Understanding Money & Basic Calculations Chapter Exam

Exam Instructions:

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

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Question 1 1. What happens when there is an increase in the demand for money when the supply of money is unchanged?

Question 2 2. Kate is investing $1,000 and wants to double it in 8 years. What yearly, simple interest rate will she need to find?

Question 3 3. Money serves as a standard of deferred payment when:

Question 4 4. As she enters college, Amy puts $500 in a savings account that earns 3.5% simple interest yearly. At the end of 4 years, how much money will be in the account?

Question 5 5. A bond is _____.

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Question 6 6. Which of these is TRUE regarding money demand and price level?

Question 7 7. Which of the following will decrease the quantity of money demanded by consumers and businesses?

Question 8 8. The listed price of a dress is $59.99. If the tax is 8%, what is the total cost?

Question 9 9. When interest rates are 20%, the demand for money is:

Question 10 10. When a deposit is made into a bank, what does the bank do?

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Question 11 11.

A used car dealer has the following information for two months of sales:

Month 1: 239 cars sold

Month 2: 324 cars sold

Do we have an increase or a decrease and by how many cars?

Question 12 12. When money can be stored for a length of time and then used later to purchase goods and services, economists say that money is:

Question 13 13. The demand for money will fall when

Question 14 14. Why was money created?

Question 15 15. Which of the following produces a percentage increase?

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Question 16 16. As the price level decreases, how is the value of money impacted?

Question 17 17. How does the economy change every time banks loan out excess reserves?

Question 18 18. Arnold invested $7000 in his account and he had $8050 after 4 years. What was the yearly interest rate (simple interest)?

Question 19 19. The government issues a new two-dollar and fifty cent bill. What is the intrinsic value of the new currency?

Question 20 20. How does the demand curve for money shift?

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Question 21 21. When GDP is rising, money demand will most likely

Question 22 22. Philip is buying a video game that normally costs $85. It's on sale for 25% off. He has a coupon that will save him an extra 10% off the sale price. What is the cost he'll pay?

Question 23 23. What is the present value of a series of $50,000 payments for 10 years at an interest rate of 5% per year?

Question 24 24. Money is a medium of exchange because:

Question 25 25. Samantha just celebrated her first holy communion. Her parents opened a savings account (that earns 3% interest) for her to deposit the money that was gifted to her on this special occasion. Samantha deposits the $400 from her party. What will that amount will be worth in exactly 1 year from now?

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Question 26 26. Lydia deposits $70,000 into the First National Bank of Ceelo. The required reserve ratio is 10%. How much will the money supply increase if the bank loans out excess reserves?

Question 27 27. Steve is trying to earn $300 in interest for a new guitar. He puts $2500 in an account that earns 2% interest yearly (simple interest). How long will it take to earn $300?

Question 28 28. Which of the following is NOT true regarding the role of banks in the economy?

Question 29 29. Which of the following insures that the US dollar maintains its value?

Question 30 30.

A used car dealer has the following information for two months of sales:

Month 1: 239 cars sold

Month 2: 324 cars sold

What is the percentage change?

Understanding Money & Basic Calculations Chapter Exam Instructions

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

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