UNIT 29: THE MONEY SYSTEM

Câu Hỏi 1
The money supply includes all of the following, EXCEPT
Select one:
a. metal coins.
b. bank balances accessible with debit cards.
c. polymer currency.
d. lines of credit accessible with credit cards.
Câu Hỏi 2
If the reserve ratio is ¼ and the central bank increases the quantity of reserves in the banking
system by $120, the money supply increases by
Select one:
a. $150.
b. $160.
c. $90.
d. $480.
Câu Hỏi 3
A bank has capital of $200 and a leverage ratio of 5. If the value of the bank’s assets decline by
10 percent, then its capital will be reduced to
Select one:
a. $100. Decline in total capital=Leverage ratio*Percentage decline in asset
b. $180. = 5*10=50%
c. $185. So capital will be declined to 50%=100
d. $150.
Câu Hỏi 4
Economists use the term “money” to refer to
Select one:
a. all financial assets, but not real assets.
b. all assets, including real assets and financial assets.
c. all wealth.
d. those types of wealth that are regularly accepted by sellers in exchange for goods
and services.
Câu Hỏi 5
Which of the following is a store of value?
Select one:
 a. Vietnam government bonds
b. currency
c. fine art
d. All of the above are correct.
Câu Hỏi 6
Most financial assets other than money function as
Select one:
a. a store of value and a unit of account, but not a medium of exchange.
b. a medium of exchange, a unit of account, and a store of value.
c. a medium of exchange and a store of value, but not a unit of account.
d. a store of value, but not a unit of account nor a medium of exchange
Câu Hỏi 7
Which list ranks assets from most to least liquid?
Select one:
a. bonds, money, cars, houses
b. money, bonds, cars, houses
c. money, cars, houses, bonds
d. bonds, cars, money, houses
Câu Hỏi 8
Money is
Select one:
a. not the most liquid asset but a perfect store of value.
b. the most liquid asset but an imperfect store of value.
c. the most liquid asset and a perfect store of value.
d. neither the most liquid asset and nor a perfect store of value.
Câu Hỏi 9
The set of items that serve as media of exchange clearly includes
Select one:
a. balances that lie behind debit cards.
b. other checkable deposits.
c. demand deposits.
d. All of the above are correct.
Câu Hỏi 10
Which of the following is not included in M1?
Select one:
 a. 10,000,000 VND in your checking account
b. a 50,000 VND bill in your wallet
c. All of the above are included in M1.
d. 50,000,000 VND in your savings account
Câu Hỏi 11
A central bank’s setting (or altering) of the money supply is known as
Select one:
a. open-market operation.
b. monetary policy.
c. employment policy.
d. interest rate policy.
Câu Hỏi 12
The State Bank of Vietnam
Select one:
a. is not responsible for conducting the nation’s monetary policy, and it plays a role in
regulating banks.
b. is not responsible for conducing the nation’s monetary policy, and it plays no role in
regulating banks.
c. is responsible for conducing the nation’s monetary policy, but it plays no role in
regulating banks.
d. is responsible for conducting the nation’s monetary policy, and it plays a role in
regulating banks.
Câu Hỏi 13
Which of the following does the State Bank of Vietnam not do?
Select one:
a. It controls the supply of money.
b. It tries to ensure the health of the banking system.
c. It makes loans to any qualified business that requests one.
d. It acts as a lender of last resort to banks.
Câu Hỏi 14
If the State Bank of Vietnam decides to increase the money supply, then the State Bank of
Vietnam
Select one:
a. sells various types of stocks and bonds from its portfolio to the public.
b. sells government bonds from its portfolio to the public.
c. creates VND and uses them to purchase various types of stocks and bonds from the
public.
d. creates VND and uses them to purchase government bonds from the public.
Câu Hỏi 15
When the State Bank of Vietnam sells assets from its portfolio to the public with the intent of
changing the money supply,
Select one:
a. those assets are government bonds and the SBV’s reason for selling them is to increase
the money supply.
b. those assets are government bonds and the SBV’s reason for selling them is to
decrease the money supply.
c. those assets are items that are included in M2 and the SBV’s reason for selling them is
to increase the money supply.
d. those assets are items that are included in M2 and the SBV’s reason for selling them is
to decrease the money supply.
Câu Hỏi 16
Over one time horizon or another, a central bank’s policy decisions influence
Select one:
a. employment but not inflation.
b. inflation and employment.
c. neither inflation nor employment.
d. inflation but not employment.
Câu Hỏi 17
Suppose the banking system currently has $400 billion in reserves, the reserve requirement is 8
percent, and excess reserves amount to $5 billion. What is the level of deposits?
Select one:
a. $5,000 billion
b. $5,062.5 billion
c. $4,995 billion
d. $4,937.5 billion
Câu Hỏi 18
The manager of the bank where you work tells you that your bank has 6 billion VND in excess
reserves. She also tells you that the bank has 400 billion in deposits and 362 billion in loans.
Given this information you find that the reserve requirement must be
Select one:
a. 6/362. Loans+Excess Reserves+Required Reserves=Deposits
b. 38/400. =>Required Reserves=32
c. 44/400. Reserve Ratio=32/400=0.08=8%
d. 32/400.
Câu Hỏi 19
Suppose the banking system currently has $300 billion in reserves, the reserve requirement is 5
percent, and excess reserves are $30 billion. What is the level of loans?
Select one:
a. $6,000 billion
b. $5,100 billion =>ĐÚNG
c. $270 billion
d. $5,400 billion

Quy trình từng bước:

Bước 1: nhận 300

Bước 2: bỏ 300 tỉ vào két NHTM va 300 nay là reserve (theo sách ông Mankiw)
Ng
Ng

Bước 3: 5% của 300 sẽ là required và 30 là excess

Ng

Do đó 5% + 30 = reserve như tụi em hiểu

Bước 4: phần còn lại đem cho vay

 Deposit=300-30=270
 Loans=270:5%=5400

***Deposit=(300-30)/5%=5400

Loans=5400-300=5100

***LD= (300-30)/0.05 =5400

We know that 95% of deposits are held as loans so 5400*95% =5130
But 5130 is the level of loans if there are no any excess reserves. Hence, loans are actually:
5130 -30 = 5100

Total reserve = 300

Excess reserve = 30
Required reserve = 270
=> Deposit = 270/5% = 5400
Loan = 5400 - 270 - 30 = 5100
ok?
Câu Hỏi 20
If the State Bank of Vietnam raised the reserve requirement, then the money multiplier
Select one:
a. would increase.
 b. would not change.
c. would decrease.
d. could do any of the above.
Câu Hỏi 21
If you deposit 10,000,000 VND of currency into a demand deposit at a bank, this action by itself
Select one:
a. increases the money supply.
b. has an indeterminate effect on the money supply.
c. decreases the money supply.
d. does not change the money supply.
Câu Hỏi 22
The leverage ratio is calculated as
Select one:
a. the reciprocal of the required reserve ratio
b. the required reserve ratio multiplied by bank capital.
c. assets minus liabilities.
d. assets divided by bank capital
Câu Hỏi 23
When the Fed decreases the discount rate, banks will
Select one:
a. borrow less from the Fed and lend less to the public. The money supply decreases.
b. borrow less from the Fed and lend more to the public. The money supply increases.
c. borrow more from the Fed and lend more to the public. The money supply
increases.
d. borrow more from the Fed and lend less to the public. The money supply decreases.
Câu Hỏi 24
Other things the same, if reserve requirements are increased, the reserve ratio
Select one:
a. decreases, the money multiplier increases, and the money supply increases.
b. increases, the money multiplier increases, and the money supply increases.
c. decreases, the money multiplier decreases, and the money supply increases.
d. increases, the money multiplier decreases, and the money supply decreases.
Câu Hỏi 25
Tan and Huong decide to go on a vacation in their homeland, Vietnam. They withdraw 5,000
AUD from their savings account to purchase 5,000 AUD worth of traveler’s checks. As a result
of these changes,
Select one:
a. M1 decreases by 5,000 AUD and M2 increases by 5,000 AUD.
b. M1 and M2 stay the same.
c. M1 increases by 5,000 AUD and M2 stays the same.
d. M1 increases by 5,000 AUD and M2 decrease by 5,000 AUD.