Exam (elaborations)
ECN 460 Exam 1 - Practice Questions And Answers Latest Update
- Course
- ECN 460
- Institution
- Arizona State University
ECN 460 Exam 1 - Practice Questions And Answers Latest Update
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Solution 2024/2025Pepper
ECN 460 Exam 1 - Practice Questions And
Answers Latest Update
T or F: Monday is anything that is generally accepted in payment for goods
or services or in the repayment of debt ANS✔✔ True
T or F: Bitcoin is not considered money in the general economy because it
does not satisfy the "unit of account" and "store of value" money functions
ANS✔✔ True
T or F: Savings deposit is not included in the measure of M1 ANS✔✔ True
T or F: Money is the most liquid store of value in the economy ANS✔✔ True
T or F: Financing persistent budget deficits by money creation leads to
sustained inflation ANS✔✔ True
T or F: Assets such as TIPS, gold, and real estate are used as inflation
hedges ANS✔✔ True
T or F: When real income decreases, the demand for real money balances
decreases ANS✔✔ True
T or F: Payment innovation systems like Paypal impact M1 and M2 levels
ANS✔✔ False
, Solution 2024/2025
Pepper
T or F: T-bills and US savings bonds are components of M2 ANS✔✔ False
T or F: the only inflation measure the Federal Reserve is concerned with is
the PCE ANS✔✔ True
T or F: Last year, compared to the rest of the world the U.S. had the highest
levels of inflation ANS✔✔ False
T or F: QTM is based on 3 theories: Fisher perspective today ANS✔✔ False
T or F: Money policy still relies on the Fisher perspective today ANS✔✔ False
T or F: According to Keynesian perspective there are five motives for
holding money ANS✔✔ False
T or F: Theory of Portfolio choice focuses on how much of an asset people
want to hold in there portfolios ANS✔✔ True
T or F: Of the four factors (LIRE) influencing the demand for money wealth
and risk of other assets has a positive relationship with money demand
ANS✔✔ True
T or F: Together the liquidity and portfolio choice theories has given us 8
factors diving the demand for money ANS✔✔ True
T or F: Dr. Carbon said the US is definitely headed for a recession by the end
of the year ANS✔✔ False
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