Ünite Sınavı Soruları

Which of the following is/are true for demand for real money balances?

1. It increases with the rise in income
2. It decreases with the rise in the rate of interest
3. It increases with the rise of real money supply

All of the following are actors in determining the money supply EXCEPT

When does the LM curve shift to the left?

According to Keynes, why do people hold money?

1. to be able to realize their transactions
2. to be able to cover unforeseen expenses
3. not to lose money and to secure profit

The demand for real money balances depends on the level of ............ and ............

Which of the following completes the sentence above?

Which of the following is likely to occur if people sell their bonds and liquidate them into money?

Which of the following define money supply?

1. total amount of money available in an economy at a particular point in time
2. currency, paper money, and coins that nonbank public holds
3. demand deposits in commercial banks
4. liquid assets in an economy earning interest

1. Transactions motive
2. Precautionary motive
3. Speculative motive

According to Keynes which of the above is/are motive(s) for people to hold money?

Which of the following has/have an effect on the slope of the LM curve?

The buying and selling of bonds on the bond market are known as “.................”

Which of the following completes the sentence above?

Which of the following options shows the money multiplier?

1. Face value
2. Cost
3. Coupon payments
4. Maturity
5. Transaction cost

On which of the above depends the value of a bond?

If foreign currency is used not only for transactions purposes, but also speculative and precautionary purposes, and replaces the domestic money, then, it is called ..........

Which of the following completes the sentence above?

Which of the following is a consequence of increase in income?

As a result of an decrease in income, one would expect all, but —---.

Which of the following completes the sentence above?

The slope of the LM curve is determined by which of the following?

How does central bank decrease money supply?

Which of the following is/are true of LM curve?

1. The LM curve shifts in response to changes in money supply and money demand.
2. The slope of the LM curve is determined by the income elasticity and the interest rate elasticity of demand for money.
3. LM curve is a locus of income and interest rate combinations that keep the money market in equilibrium, where money demand is equal to the money supply.

Which of the following is true about bonds?

1. the value of a bond is dependent solely on the length of time the payment will be done
2. the price of a bond is determined by the equilibrium in the bond market
3. the price of bonds and interest rates are inversely related

The following information is given for an economy.

Assume that the money demand function is given as follows: Md = $Y(0.5-i)

Nominal Income: $Y = 2000 Money Supply: Ms = 200

Interest rate: 10%.

According to the information above, which of the following gives the demand for money?