the economics of money, banking, and financial markets

147 #

© 2014 Pearson Canada Inc.#

5.7 Web Appendix 2: Applying the Asset Market Approach to a Commodity Market: The Case
of Gold

1. 
   

   When stock prices become more volatile, the ____ curve for gold shifts right and gold
   prices ____, everything else held constant.
   A) demand; increase
   B) demand; decrease
   C) supply; increase
   D) supply; decrease
   Answer: A
   Diff: 2 Type: MC Page Ref: 5A.2- 15
   Topic: Questions for Web Appendix on Gold
   Skill: Applied
   Objective List: Appendix: Applying the Asset Market Approach to a Commodity Market: The
   Case of Gold

   
   


2. 
   

   A return to the gold standard, that is, using gold for money will ____ the ____ for
   gold, ____ its price, everything else held constant.
   A) increase; demand; increasing
   B) decrease; demand; decreasing
   C) increase; supply; increasing
   D) decrease; supply; increasing
   Answer: A
   Diff: 1 Type: MC Page Ref: 5.A2- 15
   Topic: Questions for Web Appendix on Gold
   Skill: Applied
   Objective List: Appendix: Applying the Asset Market Approach to a Commodity Market: The
   Case of Gold

   
   


3. 
   

   When gold prices become more volatile, the ____ curve for gold shifts to the ____;
   ____ the price of gold.
   A) supply; right; increasing
   B) supply; left; increasing
   C) demand; right; decreasing
   D) demand; left; decreasing
   Answer: D
   Diff: 1 Type: MC Page Ref: 5A.2- 15
   Topic: Questions for Web Appendix on Gold
   Skill: Applied
   Objective List: Appendix: Applying the Asset Market Approach to a Commodity Market: The
   Case of Gold