Financial Economics Quiz 1 (20 MCQs)

Quiz Instructions

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1. The aim of quantitative easing is to increase economic activity by
2. It is common to distinguish three motives for holding money:the transactions motive, the precautionary motive, and the speculative motive. The principal determinant of the size of transaction balances is:
3. ..... refers to how quickly and with what risks an asset can be converted into money.
4. A central bank pursues a policy of quantitative easing by purchasing government securities.What is likely to happen to interest rates and aggregate expenditure?
5. Currency circulation is part of
6. Reach and Sustainability are the primary goals of microfinance.
7. What is the key term for when a country or NGO donates resources to another country to help it develop.
8. Irrational exuberance about the future of the economy would lead to
9. The ability to express the value of goods and services in different amounts of a currency is money's function as .....
10. Gold is no longer used as money in modern societies. One of the reasons is that it is not .....
11. Refers to the expenditure for the purchase of making of new capital goods including inventories.
12. Murabaha is a type of Islamic financing that involves the sharing of profits and losses between the bank and the borrower.
13. If the stock market sees increases in all sectors the ..... of loanable funds will ..... because of the ..... effect.
14. Gharar is a must in Islamic Finance
15. Sukuk and bond conventional, both provide investors with payment streams
16. Which of the following is not a function of money?
17. If banks within a country's banking system generally have more money to lend out, we say that the supply of loanable funds increases (in other words, the supply curve shifts right). When this happens we would expect this to:
18. Broad money consists of ..... plus savings accounts and money market accounts.
19. Quantitative easing is a form of
20. If UK citizens become less concerned with the future and save less at each real interest rate,