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Money and credit - Ivanov V.М.

Control questions

1. Define the equation of exchange.

2. Draw from memory the circuit of products and income.

3. What role does the financial market play in the circuit of products and revenues?

4. What is the relationship of the public sector with the circulation of products and incomes?

5. How can international economic ties be included in the circulation model?

Tests for self-control

1. Circuit of products and revenues (classical model) describes:

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

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

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

D) the flow of goods and services exchanged between households and firms, balanced by the counter-flow of cash payments made in this exchange.

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

A) the number of vehicles in use on 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 average weighted 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 value of the money supply on the velocity of circulation of money is equal to the product of the price level for the real national product;

E) answers c), d) correct;

F) all the answers are correct.

4. In the case of adding to the circuit of products and incomes of savings and investments, there are two ways in which funds can "travel" from households to product markets:

A) direct and costly;

B) indirect and channel;

C) direct and indirect;

D) cost and channel;

E) answers c), d) correct;

E) all answers are incorrect.

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

A) taxes;

B) public procurement;

C) loans;

D) the answers b), c) are correct;

E) all answers are incorrect;

F) all the answers are correct.