Types of money

What deposits are part of M1?

Checks linked to demand deposits are becoming ___ popular

What deposits are part of M2?

M2 is a key indicator used to forecast the ___

What is the correct statement?

A unit of account is a necessary requirement for the formulaton fo trade agreements that involve ___

Are works of art advisable as money?

Money is created by ___

The ___ is an increase in the general level of prices of goods and services in an economy over a period of time

Price indices are used to convert nominal values to ___ values or vice versa

Calculate the real GDP of 2016 over the year 2015 if the nominal GDP was 80,000 and the CPI was 110%

The consensus view is that a long sustained period of inflation is caused by a money supply growing (at a rate) ___ than the rate of economic growth

___ economic theory proposes that changes in the money supply don't directly affect prices, and that visible or measurable inflation is the result of pressures in the economy expressing themselves in prices

Demand inflation is generated for a ___ rate of economic growth as a result of excess demand due to favorable market conditions that stimulate investment and expansion

___ inflation is induced by adaptative expectations

Keynesian emphasize ___ aggregate demand during economic expansions to keep inflation stable

A ___ exchange rate can be used as a means to control inflation

The inflation rate in the country with an ___ exchange rate is determined by the inflation rate of the country of the currency to which it is linked

In the latter part of the 20th century, some countries reverted to a ___ excange rate as part of an attempt to control inflation

What is the characteristic of gold?

The Breton Woods System finally collapsed in ___

Under a gold standard, monetary policy would essentially be determined by the gold ___, which some believed contributed to the Great Depression

Artificially low prices often cause rationing and shortages and ___ future investment

In most recent periods in the industrialized world, average wages have increased ___ than most calculated cost of living indices

What does M0 make up?

Demand deposits are also known as ___ and other deposits that function as demand deposits

Automatic collection cards linked to demand deposits are becoming more ___

M2 represents money and ___ of money

What funds are part of M3?

What are the functions of money?

To function as a "unit of account", what is being used as currency must be:

Is real estate advisable as money?

The money created by the Central Bank ___

Inflation is usually measured by calculating the rate of change of a price index, usually the ___ Price Index

The ___ value refers to any price or value expressed in money of the day

Calculate the nominal GDP of 2016 over the year 2015 if the real GDP was 170,000 and the CPI was 180%

The ___ believe that the most important factor that influences inflation or deflation is the management of the money supply facilitating or hindering credit

Keynesians say that ___ is a major (but not the only) cause of inflation

___ inflation is caused by a fall in the aggregate supply of certain goods and services

Self-built inflation is often connected to the "___ spiral"

Keynesian emphasize increasing demand during ___ to keep inflation stable

If the value of the reference currency rises, the value of the currency linked to it ___

A fixed exchange rate ___ a government from using domestic monetary policy to achieve macroeconomic stability

In the latter part of the 20th century, Argentina linked its currency, the ___, to the US dollar

What is the characteristic of gold?

The Breton Woods System collapsed causing most countries to switch to the ___ currency, supported only by the laws of the country

Another method to correct inflationary problems, tried in the past has been the ___ control

The usual economic analysis is that any product or service that is priced too low is ___

Most living costs ___ forward

The ___ includes the European Central Bank and the national central banks of all the member states of the European Union, whether they have adopted the euro or not

M0 is the ___ from which other forms of money are created

What checks are part of demand deposits?

Like checks, automatic collection cards, as a means of completing a transaction through their link with demand deposits, can be considered as a form of ___

What is the correct statement?

What repurchase agreements are part of M3?

When money is used to mediate in the exchange of goods and services, it's performing a function as a ___

Are precious metals divisible?

Why are the coins made with ridges around the edges?

The Central Bank creates electronic money through ___

The Consumer Price Index measures the prices of ___

The ___ value is adjusted for the effects of inflation

Types of inflation according to the value of the ratio: ___ and moderate inflation

Monetarists see ___ policy, or government spending and taxation, as ineffective in controlling inflation

How many types of inflation are there according to Keynesians?

Cost inflation my be due to natural disasters, ___ of potencial production or increased prices of inputs for other reasons (in the production system)

Self-built inflation is based on the assumption that workers try to keep their wages above prices (above ___)

Control of aggregate demand can be achieved using ___

If the value of the reference currency falls, the value of the currency linked to it ___

Under the ___ agreement, most countries in the world had currencies that were pegged to the US dollar

Gold ___ is a monetary system in which the common medium of exchange is banknotes that are normally freely convertible into predetermined, fixed amounts of gold

What is the characteristic of gold?

___ economists were in favor of a return to a one hundred percent gold standard

Price and wage controls have been successful in wartime in combination with ___

In general the advice of economists ___ imposing price controls

The ___ system is the system that allows money transfers between savers and borrowers

The ___ includes the European Central Bank and the national central banks of those countries that have adopted the euro

M0 is traditionally the most ___ measure of the money supply

___ represents the assets that strictly make up the definition of money

What deposits are part of M2?

Economists use ___ when they want to quantify the amount of money in circulation

What are short-tem repurchase agreements called?

When money is used to mediate in the exchange of goods and services, it's performing a function as a medium of exchange. This avoids the inefficiencies of a barter system, such as the problem of ___

___ means that a unit or piece must be perceived as equivalent to any other

To act as ___, a commodity, a form of money, or financial capital must be able to be saved, stored, and recovered -and be predictable useful when it's recovered-

Commercial Banks create money through ___

Inflation is the percent change in a ___ index over a period of time

The ___ values don't specify how much of the difference is due to changes in the price level

Economists generally agree that high inflation rates and superinflation are caused by ___

Monetarists claim that the empirical study of monetary history shows that inflation has always been a ___

There are three main types of inflation, as part of what Robert J. Gordon calls the "___"

For example, a sudden ___ in the oil supply, leading to increased oil prices, can cause cost inflation

Self-built inflation is based on the assumption that workers try to keep their wages above prices (above inflation), and that companies pass on these higher labor costs to ther customers as higher prices, leading to a "___"

Under a ___ exchange rate regime, a country's currency is pegged in value to another currency or to a group of other currencies (or, sometimes, to another measure of value, such as gold)

If the value of a currency rises, it is said that the currency will ___

Under the Bretton Wood agreements, most countries in the world had currencies that were pegged to the US dollar. This ___ inflation in those countries

With the gold standard, the currency itself ___ is accepted by merchants because it can be exchanged for the gold equivalent

Representative (FIAT) money and the gold standard were used to protect citizens form hyperinflation and other monetary policy abuses, as seen in some countries during the ___

Gold standard protects against ___

There were notable failures of the use of the imposition of price and wage controls in 1972 by ___

In many countries, employment contracts, retirement benefits, and government entitlementes (such as unemployment benefit from Social Security) are linked to the cost of living index, typically the ___

The financial system is made up of banks, saving banks, insurance companies, ___, etc

M0 is usually called the ___

Assets that strictly make up the definition of money are assets that can be used to pay for a good or service or to pay for a ___

What deposits are part of M2?

Economists use M2 when they try to explain different ___ economic conditions

What assets are part of M3 and aren't part of M0, M1 or M2?

___ is a standard numerical unit of measurement of the market value of goods, services and other transactions

Are diamonds advisable as money?

When is legal currency such as paper or electronic money, which is no longer backed by gold in most countries not considered by some economists as a store of value?

The money that commercial banks create is called ___

If the Consumer Price Index goes from 100 to 102 inflation would be ___

Real values convert to nominal values as if prices were ___ in each year of the series

Low or moderate inflation can be attributed to:

The theory of the ___ of money simply indicates that the total amount of spending in an economy is fundamentally determined by the total amount of money in existence (circulation)

___ inflation is caused by increases in aggregate demand due to increased private and public spending

For example, a sudden decrease in the oil supply, leading to increased oil prices, can cause cost inflation. Producers to whom oil is part of their costs will pass it on to ___ in the form of increases prices

Monetarists emphasize keeping the growth rate of money ___, and using monetary policy to control inflation

A fixed exchange rate is usually used to ___ the value of a currency

If the value of a currency goes down, it is said that the currency will ___

After the Breton Woods agreements failed in the early 1970s, countries gradually reverted to ___ exchange rates

What is the characteristic of gold?

The gold standard was partially abandoned by the adoption of the ___ System

Under a gold standard, the long-term rate of inflation (or deflation) would be determined by the growth rate of ___ supply relative to total production

In general, wage and price controls are seen as ___ measures

Many economists and analysts consider the idea that the predetermined future "cost of living increases" are ___

___ is the central bank for the only European curency, the euro