Monetary policy is controlled by
Central government
State government
Central bank
Private sector
For an asset to act as money, the asset must
Be legally accepted as a medium of exchange
Be commonly accepted by the public as a medium of exchange
Have a physical existence
Be made out of or fully backed by a precious metal
Legal tender is the circulating medium under
The gold standard
Bimetallism
Commodity standards
Fiat-money standards
A situation marked by rising prices and stagnation in demand is known as
Cost-push inflation
Demand – pull inflation
Stagflation
Wage – push inflation
Which of the following is not a function of money?
Unit of account
Medium of exchange
Store of value
Intermediation
Under the pure gold standard
Circulating notes are fully backed by gold.
The authorities can easily manipulate the money supply
Price stability is difficult to achieve
The power of monetary policy is unlimited
Barter works best
In the absence of a double coincidence of wants
When many different product are available in the economy when money is relatively available to establish relative prices
When money is relatively available to establish relative prices
When each trader has what the other wants and wants what the other has
“Bad money drives good money out of circulation.” This is a statement of
Monetary policy rule.
Okun’s law.
Gresham’s law.
The paradox of thrift
The two broad monetary standards found in the history of money are
Gold standard and silver standard
Bimetallism and trimetallism
Monometallism and bimetallism
Commodity standard and paper-money standard
A coincidence of wants happens exists when
Two people want the same thing at the same time
One person wants to but two different things at the same time
The individual who has what I want, also wants what I have
All the above
