AP Macro Unit 4 The Financial Sector, Money and Monetary Policy
Quiz by Mark Stegall
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36 questions
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- Q1Because any merchant will accept money in exchange for goods and services, money is useful as astore of valuemethod to incur ad pay back loans and debtmedium of exchangeunit of account30s
- Q2Which of the following is NOT a function of fiat money?A medium of exchangeA store of valueA unit of accountA source of intrinsic value30s
- Q3Dennis decides to loan his friend some money. He would like to see a 5% return on the loan. If the current rate of inflation is 15%, what should he charge as an interest rate?25%12%10%20 %30s
- Q4Sally decides to purchase an apartment complex. She would like to earn a 10% return on the apartment complex. If the current rate of inflation is -2%, what return does Sally need to invest in the apartment complex?12%14%8%6%30s
- Q5When a consumer decides to purchase a bond instead of holding cash, the consumer is giving upinvestment incomeliquidityinvestment riska store of value30s
- Q6Which of the following would be considered a major component of the money supply M1?money market accountsbondssavings depositscheckable deposits30s
- Q7According to the preceding list of items, which are considered to be part of the M1 money supply?I and VIII and VI and IIIII and IV30s
- Q8According to the preceding list of items, which are considered to be part of the M2 money supply?I and III, II, and III, and IVIV and VI, II, III, IV, and V30s
- Q9Jacob transgers $2000 from his savings account to his checking account. What effect will this transfer have on the M1 and M2 money supply?M1 will increase and M2 will increaseM1 will increase and M2 will decreaseM1 increase and M2 increaseM1 will increase and M2 will remain the same30s
- Q10Anna recently celebrated her 18th birthday. In many of her birthday cards, she found slips of paper from the U.S. government promising to repay a loan at a fixed interest rate. These slips of paper are known as.sharesbondsstocksbank loans30s
- Q11A stock isa claim of ownership in a businessAll answers provided are correct.a guarantee of future prices to be traded on the stock marketa certificate of indebtedness30s
- Q12M2 money supply refers totime deposits onlyM1 money, savings, accounts, tome deposits, and non-institutional money market fundssavings accounts onlyno answer provided is correct.30s
- Q13Anna recently celebrated her 18th birthday. In many of her birthday cards, she found slips of paper from the U.S. government promising to repay a loan at a fixed interest rate. These slips of paper are known asstocksbank loanssharesbonds30s
- Q14According to the list of items, which are considered to be part of the M1 money supply?III and VIII and IVI and VI and II30s
- Q15According to the preceding list of items, which are considered to be part of the M2 money supply?II, II, III, IV and VIV and BI and III, II, and III30s
