4. A demand Deposit is not a part of the Money supply (M1 M2) a. True--; b. Fals

Question

4. A demand Deposit is not a part of the Money supply (M1 M2) a. True--; b. False - Q5. CPI (Consumer Price Index) is a measure of a. b. c. d. Purchasing power of households the Value of an asset inflation, when we can compare the CPI over time None of the above Q6. The rate of inflation in any economy can be calculated based on the following a. CPI today minus CPI for the base year divided by the CPI for the base year multiplied by 100 b. The change in the CPI from year 1 to year 2 c. CPI today minus CPI tomorrow multiplied by 100 d. None of the above Q7. Which one of the following is NOT a role of the Financial Markets? a. Ensure Liquidity, maintain low transaction costs b. Share Information c. Risk Sharing d. Bring buyers and Sellers together Q 8. Do the financial intermediaries reduce transaction costs by specializing in the issuance of standardized securities? a. Yes---; b. No - Q9. While Present value is the Current value of an Asset, the future Value is what people will pay for the same asset 10 years from now a. True --; b. False Q 10. Interest Rate is the opportunity cost of holding Money today a. True b. False

Explanation / Answer

Answer.)

Q4.) b.) FALSE

Q5.) a.) Purchasing power of Households

Q6.) a.) CPI today minus CPI for the base year divided by the CPI for the base year multiplied by 100

Q7.) a.) Ensure liquidity, maintain low transaction costs

Q8.) b.) No

Q9.) a.) True

Q10.) a.) True

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