国际金融题库第15章.docVIP

International Economics, 10e Global Edition (Krugman/Obstfeld/Melitz) Chapter 15 Money, Interest Rates, and Exchange Rates 15.1 Money Defined: A Brief Review 1.  The exchange rate between currencies depends on A)  national output. B)  the interest rate that can be earned on deposits of those currencies. C)  the expected future exchange rate. D)  the interest rate that can be earned on deposits of those currencies and the expected future exchange rate. E)  the interest rate that can be earned on deposits of those countries and the national output. Answer:  D Page Ref: 411-413 Difficulty: Easy  2.  Money serves as all of the following EXCEPT A)  a store of value. B)  a unit of account. C)  a highly liquid asset. D)  a symbol that is made of or can be redeemed for a fixed amount of precious metal. E)  a medium of exchange. Answer:  D Page Ref: 411-413 Difficulty: Easy  3.  Money includes A)  checking deposits held by households and firms. B)  futures and deposits in the foreign exchange market. C)  currency and checking deposits held by households and firms. D)  currency. E)  deposits in the foreign exchange markets. Answer:  C Page Ref: 411-413 Difficulty: Easy  4.  In the United States at the end of 2012, the total money supply, M1, amounted to approximately A)  40 percent of that years GNP. B)  20 percent of that years GNP. C)  30 percent of that years GNP. D)  50 percent of that years GNP. E)  16 percent of that years GNP. Answer:  E Page Ref: 411-413 Difficulty: Easy  5.  What are the main functions of money? Answer:  Money serves in general three important functions: a medium of exchange; a unit of account; and a store of value. As a medium of exchange, money avoids going back to a barter economy, with the enormous search costs connected with it. As a unit of account, the use of money economizes on the number of prices an individual faces. Consider an economy with