenominationtimedeposits.B)traveler'schecks.C)moneymarketdepositaccounts.D)moneymarketmutualfundshares.Answer:BAACSB:AnalyticalThinking9)WhichofthefollowingisNOTincludedinthemeasureofM1?A)NOWaccountsB)demanddepositsC)currencyD)savingsdepositsAnswer:DAACSB:AnalyticalThinking10)WhichofthefollowingisNOTincludedintheM1measureofmoneybutisincludedintheM2measureofmoney?A)currencyB)traveler'schecksC)demanddepositsD)small-denominationtimedepositsAnswer:DAACSB:AnalyticalThinking11)WhichofthefollowingisincludedinbothM1andM2?A)currencyB)savingsdepositsC)small-denominationtimedepositsD)moneymarketdepositaccountsAnswer:AAACSB:AnalyticalThinking12)WhichofthefollowingisNOTincludedinthemonetaryaggregateM2?A)currencyB)savingsbondsC)traveler'schecksD)checkingdepositsAnswer:BAACSB:AnalyticalThinking13)WhichofthefollowingisincludedinM2butNOTinM1?A)NOWaccountsB)demanddepositsC)currencyD)moneymarketmutualfundshares(retail)Answer:DAACSB:AnalyticalThinking14)Ofthefollowing,thelargestisA)moneymarketdepositaccounts.B)demanddeposits.C)M1.D)M2.Answer:DAACSB:AnalyticalThinking15)IfanindividualredeemsaU.S.savingsbondforcurrencyA)M1staysthesameandM2decreases.B)M1increasesandM2increases.C)M1increasesandM2staysthesame.D)M1staysthesameandM2staysthesame.Answer:BAACSB:AnalyticalThinking16)Ifanindividualmovesmoneyfromasmall-denominationtimedeposittoademanddepositaccountA)M1increasesandM2staysthesame.B)M1staysthesameandM2increases.C)M1staysthesameandM2staysthesame.D)M1increasesandM2decreases.Answer:AAACSB:AnalyticalThinking17)IfanindividualmovesmoneyfromademanddepositaccounttoamoneymarketdepositaccountA)M1decreasesandM2staysthesame.B)M1staysthesameandM2increases.C)M1staysthesameandM2staysthesame.D)M1increasesandM2decreases.Answer:AAACSB:Analy