Macroeconomics Review

The​ ​Consumer​ ​Price​ ​Index​ ​(CPI)​ ​can​ ​be​ ​defined​ ​as

• The​ ​market​ ​value​ ​of​ ​all​ ​final​ ​goods​ ​and​ ​services

• A​ ​measure​ ​of​ ​inflation​ ​based​ ​on​ ​the​ ​cost​ ​of​ ​a​ ​fixed​ ​“market​ ​basket”

All​ ​of​ ​these​ ​are​ ​functions​ ​of​ ​money​ ​​EXCEPT

• Medium of exchange

• Store of value

• Commodity money

• unit of measurement

Money loses its value when it

• It becomes too plentiful
• becomes too portabale
• is divisible
• is durable

Inflation is measured by...

• Consumer Price Index (CPI).
• Gross National Product (GNP).
• Gross Domestic Product (GDP).
• Securities & Exchange Commission (SEC).

A pair of shoes that costs $80 last month costs $100 this month. Which of the following BEST describes this economic condition?

• inflation

• recession

The central bank in the USA that regulates the monetary system

• The Fed
• FDIC

The percentage of a deposit that a bank must hold on to is called the ______.

• Reserve Requirement

• Credit

How many Federal Reserve Districts are in the U.S?

• 9
• 12

Money

• represents near-money

• is backed by gold

• is widely accepted for the payment of debt

• consists of bill only, not coins

Jack saves his money in a piggy bank. He is using money as a

• medium of exchange

• store of value

• unit of measurement

• bartering tool