The Money Market (1 of 2)- Macro Topic 4.5
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Business, Life Skills
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11th Grade - University
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Hard
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5 questions
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1.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Which of the following is included in the narrowest definition of money, known as M1?
Bonds
Stocks
Traveler's checks
Real estate
2.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Why are assets like cars and houses not considered money?
They are not owned by banks
They have low liquidity
They are not used for transactions
They are not valuable
3.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What happens to the demand for money when the interest rate is high?
It increases
It remains unchanged
It decreases
It becomes unpredictable
4.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Which factor can cause a shift in the demand curve for money?
A change in the central bank's policy
A change in the price level
A change in the currency design
A change in the number of banks
5.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What is the purpose of contractionary monetary policy?
To increase inflation
To decrease inflation
To increase employment
To decrease interest rates
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