The ease with which an asset can be convertedinto a medium of exchange is known asa. volatility.b. liquidity.c. currency.d. speculative exchange.
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| The ease with which an asset can be converted into a medium of exchange is known as a. volatility. b. liquidity. c. currency. d. speculative exchange. |
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- Explain why you would be more or less willing to buygold under the following circumstances:a. Gold again becomes acceptable as a medium ofexchange.b. Prices in the gold market become more volatile.c. You expect inflation to rise, and gold prices tend tomove with the aggregate price level.d. You expect interest rates to rise.Liquidity refers to a. the ease with which an asset is converted to the medium of exchange b. a measurement of the intrinsic value of commodity money. c. the suitability of an asset to serve as a store of value. d. how many time a dollar circulates in a given year.The ease at which an asset can be converted into a medium of exchange is known as A. Inflation B. Profitability C. Liquidity D. Wealth
- Which of the following statement/(s) is/are false-Statement I: Savings deposit do not have restriction on number of withdrawal and deposit in a day. Statement II: Savings deposits do not offer overdraft facility to depositor. Statement IlI: Saving deposit holders can earn interest on available balance. O a. Statement I1&lI O b. Statement 1&lII c. Statement I & II O d. Only statement II is false. Clear my choiceTo say an asset is liquid implies that: a. We are only considering U.S. currency b. We are considering any asset that can be sold c. We are focusing on a category of assets that are in a physically liquid form, like oil d. We are considering assets that may be readily converted into a means of paymentTreasury bills are traded in a Select one: O a. money O b. stock O c. capital O d. d. government market.
- Which of the following functions as both a store of value and a medium of exchange? a. Cash and stocks b. Neither cash nor stocks c. Cash but not stocks d. Stocks but not cashMatch Column A with Column B by posting the letter of the correct answer. A B 1. The Sole Issuer of Currency Ceased to be liability of BSP а. 2. There is an Adequate currency to meet demand BSP Exchanges on demand currency in any den. w/o charge; b. | 3. Currency Management Comes before Production c. BSP does not accept deposit from the public 4.Forecasting d. 5.Inteconvertibility of currency е. Monetary Stability exists 6.If currency denomination on demanded is unavailable f. Forecasting, Isuance and Distribution, Retirement of currency, Preservation of Currency Integrity Enables BSP to influence on the prices of 7.Exclussive ability to influence money supply g. goods and services Provide denomination which most nearly approximate those requested 8. Currency integrity h. 9.Demonetized Currency Exists when currency notes and coins are accepted without doubt i. 10. Monetary Board j. BSP k. Prescribes the amount of notes and coinsAn issuing bank is responsible for: O a. preparing a bill of lading O b. making freight arrangements O c. issuing a certificate of origin O d. issuing a letter of credit
- If the manager of the open market desk hears that asnowstorm is about to strike New York City, makingit difficult to present checks for payment there and soraising the float, what defensive open market operationswill the manager undertake?Checkable deposits are money because a. only banks and other financial institutions can offer them. b. they can be converted into currency on demand and are used directly as a means of payment. C. they are guaranteed by banks. d. checks bounce when there are not enough funds to cash themn. O e. they are protected by the Federal Reserve.2. The liquidity of an asset is A. the ease with which you can sell the asset. B. the speed at which the asset increases in value. C. another name for the demand for the asset. D. the degree to which the government monitors sales of this sort of asset.