Exam 1 review questions Flashcards
What is the Current Yield?
Coupon payment / Price
Keynesian economics suggest what?
- Governments should engage in deficit spending during recessions.
- Governments should pay down debts during economic expansions.
Money has 3 defining characteristics, which one is the primary use?
A means of payment.
For a commodity based currency to be successful as a means of payment, unit of account and store of wealth it does NOT need:
to be controlled by a government or central bank.
Which is not included in the measure of M2?
- M1
- Savings deposit accounts
- M0
M0
A ______ is just an instruction to a bank to take funds from your account and transfer them to the person or firm whose name you have written on the pay to the order of line:
Check
Market liquidity refers to a financial institutions ability to
Sell assets for money.
According to Wright what had the highest correlation with inflation over the period 2002-2010?
The amount of consumer credit outstanding.
Which of the following is most likely to be the downfall of bitcoin?
The success of the currency requires trust, but users don’t know the source.
Which of the following suggests that, yes, we should trust the US government to limit the growth of M1 and M2?
Inflation in the US has been low or moderate for the past 25 years.
Which of the 5 is NOT one of the largest expense items for our federal gov?
EDUCATION SPENDING
one the US government budget how much did our expenses exceed our revenues?
$500 billion
Over the counter involves ______ and Electronic communication networks require____
A dealer
Nothing
Financial institutions _______
Reduce transaction costs by specializing in the issuance of standardized securities.
