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Money and credit - Ivanov V.M.

test questions

1. Define the equation of exchange.

2. From memory, draw a circuit of products and revenues.

3. What role does the financial market play in the product and revenue cycle?

4. What are the connections between the public sector and the product and income circuit?

5. How can international economic relations be included in the circuit model?

Tests for self-control

1. The product and revenue circuit (classic model) describes:

a) the free movement of goods and services, capital and labor to markets;

b) the flow of cash payments made during the exchange of goods and services in the markets;

c) the movement of goods and resources - clockwise, and the corresponding payments - in the opposite direction;

d) the flow of goods and services exchanged between households and firms, balanced by the counterflow of cash payments made during this exchange.

2. In the circulation of products and revenues, there are statistical quantities, the most important of which are:

a) the number of vehicles in use as of 01.01.20 .. year;

b) finished goods and services;

c) money;

d) finished goods and services and intermediate goods;

e) the answers a), d) are correct; g) all answers are incorrect.

3. The equation of exchange is:

a) the equation according to which the statistical amount of money is equal to the weighted average value of the prices of finished goods and services;

b) the equation according to which the national product coincides with the quantity of goods and services;

c) an equation representing a calculated dependence, which must always be observed;

d) the equation according to which the product of the money supply and the money velocity is equal to the product of the price level of the real national product;

e) the answers c), d) are correct;

e) all answers are correct.

4. If products and incomes add savings and investments to the circuit, there are two ways that funds can “travel” from households to product markets:

a) direct and costly;

b) indirect and channel;

c) direct and indirect;

d) costly and channel;

e) the answers c), d) are correct;

e) all answers are incorrect.

5. The public sector in the circulation of products and revenues is connected with the rest of the economic system through:

a) taxes;

b) government procurement;

c) loans;

d) answers b), c) are correct;

e) all answers are incorrect;

e) all answers are correct.