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Student: _____________________
Date: _____________________
Instructor: Max Melnikov
Course: Money and Banking Assignment: TEST 1
ID: End of Chapter 3.6
An article in the Wall Street Journal on blockchain notes that, The technology could cut $ billion in annual costs in global
banking . . .
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Source: Kim S. Nash, Blockchain: Catalyst for Massive Change Across Industries, Wall Street Journal, February 2, 2016.
Which of the following best describes blockchain technology?
A. A distributed system that registers ownership of funds and allows transactions to settle
overnight.
B. A distributed system that registers ownership of funds and allows transactions to
settle instantly.
C. A consolidated system that registers ownership of funds and allows transactions to settle
overnight.
D. A consolidated system that registers ownership of funds and allows transactions to settle
instantly.
How does blockchain technology lower banking costs?
A. It shifts costs from banks to consumers.
B. It eliminates banks and other middlemen.
C. It eliminates the expense of printing paper money.
D. It relies on complex technology.
ID: 2.3-15
All of the following statements regarding bitcoin transactions are true EXCEPT
A. bitcoin transactions are final and unlike credit card transactions, cannot be disputed by the
buyer.
B. bitcoin transactions are now more prevalent than cash transactions.
C. no permanent record of bitcoin transactions exists.
D. retailers pay a lower processing cost for bitcoin transactions than for credit card transactions.
ID: 1.1-14
Financial markets
A. generally provide lenders with lower returns than do financial intermediaries.
B. act as go betweens by holding a portfolio of assets and issuing claims based on that
portfolio to savers.
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C. channel funds indirectly between borrowers and lenders.
D. channel funds directly from lenders to borrowers.
TEST 1 https://xlitemprod.pearsoncmg.com/api/v1/print/en-us/econ
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1/22/2019, 11:50 PM
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ID: 2.2-4
When economists refer to the role of money as a store of value, they mean that
A. the value of money falls only when the quantity of money in circulation rises.
B. money allows value to be stored easily.
C. the value of money falls only when the quantity of money in circulation falls.
D. money never loses its value, unlike other assets.
ID: 1.2-2
What made the recession of 2007 2009 different than any other recession since the Great Depression?−
A. The government did not implement a fiscal stimulus.
B. It was accompanied by a financial crisis.
C. The impact was primarily limited to the financial sector.
D. The Fed failed to reduce interest rates.
Which of the following is the largest component of M1?
A. checking deposits
B. currency
TEST 1 https://xlitemprod.pearsoncmg.com/api/v1/print/en-us/econ
