QUIZ

What is the defect of the barter system?

• lack of double coincidence of wants

• difficulty in the measurement of value

• difficulty of store value

• all of these

The institution that accepts deposits for lending purposes is known as ____________.

• commercial bank

• central bank

• government

• public

Which is the most liquid measure of the money supply?

• M4

• M3

• M2

• M1

Which of the following is the function of a central bank?

• issue of notes

• banker to the government and banks

• supply and control of money

• all of the above

Which of the following is NOT a function of money?

• medium of exchange

• a store of value

• a measure of worth

• a medium to supply and demand

Money can be used to transfer purchasing power from the present to the future. Which specific function of money is this called?

• store of value

• unit of account

• medium of exchange

• double coincidence of wants

Which of the following formulae is INCORRECT?

• M1 = currency + net demand deposits

• M2 = M1 + the convertible Money Supply

• M1= The spendable Money Supply

• M2 = M1 + currency + credit card

Which of the following below is NOT the characteristics of money?

• Portability

• Divisability

• Duplicate

• Durability

Which of the following is NOT under a non-deposit institution?

• Japanese Bank

• Insurance Company

• Unitrust

• Securities Investment Dealers

Below is the federal reserve structure, :

• The Board of Governors

• Reserve Banks

• Open Market Committe

• All of the above