Search Header Logo

AP Macro Unit 4

Authored by Sarah Smith

Social Studies

12th Grade

Used 52+ times

AP Macro Unit 4
AI

AI Actions

Add similar questions

Adjust reading levels

Convert to real-world scenario

Translate activity

More...

    Content View

    Student View

36 questions

Show all answers

1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Money is anything that:

serves as a medium of exchange for goods and services.
can be converted into silver with relatively little loss in value.
can be converted into gold with relatively little loss in value.
that is traded in the stock market.

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which of the following statements describes a function of money?

I. Money is a medium of exchange.

II. Money is a store of value.

III. Money is a unit of account.

IV. Money is a factor of production.

I and IV only.

I, II and IV only.

II, III and IV only.

I, II, and III only.

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

A reserve ratio is the:

proportion of cash and security reserves the bank needs to hold.
fraction of deposits that the bank is required to hold.
loan to deposit ratio in the bank's balance sheet.
money belonging to the bank's largest depositors.

4.

MULTIPLE CHOICE QUESTION

1 min • 1 pt

Suppose an economy has $200,000 of demand deposits and $40,000 of excess reserves with a 10% required reserve ratio. If the monetary authorities raise the required reserve ratio to 20%, then which of the following will likely follow?

The excess reserves will rise by 10%.
The excess reserves will fall by 10%.
There will be no more excess reserves in the system.
Excess reserves will decrease by $20,000.

5.

MULTIPLE CHOICE QUESTION

45 sec • 1 pt

Suppose the banking system does NOT hold excess reserves and the reserve ratio is 20%. If Sam deposits $500 of cash into his checking account, the banking system can create a total change to the money supply of

$5,000.

$2,000.

$2,500.

$400.

6.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

The major tools of monetary policy available to the Federal Reserve System include:

reserve requirements, margin regulations, and moral suasion.
reserve requirements, open-market operations, and the discount rate.
open-market operations, margin regulations, and moral suasion.
the discount rate, margin regulations, and moral suasion.

7.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

The discount rate is the interest rate the Fed charges on loans to:

consumers.
the federal government.
state governments.
banks.

Access all questions and much more by creating a free account

Create resources

Host any resource

Get auto-graded reports

Google

Continue with Google

Email

Continue with Email

Classlink

Continue with Classlink

Clever

Continue with Clever

or continue with

Microsoft

Microsoft

Apple

Apple

Others

Others

Already have an account?