Macro

Macro

University

20 Qs

quiz-placeholder

Similar activities

Monetary / Fiscal Policy

Monetary / Fiscal Policy

11th Grade - University

15 Qs

Monetary system

Monetary system

University

15 Qs

Money, fiscal and Monetary policy

Money, fiscal and Monetary policy

KG - University

23 Qs

Federal Reserve mbaker

Federal Reserve mbaker

6th Grade - University

20 Qs

Macroeconomics (ECO211)

Macroeconomics (ECO211)

University

20 Qs

Econ 104 Exam 3

Econ 104 Exam 3

University

22 Qs

CHAPTER 5.1

CHAPTER 5.1

University

16 Qs

Economic Development : Fiscal and Monetary Policy

Economic Development : Fiscal and Monetary Policy

University

20 Qs

Macro

Macro

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Bank deposits that can be withdrawn at any time without notice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

Create a free account and access millions of resources

Create resources
Host any resource
Get auto-graded reports
or continue with
Microsoft
Apple
Others
By signing up, you agree to our Terms of Service & Privacy Policy
Already have an account?