Question 1 (1 point) If interest rates can provide an incentive not to spend mon
ID: 1107431 • Letter: Q
Question
Question 1 (1 point)
If interest rates can provide an incentive not to spend money today, then, as interest rates rise:
Question 1 options:
a)
there is a movement upward along the supply curve for loanable funds.
b)
the supply curve for loanable funds shifts to the left.
c)
there is a movement downward along the supply curve for loanable funds.
d)
the supply curve for loanable funds shifts to the right.
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Question 2 (1 point)
Which statement is NOT true about Social Security?
Question 2 options:
a)
The minimum age to begin collecting benefits is 62.
b)
Social Security benefits people with longer life spans.
c)
It is funded by a payroll tax that is paid by both employees and employers.
d)
Payroll taxes for Social Security are a percentage of income, with no income limit.
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Question 3 (1 point)
As the real interest rate falls:
Question 3 options:
a)
the quantity demanded of loanable funds rises.
b)
the demand for loanable funds falls.
c)
less funds are demanded.
d)
the demand for loanable funds rises.
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Question 4 (1 point)
The functions of money include:
Question 4 options:
a)
a store of value.
b)
a unit of account.
c)
a medium of exchange.
d)
a medium of exchange, a unit of account, and a store of value.
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Question 5 (1 point)
In the market for loanable funds, savers are shown:
Question 5 options:
a)
on a downward-sloping supply curve.
b)
on a downward-sloping demand curve.
c)
on an upward-sloping supply curve.
d)
on an upward-sloping demand curve.
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Question 6 (1 point)
Which of these has the highest liquidity?
Question 6 options:
a)
stocks
b)
house
c)
cash
d)
savings accounts
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Question 7 (1 point)
The demand curve for loanable funds represents _____ and is _____.
Question 7 options:
a)
savers; horizontal
b)
investors; downward sloping
c)
savers; downward sloping
d)
investors; horizontal
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Question 8 (1 point)
Fiat money:
Question 8 options:
a)
was initially used by an automobile manufacturer.
b)
does not necessarily have any intrinsic value but has been declared by a government to be money.
c)
loses its value over time.
d)
is made out of commodities such as gold or silver.
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Question 9 (1 point)
Which source of short-term borrowing charges the highest average interest rates on unpaid balances?
Question 9 options:
a)
ordinary credit cards
b)
home mortgage loans
c)
student loans
d)
car loans for borrowers with good credit
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Question 10 (1 point)
Another term for a unit of account is:
Question 10 options:
a)
a store of value.
b)
a savings account.
c)
a bank account.
d)
a measure of value.
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Question 11 (1 point)
If firms' product demand increases, then the demand for loanable funds will shift to the _____ and the real interest rate will _____.
Question 11 options:
a)
right; decrease
b)
left; decrease
c)
right; increase
d)
left; increase
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Question 12 (1 point)
Liquidity refers to:
Question 12 options:
a)
how fast money travels throughout the economy.
b)
how quickly, easily, and reliably an asset can be converted into a medium of exchange.
c)
how fast money can be transferred from one account to another account.
Explanation / Answer
1. there is a movement upward along the supply curve for loanable funds.
2. Social Security benefits people with longer life spans.
3. the demand for loanable funds rises.
4. a medium of exchange, a unit of account, and a store of value.
5. on an upward-sloping supply curve.
6. cash
7. investors; downward sloping
8. does not necessarily have any intrinsic value but has been declared by a government to be money.
9. ordinary credit cards
10. a measure of value.
11. right; increase
12. how quickly, easily, and reliably an asset can be converted into a medium of exchange.