100 Free Test Bank for Introduction to Finance Markets Investments and Financial Management 14th Edition Melicher, Norton

Take 100 free test bank for Introduction to Finance Markets Investments and Financial Management 14th Edition Melicher, Norton multiple choice questions to develop your critical thinking and get an idea of the exam format. Inside, this useful textbook test bank for finance shows a lazer focus on money and the monetary system throughout difficulty based quizlets. You will stand a chance to identify your knowledge gaps, think more critically and skill up test taking. Outsside, they are friendly designed, allowing your stress-free practice. For multiple choice questions, kindly tick the best response to each quiz, and hit submit at the bottom of page 2 to have your results instantly checked and score. Similarly, you will need click on True or False response to each T/F question, and check out answers and total points by pushing the handy ‘submit’ at the end of the page. Enjoy it!

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Which of the following statements is most correct?

•  a. Both gold and silver have now been completely removed from any monetary role in the U.S. economy.
•  b. Savings deposits and small time deposits at depository institutions constitute part of the M1 money supply definition.
•  c. Fiat money is gold coins issued by central banks under authority of the government.
•  d. The monetary system of the United States today is based on a dollar standard, and the dollar can be converted into gold.

In the U.S., the dollar was defined in terms of gold until the:

•  a. present time
•  b. 1980s
•  c. 1970s
•  d. 1960s

The U.S. bimetallic standard was based on:

•  a. gold and platinum
•  b. silver and gold
•  c. gold and copper
•  d. silver and copper

Which of the following statements is false?

•  a. Until the Civil War, the federal government was the major issuer of paper money.
•  b. In order for traders in early economies to accept or barter for items, the supply of the item had to be limited in relation to the desire of individual in the economy to have the item.
•  c. Collectors of old coins and paper money are referred to as numismatists.
•  d. All of the above statements are false.

The function of money that expresses prices and contracts for deferred payments in terms of the monetary unit is referred to as:

•  a. store of purchasing power
•  b. standard of value
•  c. medium of exchange
•  d. credit money

Which of the following statements about L is not true?

•  a. L is the broadest measure of money available to the public
•  b. L includes commercial paper
•  c. L includes mortgages
•  d. All of the above statements are correct.

Checks may be cleared by:

•  a. the Federal Reserve
•  b. banks in the banking system
•  c. both the above
•  d. neither the above

Inflation is:

•  a. an increase in the purchasing power of money
•  b. a decrease in the quality of goods and services
•  c. an increase in the prices of goods and services not offset by increases in the quality of those goods and services
•  d. a measure of the money supply

Which of the following is not a component of the M1 definition of the money supply?

•  a. travelers’ checks
•  b. savings and small time deposits at depository institutions
•  c. currency held by the non-bank public
•  d. demand deposits at depository institutions

Barter involves the exchange of:

•  a. goods for gold
•  b. goods for silver
•  c. gold for silver
•  d. goods and services

Which of the following statements is false?

•  a. Legal tender is money backed only by government credit.
•  b. Credit money represents any circulating medium which has little real value relative to its monetary value.
•  c. The Monetary Act of 1792 resulted in an early monetary system that relied almost exclusively on the use of foreign coins.
•  d. All of the above statements are correct.

Which of the following statements are correct?

•  a. debit cards provide for the immediate direct transfer of deposit accounts
•  b. debit cards may be used for cash advances, even when there is not sufficient money in the account
•  c. debit cards may not be used to make cash withdrawals from automatic teller machines
•  d. all the above
•  e. none of the above

The public’s holdings of U.S. savings bonds are included in which of the following money supply definitions?

•  a. M1
•  b. M2
•  c. M3
•  d. M4 or L

Coining money and determining its value has been a governmental function in some cultures for about:

•  a. 3,000 years
•  b. 2,500 years
•  c. 1,900 years
•  d. 1,000 years

Paper money popularly called greenbacks was issued by the U.S. government to help finance which of the following wars?

•  a. Civil War
•  b. World War I
•  c. Revolutionary War
•  d. Spanish-American War

Fiat money is:

•  a. representative full-bodied money
•  b. full-bodied money
•  c. legal tender proclaimed to be money by law
•  d. all of the above

With a mint ratio of 15 to 1 between gold and silver and a market ratio of 15.5 to 1:

•  a. gold should go out of circulation
•  b. silver should go out of circulation
•  c. paper money will predominate
•  d. the bimetallic standard will be stable

Fiat money is:

•  a. paper money issued by central banks with full metallic backing
•  b. government notes representing a specific amount of gold in storage
•  c. full-bodied money
•  d. none of the above

The advantages claimed for a bimetallic standard were not gained in actual practice because:

•  a. one of the metals disappeared from circulation because the mint and market ratios were not the same
•  b. the supply of gold was inadequate
•  c. the supply of silver and gold was not balanced among the nations that were on a bimetallic standard
•  d. all of the above

Which are included in the money supply?

•  a. outstanding balances on credit cards
•  b. credit card limits
•  c. both the above
•  d. neither the above

Money market mutual funds do which of the following?

•  a. issue shares to customers
•  b. invest in liquid instruments
•  c. invest in interest-bearing debt instruments
•  d. all the above

When coins have an intrinsic value equal to the value of the metal they contain, they are referred to as:

•  a. full-bodied money
•  b. representative full-bodied money
•  c. token coins
•  d. all of the above