Macro

Macro

University

20 Qs

quiz-placeholder

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Assessment

Quiz

Other

University

Medium

Created by

Giang Lưu

Used 1+ times

FREE Resource

20 questions

Show all answers

1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Liquidity refers to:

The ability of an asset to be sold at a profit

The ease with which an asset can be converted into cash without losing value

The stability of a currency over time

The interest rate applied to loans

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which of the following is an example of commodity money?

A credit card

Gold

A U.S. dollar bill

A check

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Fiat money is different from commodity money because:

It has intrinsic value

It is backed by gold reserves

It is declared as legal tender by the government

It cannot be used for transactions

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Demand deposits are:

A type of savings account

Bank deposits that can be withdrawn at any time without notice

Loans given to businesses

A form of fiat money

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

The institution responsible for setting monetary policy in the United States is:

The U.S. Treasury

The Federal Reserve

The World Bank

The International Monetary Fund

6.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

If the Federal Reserve wants to increase the money supply using open-market operations, it will:

Increase the reserve requirement

Buy government bonds

Raise the discount rate

Sell government bonds

7.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Why don’t banks hold 100% reserves?

It is illegal to hold too many reserves

Holding reserves is costly and reduces the ability to lend and generate interest income

The Federal Reserve does not allow them

Banks do not have enough physical space

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