What are the modern forms of money?
Currency
Plastic money
Demand deposits
All the above
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
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
Monetary policy is controlled by
Central government
State government
Central bank
Private sector
The exchange of commodities for commodities is called
Barter
Indirect exchange
Asset transformation
Monetary exchange
Bank rate is raised during
Deflation
Inflation
Stable prices
Unemployment
A double coincidence of wants is
A condition easily satisfied in a direct exchange economy
A condition not easily satisfied in barter
A desirable property of money
A function of money
Which of the following is not true of inflation?
It reduces purchasing power of money.
It favours lenders and penalizes borrowers
It redistributes income in favour of variable income earners.
It decreases social welfare.
“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
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
