Q1. When comparing a barter economy with an economy that uses money as a medium of exchange we would expect increased efficiencies due to a reduction in which of the following? A) The need to specialize. B) Nominal interest rates. C) Transaction costs.
Q2. Which one of the following is least accurate with regard to money serving as a medium of exchange? Without money to serve as a medium of exchange: A) the transaction cost of exchange would increase. B) people would continue to enjoy their current standard of living and countries would become more self-sufficient in production of goods and services. C) people’s standard of living would probably decline.
Q3. A discussion of the economic functions of money and banking produced the following statements: Statement 1: Direct exchange of commodities is less efficient than money exchange because of the search costs involved in finding an individual with whom to trade. Statement 2: The cost of funds for borrowers is lower in an economy that features depository institutions than it would be in an economy that lacked them. Are these statements CORRECT? Statement 1 Statement 2
A) Correct Incorrect B) Correct Correct C) Incorrect Correct
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发表于 2009-1-15 14:28
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