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Study Game - Topic 4.3

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Study Game - Topic 4.3

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The Definition, Measurement, and Functions of Money

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Zachary Foust
Zachary Foust
United States

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Study Game - Topic 4.3
 

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The Definition, Measurement, and Functions of Money

by Zachary Foust
1

On the island of Mabera, the local money is called “favoli.” The price of every good in Mabera is expressed as the number of favolis needed to buy the good. The use of favolis to express the price of goods describes which function of money?

2

The table above gives the value of various monetary measures, in millions of dollars. Based on the table above, what is the value of M1, a measure of the money supply?

3

The table gives the value of various monetary measures, in millions of dollars. Based on the table, what is the value of the monetary base?

4

Which of the following transactions will keep M1 unchanged?

5

Which of the following is included in the monetary base?

6

What is the nominal interest rate?

7

What is the real interest rate?

8

Which of the following types of financial assets is the most liquid?

9

Assume that the nominal interest rate rises. Which of the following will most likely occur?

10

Assume that the nominal interest rate is 7 percent and the inflation rate is 3 percent. What is the real interest rate?

11

What is included in M1?

12

Which of the following best describes the medium of exchange function of money?

 
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