i) TRUE or FALSE. The medium of exchange function of money enables individuals to make transactions using a debit card. (2 Marks)

ii) TRUE or FALSE. M1 and M2 money stay the same if an individual moves money from a savings deposit account to a money market deposit account. (2 Marks)

iii) TRUE or FALSE. The market interest rate more accurately reflects the true cost of borrowing. (2 Marks)

iv) TRUE or FALSE.Euro bonds are bonds issued in Euros and should be issued in a country in the Eurozone. (2 Marks)

v) TRUE or FALSE. Everybody becomes worse off when interest rates rise?(2 Marks)

vi) TRUE or FALSE. Financial intermediaries can take advantage of economies of scale and thus lower transactions costs. (2 Marks)

vii) TRUE or FALSE. A financial crisis is more likely to occur when the economy is experiencing deflation as opposed to when it is experiencing inflation? (2 Marks)

viii) TRUE or FALSE. Monetarists argue that control of inflation is the most effective method of achieving growth in the economy. (2 Marks)

ix) TRUE or FALSE. An open market sale always decreases the monetary base by the amount of the sale irrespective of whether the buyer of the bonds pays using a cheque or in currency. (2 Marks)

x) TRUE or FALSE. A run on the bank implies that a bank has more liabilities than assets, hence rendering the bank insolvent. (2 Marks)