Macro Economics MCQ

The major problem of a fractionally backed, convertible currency is that of
paper money being less durable than gold.
perennial shortages of paper currency.
counterfeiting.
the inability to redeem the currency into metal if too much is issued.


The real demand for money is
the nominal demand for money divided by the price level.
equal to the nominal demand for money as long as inflation is fully anticipated.
equal to the supply of money at all times.
the nominal demand for money multiplied by the price level.


Stable growth in the money supply rule will contribute to
increased ability for the Bank of Canada to "fine tune" the economy.
destabilization if the demand for money fluctuates.
stability of the price level.
inflation.


If there are more job vacancies than there are unemployed workers, then
there is excessive involuntary unemployment in this economy.
the economy has a high natural rate of unemployment.
the actual unemployment rate is less than the natural rate of unemployment.
there is no structural unemployment in this economy.


Financial assets, as opposed to real assets, are
more liquid than real assets.
created by borrowing and lending activities.
representive of a liability to the issuer and an asset to the purchaser.
all of these



Gresham's law predicts that
decreases in the money supply lead to a stable price level.
debased money will be driven from circulation.
bad money drives good money out of circulation.
debased money will circulate with undebased money.


A central bank can create money by
increasing the rate of inflation.
purchasing government securities on the open market.
selling government treasury bills to the chartered banks.
selling some of its foreign-currency reserves for domestic currency.


Monetary validation
can perpetuate inflation.
is not practiced by central banks in any industrialized countries.
causes a supply shock.
increases unemployment.


When metal coins, such as gold and silver were used as money, a technique which made them easy to recognize and which did not reduce their value was
sweating.
debasement.
milling.
re-minting.


Suppose that next year 300 000 existing jobs in the economy are eliminated and 200 000 new jobs are created. The unemployment rate will decline over that year if
more than 100 000 people drop out of the labour force.
more than 100 000 people join the labour force.
less than 100 000 people drop out of the labour force.
more than 300 000 people join the labour force.

Doji Candlestick

Doji is a very powerful candle shows a balance of supply and demand.

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Hanging Man Candlestick

Hanging Man candle which gives a very strong signal of a trend reversal.

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Inverted Hammer Candlestick

This candle implies a very strong signal of a trend reversal (to uptrend).

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Moving Average Indicator

This indicator is used on charts for trend identification.

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