Question 1

Changes in the general price level are

	A.	Not always unnecessary and not always undesirable.
	B.	Not always unnecessary and always undesirable.
	C.	Always unnecessary and always undesirable.
	D.	Always unnecessary and not always undesirable.

Question 2

Selgin argues that demand for money is not demand for any particular unit of money but is instead...

	A.	Demand for purchasing power
	B.	Demand for currency
	C.	Supply of currency
	D.	Demand for a variety of units

Question 3

What happened to the money multiplier following 2008?

	A.	Fell sharply.
	B.	Increased dramatically.
	C.	Held constant.
	D.	Increased slightly.

Question 4

Why is the size of the money supply hard to quantify?

	A.	It is difficult to determine how the money stock is changing.
	B.	There are too many $100 bills in circulation.
	C.	Monetary policy is futile.
	D.	It is difficult to determine what qualifies as money.

Question 5

Why is money demand not infinite?

	A.	Money demand is infinite.
	B.	Willingness to accept money is infinite but willingness to hold onto money is finite.
	C.	It is impossible for demand to be infinite.
	D.	Consumer demand is infinite but willingness to accept money as payment in finite.

Question 6

How is demand for money created?

	A.	By holding on to money
	B.	By spending money
	C.	By putting money in the bank
	D.	By drawing down interest rate reserves

Question 7

Are the effects of central banks actions predictable?

	A.	Yes
	B.	No
	C.	Selgin thinks that the Federal Reserve predetermines central banks actions.
	D.	Maybe

Question 8

A general change in prices is the same as an average change in prices.

	A.	True, an average change is a general movement in prices across the board
	B.	False, prices can change unevenly across industries
	C.	False, prices change evenly across industries
	D.	True, prices change unevenly across industries

Question 9

What level of control does Selgin think the FED has over interest rates?

	A.	He thinks the FED has influence but not control
	B.	He thinks the FED has no control nor influence
	C.	He thinks the FED has influence and control
	D.	He thinks the FED has control but no influence

Question 10

What is monetary policy about?

	A.	Central bank control
	B.	Money
	C.	Bubbles
	D.	Interest rates