Votamatic: Surveys

Exam questions - Chapters 5 and 6

Suppose the money supply is 500 CHF, real output is 1,000 units, and the price per unit of output is 1 CHF. What is the value of velocity of money?

0.20.525

According to the quantity theory of money, which of the following best describes what determines the rate of inflation in the long run?

The rate of change of the velocity of money.The rate of growth of real GDP per capita.The rate of growth of real GNP.The rate of growth of the money supply.

Currency in circulation is CHF 34 billions. Demand deposits (transaction accounts and sight deposits) are CHF 250 billion. Savings accounts are CHF 207 billions. Term accounts amount to CHF 97. Money supply M2 is:

34 billion284 billion491 billion588 billion

If money supply decreases by CHF 20 millions, while the reserve requirement is 20%, this implies that the SNB:

sold securities for CHF 4 million.bought US dollars for CHF 10 million.sold US dollars for CHF 10 million.bought securities for CHF 4 million.

Université de Genève