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Money and credit - Ivanov V.М.

Control questions

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

2. Proceeding from what determine the demand for money supporters of the quantitative theory?

3. What are the reasons that encourage people to keep a 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 the definition of aggregate demand in macroeconomics.

Tests for self-control

1. Aggregate demand is:

A) any economic aggregate;

B) what consumers are ready to buy with a rise in the price level;

C) increase in real output;

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 has;

E) answers a), b), c) are correct.

3. Quantitative theory explains the demand for money:

A) dependence on the absolute level of prices;

B) dependence on the level of real output;

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

D) the number of annual salaries paid to workers;

E) answers a), b), c) are correct;

F) all the answers are correct.

4. J. Keynes explained the demand for money:

A) the transaction motive and motive of precaution of storing a part of assets in the form of money;

B) speculative, transaction motives and motive of precaution of storing a part of assets in the form of money;

C) the desire to avoid losses of capital;

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 suggested by J. Keynes;

C) considers wealth as the determining factor in the demand for money;

D) examines the impact of such a factor as a change in expectations;

E) takes into account the presence of inflation;

E) all the answers are correct;

G) all answers are incorrect.