1. True or False: Money growth (as measured by percent of change year over year of M1 and M2) has been frequently negative between 1960 and today.

True

False

2. Holding all else constant, according to portfolio theories of money demand, if there is a large increase in real GDP, then what happens to money demand?

	A.	Money demand may go up or down
	B.	Money demand goes up
	C.	Money demand goes down
	D.	Money demand does not change because it is not affected by GDP changes

3. When you are discounting back a forecast of positive cash flow amounts that you expect to receive in the future, what happens to the present value (PV) of those cash flows if you use an increasingly higher discount rate in your analysis?

	A.	PV increases with higher discount rates
	B.	PV decreases with higher discount rates
	C.	PV may increase or decrease with higher discount rates
	D.	PV not affected by the higher discount rates

4. When broadly measuring the amount of money in the monetary system, US currency (which is made up of cash bills and cash coins) is the largest type of money in the US monetary system.

True

False