What is the most important similarity between a bill of exchange and fiat money?

Taxes can be paid with either

The ability to settle debts with both

Both are issued by private banks

Both rely on trust to be accepted in use

Which of the following explains why people tended to hold onto gold coins and not spend them?

Law of supply and demand

Greshams law

Law of John Maynard Keynes

Law of diminishing returns

Which of the following is a root

cause of hyperinflation?

Political corruption

High interest rates

High levels of unemployment

Over reliance on export sector

Ancient legal systems of ancient Mesopotamia were developed mainly to?

Protect property rights

Protect human rights

Protect borrower's rights

Protect against personal bankruptcy

What is the main reason China is now concerned about the value of their currency falling too far below the US dollar?

Trade deficits

Inflation

Upsetting the US president

Deflation

Financial markets are primarily designed to facilitate which of the following activities?

Elimination of financial risk

Stimulate economic growth

Raising of capital

Development of important regulations

Which of the following is not

likely to occur during times of hyperinflation?

Money loses its purchasing power

People on fixed incomes are the hardest hit

Banks will issue more loans

It can stimulate the export market

What was the main cause of gold prices rising dramatically in 1971?

The elimination of the gold standard

The pegging of gold to the U.S. dollar

The rise of oil prices

The sale of gold reserves on the world markets

Which of the following fields describes people's irrational behaviour in the financial markets?

Game Theory

Rational Expectations Model

Efficient Markets Theory

Behavioural Economics

What is the main effect of deflation on an economy?

Rising interest rates

Rising tax rates

Rising prices

Falling prices

The Efficient Markets theory indicates which of the following?

Stock markets are highly efficient and rational

Stock markets are somewhat irrational and somewhat predictable

Bond markets are more volatile than stock markets

Bond markets are poor predictors of future recessions

What is the main reason for Canada discontinuing the penny?

Purchasing power parity

Poor quality metal available

Too heavy to carry

Inflation has reduced its value

If you purchase a stock for $18 and sell it for $20, the amount calculated is called:

A capital gain

A capital loss

A dividend loss

A dividend gain

The currency market is characterized as which of the following?

The smallest financial market

The largest financial market

The most complicated market

The oldest market

The most "liquid" items of barter often evolved into which of the following?

cash money

silver bars

coin money

proto money

Which of the following methods of financing government spending tends to be less risky from a political standpoint?

Cutting spending programs

Increased taxation

Printing money

Borrowing money

Which of the following has the least impact on the value of the Canadian dollar?

Exports

Interest rates

Oil prices

Stock market

he Mississippi Bubble describes which of the following events in 1720 France?

Bond Market Crash

Devaluation of French Money

War with England

The Black Death

What is the primary reason China has pegged (tied) their currency to the US dollar?

Inflation expectations

Mounting pressure from USA

Mounting pressure from Europe

Stimulate export growth

Which part of the world has the greatest use of mobile money because of the lack of banks?

Africa

Asia

South America

Eastern Europe

What is the name of the financial activity the currency trader George Soros used to profit from the drop in the value of the British Pound?

Short-sellinG

Buy and hold

Technical analysis

Currency default swaps

If you experience deflation in an economy, which of the following would you likely want to do?

Lend money

Save money

Borrow money

Both A and B above

Which one of the following institutions uses the 5 Cs of credit as an assessment?

Insurance company

Bank

Stock broker

Currency trader

Which of the following best

describes why gold has held its value vs. paper money?

Standard of value

Store of value

Medium of exchange

Government backing

Which of the following economists was the biggest proponent of free markets?

J.M. Keynes

Milton Friedman

Karl Marx

Joseph Stiglitz

he famous Taler coin from Europe is considered to be the originator of which of the following currencies?

Euro

Bolivar

Dollar

Amero

Which of the following is the most

different from the others?

A credit card

A smart card

A debit card

A prepaid card

The Amsterdam of 1600s was considered to be the home of which of the following?

Modern stock exchange

Modern currency exchange

Modern commodity exchange

Modern bond exchange

Which of the following describes the biggest difference between Ancient Persia and Ancient Greece?

Ancient Persia believed in the power of trade and free markets, Greece did not

Ancient Greece had a tributary economic system, Persia did not

Ancient Greece believed in the power of trade and free markets, Persia did not

Ancient Greece was an autocratic society based on a tributary economic system

The "tributary economic system can be best described as:

a trading system of public and private resources ownership.

a trading system focussed on providing goods to a central authority.

a trading system that is also known as a true market system

private resource ownership and individual decision makers

Which of the following is not considered to be the biggest benefit of going on a gold standard?

Less likelihood of deflation

Keeps interest rates low

Keeps inflation under control

Stimulates export growth

A

Which of the following is a correct

statement about hyperinflation?

People would tend to hold onto cash

It is better to be a lender than a borrower

People lose trust in their money

The import sector of a country suffers more than the export sector

Which of the following has the biggest impact in determining the values of international currencies?

Trade in goods and services

Firms engaged in currency speculation based on interest rates

War efforts being staged

Government debt

The use of cattle as money lead to which of the following financial terms:

cash

capital

collateral

calculation

The signing of the Treaty of Versailles in 1919 was considered the main reason for the collapse of this country's economy after WWl:

Russia

Germany

England

Japan

What is the main concern of a Government regarding deflation in an economy?

That housing prices will rise quickly

That people will delay purchases, leading to an economic slowdown

That seniors will suffer economically

That the economy will grow too quickly

What best describes the reason Canada stopped producing the silver dollar coin?

The Commodity Effect

The Cantillon Effect

The Gresham Effect

The Loonie Effect

What ancient western civilization invented the first coin money?

the Incas

the Greeks

the Romans

the Lydians

Which of the following is NOT a factor in money replacing barter?

Devaluation probleM

Indivisibility

Valuation dilemma

Portability

A mortgage on a house would considered which of the following?

A derivative

A bill of exchange

Leverage

Return on investment

Which of the following is considered to be the biggest development in money after coinage?

Bank cheque

Bills of exchange

The ducat

Treasury bill

The main reason "Rai" stones, from the island of Yap, were considered money was because:

they could find the stones on their island.

the needed something to value labour with.

people agreed to accept it as payment.

labour was considered to be a key factor.

What was the main reason that the government of New York pressured banks to start lending money to average Americans?

Consumer lay-away plans

Rising level of home rental costs

Loan sharking

Low interest rates

The earliest forms of debt (loans) were found as clay tablets in ancient Mesopotamia - on these tablets were evidence of:

Time period and interest rate

Time period and debt holder name

Debt holder name and interest rate

Interest rate and monetary value

Which of the following is as an early sign that a market collapse may occur?

Feelings that things are not okay and stock prices will likely fall

People have low levels of personal debt

Too many people placing money in the same type of financial asset

A high level of market interest rates

Which of the following currencies did the government try to hyperinflate to destroy capitalism in the country?

Chinese Yuan

Cuban Peso

Russian Ruble

North Korean Won

During WWll Germany used which of the following financial tactics to undermine the British economy and war effort?

Interest Rates

Counterfeiting

Currency Swaps

Short-Selling

Which international billionaire bet against the English pound in 1991 and made over a $1 billion in one day?

Warren Buffet

Carl Ichan

George Soros

Satoshi Nakamoto

The Bill of Exchange is considered an early form of?

Government Bond

Paper money

Commodity Money

None of the above

The auto industry is seen as the biggest reason this financial instrument became popular:

The term deposit

The credit card

The savings account

Cryptocurrencies