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Money and Banking Quiz for Students

This document contains a 10 question quiz about money, banking, and financial markets. The questions cover topics such as calculating aggregate price levels, government budget surpluses, the relationship between inflation and money supply, how decreases in demand deposits affect different measures of money supply, and the effects of interest rate changes. The quiz asks students to identify statements about these economic concepts.

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Mrmr Gawad
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65 views2 pages

Money and Banking Quiz for Students

This document contains a 10 question quiz about money, banking, and financial markets. The questions cover topics such as calculating aggregate price levels, government budget surpluses, the relationship between inflation and money supply, how decreases in demand deposits affect different measures of money supply, and the effects of interest rate changes. The quiz asks students to identify statements about these economic concepts.

Uploaded by

Mrmr Gawad
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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bFuture University in Egypt

Money, banking, and financial markets

Quiz 1

Answer ALL the following questions

1. The aggregate level price can be calculated by getting 1


b
a. The sum of all prices in the market
b. The average of prices in the market
c. The price of one good in the market
d. None of the above

2. Budget surplus exist when 2


d
a. Revenue of government is greater than taxes
b. Revenue of government is lower than taxes
c. Revenue of government is equal to taxes
d. None of the above

3. The relation between inflation and money supply is 3


a
a. Positive
b. Negative
c. Non significant
d. Unclear

4 If the demand deposits decreases in an economy, it means that 4


d
a. M1 decreases
b. M2 decreases
c. M3 decreases
d. All of the above

5. When the price of a stock increases, the firm 5


a
a. has an important propensity to invest in economies of scale
b. has to accept lower productivity levels on the long run
c. has to exit from the market on the short run
d. is probably under the breakeven point
6. The negative interest rate in Europe, on the short run, is counteracted by the effect of 6
a
a. Financial innovations
b. Decreasing of Purchasing power of consumers
c. Providing work to unemployment people
d. Higher levels of inflation

7. The financial crisis has a direct effect on 7


c
a. The Gross domestic product (GDP)
b. Purchasing power of consumers
c. Asset prices
d. Unemployment

8. Which state is true 8


c
a. We can compare the debt of Egypt and Qatar
b. We cannot compare the debt of Egypt and Qatar
c. We can compare the debt ratio to GDP of Egypt and Qatar
d. We cannot compare the debt ratio to GDP of Egypt and Qatar

9. When the interest rate decreases in a given country 9


a
a. The households will invest in alternatives markets
b. The households will pay more taxes
c. The firms will exit from the market
d. The foreign investors will deviate from investing in this country

10. In a barter economy with nine goods, we needrelations to fix a general price 10
level
a
a. 36
b. 72
c. 81
d. None of the above

Question:

State the difference between the function(s) of fiscal policy and the function(s) of monetary
policy.

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