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Marketing (6200) Exam 2017 Questions And Answers

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Sandra Watson
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Northeastern University

Marketing (6200)

Practice Test 4
1) The functions of money are to serve as a: 1) _______
A) Unit of account, store of value, and medium of exchange
B) Factor of production, exchange, and aggregate supply
C) Resource allocator, method for accounting, and means of income distribution
D) Determinant of consumption, investment, and government spending
2) Which of the following functions of money enables society to gain the benefits of geographic and labor
specialization?2) _______
A) Unit of account B) Store of value
C) Medium of deferred payment D) Medium of exchange
3) Money eliminates the need for a coincidence of wants in trading primarily through its role as a:
A) Unit of account B) Medium of exchange
C) Medium of deferred payment D) Store of value
4) The currency or money of the United States, like those of other countries, is: 4) _______
A) Intrinsic money B) Commodity money
C) Token money D) Deposit money
5) The Federal Open Market Committee (FOMC): 5) _______
A) Follows the actions and operations of financial markets to keep them open and competitive
B) Provides advice on banking stability to the Fed
C) Sets policy on the sale and purchase of government bonds by the Fed
D) Monitors regulatory banking laws for member banks
6) The most important among the Federal Reserve district banks in conducting monetary policy is the: 6)
A) New York bank B) Chicago bank
C) San Francisco bank D) Boston bank
7) The Federal Reserve System performs many functions but its most important one is: 7) _______
A) Providing for check clearing and collection
B) Acting as fiscal agent for the U.S. government
C) Issuing currency
D) Controlling the money supply
8) Fractional reserve banking refers to a system where banks: 8) _______
A) Hold only a fraction of their deposits in their reserves
B) Deposit a fraction of their reserves at the central bank
C) Grant loans to their borrowing customers
D) Accept a portion of their deposits in checkable accounts
9) What is one significant consequence of fractional reserve banking? 9) _______
A) Banks can serve the withdrawals of all their depositors
B) Banks can only lend an amount equal to its deposits
C) Banks hold a portion of their deposits in gold
D) Banks are vulnerable to “panics” or “bank runs”

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Marketing (6200) Exam 2017 Questions And Answers

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