the economics of money, banking, and financial markets

118 #

© 2014 Pearson Canada Inc.#

13. 
    

    If the price of gold becomes less volatile, then, other things equal, the demand for stocks will
    ____ and the demand for gold will ____.
    A) increase; increase
    B) increase; decrease
    C) decrease; decrease
    D) decrease; increase
    Answer: D
    Diff: 1 Type: MC Page Ref: 85
    Skill: Applied
    Objective List: 5.1 Explain the determinants of asset demand

    
    


14. 
    

    If brokerage commissions on bond sales decrease, then, other things equal, the demand for
    bonds will ____ and the demand for real estate will ____.
    A) increase; increase
    B) increase; decrease
    C) decrease; decrease
    D) decrease; increase
    Answer: B
    Diff: 1 Type: MC Page Ref: 85
    Skill: Applied
    Objective List: 5.1 Explain the determinants of asset demand

    
    


15. 
    

    If gold becomes acceptable as a medium of exchange, the demand for gold will ____
    and the demand for bonds will ____, everything else held constant.
    A) decrease; decrease
    B) decrease; increase
    C) increase; increase
    D) increase; decrease
    Answer: D
    Diff: 1 Type: MC Page Ref: 85
    Skill: Applied
    Objective List: 5.1 Explain the determinants of asset demand

    
    


16. 
    

    The demand for silver decreases, other things equal, when ____.
    A) the gold market is expected to boom
    B) the market for silver becomes more liquid
    C) wealth grows rapidly
    D) interest rates are expected to rise
    Answer: A
    Diff: 1 Type: MC Page Ref: 85
    Skill: Applied
    Objective List: 5.1 Explain the determinants of asset demand