Podcast
Questions and Answers
What is required for a double coincidence of wants?
What is required for a double coincidence of wants?
- Two sellers who want the same thing
- Two buyers who want the same thing
- A buyer and a seller wanting the same thing
- Two buyers each wanting what the other has (correct)
Which of the following is a recognized function of money?
Which of the following is a recognized function of money?
- Medium of value
- Medium of store
- Store of exchange
- Unit of exchange (correct)
How does money function as a time machine for moving purchasing power?
How does money function as a time machine for moving purchasing power?
- Medium of exchange
- Store of value (correct)
- Medium of value
- Store of exchange
What do people give up when they demand money instead of interest on bonds?
What do people give up when they demand money instead of interest on bonds?
In the context of money, what does 'store of exchange' refer to?
In the context of money, what does 'store of exchange' refer to?
Why is money considered a unit of account?
Why is money considered a unit of account?
In a world where Say's Law always holds true, which function of money seems irrational?
In a world where Say's Law always holds true, which function of money seems irrational?
Which function(s) of money are considered rational in a world where Say's Law always holds true?
Which function(s) of money are considered rational in a world where Say's Law always holds true?
Why does holding money to reduce uncertainty align more closely with Keynes' view of money?
Why does holding money to reduce uncertainty align more closely with Keynes' view of money?
In a perfectly efficient market, which function of money would be least needed?
In a perfectly efficient market, which function of money would be least needed?
Which function of money becomes less relevant in a hyperinflationary economy?
Which function of money becomes less relevant in a hyperinflationary economy?
When interest rates are high, which function of money may be less attractive to individuals seeking to maximize returns?
When interest rates are high, which function of money may be less attractive to individuals seeking to maximize returns?
What is the primary function of money that allows individuals to easily compare the relative prices of products and services?
What is the primary function of money that allows individuals to easily compare the relative prices of products and services?
What is considered as the opportunity cost of holding money?
What is considered as the opportunity cost of holding money?
Which of the following statements is FALSE regarding the opportunity cost of holding bonds?
Which of the following statements is FALSE regarding the opportunity cost of holding bonds?
What is the role of interest rate in relation to holding money, as mentioned in the text?
What is the role of interest rate in relation to holding money, as mentioned in the text?
Which function of money involves making transactions easier by acting as a generally accepted intermediary in trade?
Which function of money involves making transactions easier by acting as a generally accepted intermediary in trade?
In terms of opportunity cost, what does holding bonds involve according to the text?
In terms of opportunity cost, what does holding bonds involve according to the text?
What is the primary role of the Bank of Canada?
What is the primary role of the Bank of Canada?
Do liquid assets generally earn a higher interest rate compared to loans to consumers?
Do liquid assets generally earn a higher interest rate compared to loans to consumers?
Who creates money in Canada based on the text?
Who creates money in Canada based on the text?
Is the money supply in Canada solely determined by the Bank of Canada?
Is the money supply in Canada solely determined by the Bank of Canada?
What is the interest rate primarily according to the text?
What is the interest rate primarily according to the text?
Which institution earns a lower interest rate on liquid assets?
Which institution earns a lower interest rate on liquid assets?
Which statement is FALSE regarding bonds and money as a store of value?
Which statement is FALSE regarding bonds and money as a store of value?
What is the term for the connection between changes in money markets and changes in aggregate demand?
What is the term for the connection between changes in money markets and changes in aggregate demand?
The quantity theory of money suggests that changes in the money supply primarily impact which of the following?
The quantity theory of money suggests that changes in the money supply primarily impact which of the following?
How do bond prices typically react to changes in interest rates?
How do bond prices typically react to changes in interest rates?
Which factor is NOT directly impacted by changes in the money supply according to the quantity theory of money?
Which factor is NOT directly impacted by changes in the money supply according to the quantity theory of money?
What effect does an increase in the money supply have on inflation according to the quantity theory of money?
What effect does an increase in the money supply have on inflation according to the quantity theory of money?
