MarcoEco quick review question

What does CPI stand for?

• Unemployment rate

• Consumer Price Index

• GDP

• National income

What is the main purpose of the Consumer Price Index (CPI)?

• To measure changes in unemployment

• To track the cost of living and inflation

• To calculate government spending

• To measure GDP

How do you calculate the inflation rate using the CPI?

• (Current CPI - Previous CPI) / Previous CPI * 100

• Current GDP - Previous GDP

• (Current wages - Previous wages) / Previous wages

• CPI / GDP deflator

What is the main role of financial intermediaries?

• To provide loans to the government

• To facilitate transactions between buyers and sellers

• To channel funds from savers to borrowers

• To collect taxes

In a closed economy, national saving equals:

• Exports minus imports

• GDP minus consumption and government spending

• Spending minus income

• Taxes minus transfers

Which of the following is not a type of financial intermediary?

• Commercial banks

• Mutual funds

• Stock exchanges

• Pension funds

The time value of money means:

• Money received today is worth more than money received in the future

• Money is always worth the same

• Money invested in the stock market always increases in value

• Money is not important in economics

Diversification reduces risk by:

• Spreading investments across various assets

• Focusing on one type of investment

• Investing only in

  low-risk assets

• Maximizing the potential return on each investment

Which of the following is not considered a financial asset?

• Stock

• Bond

• Real estate

• Mutual fund

The unemployment rate is defined as:

• Number of unemployed / population

• Number of unemployed / labor force

• Number of unemployed / working-age population

• Number of unemployed / total workforce