Practise money functions, banking, quantity theory, quantitative easing and interest determination through MV=PT, money-market diagrams, transmission chains and policy evaluation.
A website compares the prices of groceries.
Which function of money is illustrated by this?
medium of exchange
standard of deferred payment
store of value
unit of account
D
Which statement about the quantity theory of money is correct?
It suggests changes in liquidity preference lead to proportional changes in the price level.
It suggests changes in the money supply lead to proportional changes in the price level.
It suggests changes in the price level lead to proportional changes in liquidity preference.
It suggests changes in the price level lead to proportional changes in the money supply.
B
What is not a function of a commercial bank?
to help firms raise finance
to hold cash on deposit for firms
to lend money to households
to provide savings accounts
A