Quick Quiz: The Money Market Chapter 14 (textbook 16) – 1. The asset demand for money and the rate of interest are: A. Inversely related B. Directly related C. Unrelated D. Both stable 2. The total quantity of money demanded is determined by: A. Subtracting the asset demand for money from the transactions demand for money B. Adding the transactions demand for money to the asset demand for money C. Subtracting the transactions demand for money from nominal GDP D. Adding the asset demand for money to nominal GDP 3. Refer to the above graph, in which is the transactions demand for money, is the total Dt Dm demand for money, and is the supply of money. The transactions demand for money in this Sm money market is: A. $125 B. $175 C. $250 D. $325 4. to the above graph, in which is the transactions demand for money, is the total Dt Dm demand for money, and is the supply of money. If the interest rate was 4 percent, the asset Sm demand for money would be: A. $125 B. $175 C. $200 D. $225 5. Refer to the above graph. If the supply of money was $250 billion, the interest rate would be: A. 1 percent B. 2 percent C. 3 percent D. 4 percent
Quick Quiz: The Money Market – Chapter 14 (textbook 16) 1. The asset demand for money and the rate of interest are: A. Inversely related B. Directly related C. Unrelated D. Both stable 2. The total quantity of money demanded is determined by: A. Subtracting the asset demand for money from the transactions demand for money B. Adding the transactions demand for money to the asset demand for money C. Subtracting the transactions demand for money from nominal GDP D. Adding the asset demand for money to nominal GDP 3. Refer to the above graph, in which Dt is the transactions demand for money, Dm is the total demand for money, and Sm is the supply of money. The transactions demand for money in this money market is: A. $125 B. $175 C. $250 D. $325 4. to the above graph, in which Dt is the transactions demand for money, Dm is the total demand for money, and Sm is the supply of money. If the interest rate was 4 percent, the asset demand for money would be: A. $125 B. $175 C. $200 D. $225 5. Refer to the above graph. If the supply of money was $250 billion, the interest rate would be: A. 1 percent B. 2 percent C. 3 percent D. 4 percent
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