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Money and credit - Ivanov V.M.

test questions

1. The difference between the concepts of "money" and "wealth."

2. Based on what do the supporters of quantitative theory determine the demand for money?

3. What are the reasons that encourage people to keep part of their wealth in the form of liquid monetary assets (according to J. Keynes).

4. Distinctive features of the modern theory of demand for money.

5. Give a definition of aggregate demand in macroeconomics.

Tests for self-control

1. Aggregate demand is:

a) any economic unit;

b) what consumers are willing to buy with an increase in the price level;

c) an increase in the real volume of production;

d) an economic aggregate equal to the real volume of national production;

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

e) all answers are incorrect.

2. Wealth is:

a) house and car;

b) a lot of cash;

c) securities;

d) everything that a particular individual possesses;

e) the answers a), b), c) are correct.

3. The quantitative theory explains the demand for money:

a) dependence on the absolute price level;

b) dependence on the level of real volume of production;

c) dependence on the velocity of money in the movement of income;

d) the number of annual salary payments to workers;

e) the answers a), b), c) are correct;

e) all answers are correct.

4. J. Keynes explained the demand for money:

a) a transaction motive and a precautionary motive for storing part of the assets in the form of money;

b) speculative, transactional motives and the precautionary motive of storing part of the assets in the form of money;

c) the desire to avoid capital losses;

d) the need to use money as a means of payment;

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

e) all answers are incorrect.

5. The modern theory of demand for money has such distinctive features:

a) considers a wide range of assets;

b) rejects the explanation of the demand for money on the basis of the motives proposed by J. Keynes;

c) considers wealth to be the determining factor in the demand for money;

d) considers the influence of such a factor as a change in expectations;

e) takes into account the presence of inflation;

e) all answers are correct;

g) all answers are incorrect.