Quizalize logo
placeholder image to represent content

AP Macro Unit 4 The Financial Sector, Money and Monetary Policy

Quiz by Mark Stegall

Feel free to use or edit a copy

includes Teacher and Student dashboards

Measure skills
from any curriculum

Tag the questions with any skills you have. Your dashboard will track each student's mastery of each skill.

With a free account, teachers can
  • edit the questions
  • save a copy for later
  • start a class game
  • view complete results in the Gradebook and Mastery Dashboards
  • automatically assign follow-up activities based on students’ scores
  • assign as homework
  • share a link with colleagues
  • print as a bubble sheet
36 questions
Show answers
  • Q1
    Because any merchant will accept money in exchange for goods and services, money is useful as a
    store of value
    method to incur ad pay back loans and debt
    medium of exchange
    unit of account
    30s
    Edit
    Delete
  • Q2
    Which of the following is NOT a function of fiat money?
    A medium of exchange
    A store of value
    A unit of account
    A source of intrinsic value
    30s
    Edit
    Delete
  • Q3
    Dennis 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
    Edit
    Delete
  • Q4
    Sally 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
    Edit
    Delete
  • Q5
    When a consumer decides to purchase a bond instead of holding cash, the consumer is giving up
    investment income
    liquidity
    investment risk
    a store of value
    30s
    Edit
    Delete
  • Q6
    Which of the following would be considered a major component of the money supply M1?
    money market accounts
    bonds
    savings deposits
    checkable deposits
    30s
    Edit
    Delete
  • Q7
    According to the preceding list of items, which are considered to be part of the M1 money supply?
    Question Image
    I and V
    III and V
    I and II
    III and IV
    30s
    Edit
    Delete
  • Q8
    According to the preceding list of items, which are considered to be part of the M2 money supply?
    Question Image
    I and II
    I, II, and III, and IV
    IV and V
    I, II, III, IV, and V
    30s
    Edit
    Delete
  • Q9
    Jacob 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 increase
    M1 will increase and M2 will decrease
    M1 increase and M2 increase
    M1 will increase and M2 will remain the same
    30s
    Edit
    Delete
  • Q10
    Anna 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.
    shares
    bonds
    stocks
    bank loans
    30s
    Edit
    Delete
  • Q11
    A stock is
    a claim of ownership in a business
    All answers provided are correct.
    a guarantee of future prices to be traded on the stock market
    a certificate of indebtedness
    30s
    Edit
    Delete
  • Q12
    M2 money supply refers to
    time deposits only
    M1 money, savings, accounts, tome deposits, and non-institutional money market funds
    savings accounts only
    no answer provided is correct.
    30s
    Edit
    Delete
  • Q13
    Anna 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
    stocks
    bank loans
    shares
    bonds
    30s
    Edit
    Delete
  • Q14
    According to the list of items, which are considered to be part of the M1 money supply?
    Question Image
    III and V
    III and IV
    I and V
    I and II
    30s
    Edit
    Delete
  • Q15
    According to the preceding list of items, which are considered to be part of the M2 money supply?
    Question Image
    II, II, III, IV and V
    IV and B
    I and II
    I, II, and III
    30s
    Edit
    Delete
  • Q16
    the United States backing of the money supply comes from
    the full faith and credit of the U.S. government
    issuing Federal Reserve notes
    using land and other natural resources as collateral
    backing by large quantities of precious metals such as gold and silver to cover the amount of paper money in circulation
    30s
    Edit
    Delete
  • Q17
    If the consumer price index increased by 33 percent, the purchasing power of the U.S. dollar fell by
    50 percent
    75 percent
    25 percent
    100 percent
    30s
    Edit
    Delete
  • Q18
    Federal Open Market Committee is the main function of the
    enforcing financial securities laws
    buying and selling of securities to control the money supply and buying and selling government bonds
    monitoring the checkable deposits of commercial banks
    monitoring the Federal Reserve banks
    30s
    Edit
    Delete
  • Q19
    Consumers will NOT tend to purchase more goods and services using credit if
    the marginal propensity to consume is increased
    interest rates are increased
    the marginal propensity to save (MPS) if decreased
    interest rates are decreased
    30s
    Edit
    Delete
  • Q20
    The most important function of the Federal Reserve System is
    controlling the money supply
    lending money to commercial bans
    issuing currency
    overseeing the transactions between commercial banks and consumers
    30s
    Edit
    Delete

Teachers give this quiz to your class