21. Which term refers to the purchasing power of money in terms of the goods and services it can buy?
a) Currency in circulation
b) Nominal money supply
c) Real money supply
d) Liquidity
22. Which term describes the ease with which an asset can be converted into cash without losing its value?
a) Currency in circulation
b) Nominal money supply
c) Real money supply
d) Liquidity
23. Which of the following would be considered a highly liquid asset?
a) Cash
b) Real estate
c) Stocks
d) Bonds
24. Which of the following would cause an increase in the money supply?
a) Central bank buying government securities
b) Central bank selling government securities
c) Decrease in bank lending
d) Increase in interest rates
25. Which of the following would cause a decrease in the money supply?
a) Central bank buying government securities
b) Central bank selling government securities
c) Increase in bank lending
d) Decrease in interest rates
