ECON30005 Final Exam: Money and Banking Semester 2, 2021
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Quiz Instructions
Final Exam: Money and Banking (ECON30005)
Semester 2, 2021.
This is an open book exam. You may use any materials but must complete the exam independently from other people.
The exam contributes 70 percent to your final grade. There are three parts to the exam. Section A contains 10 multiple choice questions with each question worth one point. Section B contains 5 True/False/Uncertain questions, each worth 4 points. Section C contains 5 questions each worth 8 points. Answer all questions.
The exam is three hours and 30 minutes long. Late submissions are allowed 30 minutes after the end of the exam. Late submissions may incur a penalty.
Academic Integrity Declaration
By commencing and/or submitting this assessment I agree that I have read and understood the
University’s policy on academic integrity. (https://academicintegrity.unimelb.edu.au/#online- exams)
I also agree that:
1. Unless paragraph 2 applies, the work I submit will be original and solely my own work (cheating);
2. I will not seek or receive any assistance from any other person (collusion) except where the work is for a designated collaborative task, in which case the individual contributions will be indicated; and,
3. I will not use any sources without proper acknowledgment or referencing (plagiarism).
4. Where the work I submit is a computer program or code, I will ensure that:
a. any code I have copied is clearly noted by identifying the source of that code at the start of the program or in a header file or, that comments inline identify the start and end of the copied code; and
b. any modifications to code sourced from elsewhere will be commented upon to show the nature of the modification.
Question 1 |
1 pts |
In the Baumol-Tobin theory of money demand, if expenditure on transactions is increasing 5 percent a year and money demand is constant, we should expect a(n) _______ in interest rates of ______ percent per year. Assume that other factors are unchanged.
decrease, 10
increase, 5 increase, 10 uncertain without further information |
Question 2 |
1 pts |
|||
Which of the following was not observed in Prisoner of War camps, according to Radford?
None of the above |
Question 3 |
1 pts |
Consider the model that Geanakoplos presents in his work on leverage cycles. Assume that investors are able endowed with 2 units of money and 1 unit of the financial asset. Assume that the asset pays a return of 1 in the good state of the world and a return of 0.2 in the bad state of the world. Assume all other aspects of |
p* = h* + 0.2(1-h*) and h* = (1-h*)/p* |
p* = h* + 0.2(1-h*) and h* = (2-h*)/p* |
p* = h* + 0.2(1-h*) and h* = 2(1-h*)/p* |
None of the above
Question 4 |
1 pts |
|||
Which of the following is observed by McCandless and Weber?
None of the above |
Question 5 |
1 pts |
|||
If the central banks wants to lower the cash rate in the interbank market it should
none of the above |
Question 6 |
1 pts |
|||
Which of the following is a motive for holding money in the Baumol-Tobin model of money demand?
None of the above |
Question 7 |
1 pts |
|||
Which of the following is not true?
Larger firms are more able to access direct finance than smaller firms |
2022-07-18