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WorksheetsAP Econ: M22 & M23
Total questions: 45
Worksheet time: 23mins
Name
Class
Date
1.
The amount of savings is equal to:
a)
the amount of spending
b)
the amount of investment
c)
net exports
d)
government spending
2.
Economists view investment spending as spending on real capital. The investment discussed in these modules references:
a)
financial investment
b)
human capital
c)
residential investment
d)
structural unemployment
3.
The price, calculated as a percentage of the amount borrowed, charged by lenders to borrowers for the use of their savings for one year.
a)
wealth
b)
liability
c)
interest rate
d)
federal funds rate
4.
The difference between tax revenue and government spending when tax revenue exceeds government spending.
a)
budget surplus
b)
budget deficit
c)
budget balance
d)
national savings
5.
The difference between tax revenue and government spending when government spending exceeds tax revenue.
a)
budget surplus
b)
budget deficit
c)
budget balance
d)
national savings
6.
The difference between tax revenue and government spending.
a)
budget surplus
b)
budget deficit
c)
budget balance
d)
national savings
7.
The sum of private savings and the budget balance.
a)
budget surplus
b)
budget deficit
c)
budget balance
d)
national savings
8.
When other nations buy financial assets from the United States there is:
a)
capital outflow
b)
capital inflow
c)
net exports
d)
budget balace
9.
A paper claim that entitles the buyer to future income from the seller.
a)
financial asset
b)
physical asset
c)
liability
d)
debt
10.
A claim on a tangible object that gives the owner the right to dispose of the object as he or she wishes.
a)
wealth
b)
physical asset
c)
financial asset
d)
liability
11.
Where do households invest their current savings and their accumulated savings (called wealth) by purchasing financial assets?
a)
business
b)
government
c)
financial markets
d)
foreign sector
12.
A form of financial intermediary that creates a stock portfolio and then resells shares of this portfolio to individual investors.
a)
pension fund
b)
bond fund
c)
mutual fund
d)
life insurance fund
13.
The financial system achieves each of the following goals EXCEPT:
a)
reducing transaction costs
b)
reducing financial risk
c)
providing liquidity
d)
increasing financial reward
14.
Expenses relating to the negotiation and execution of a deal.
a)
fees and charges
b)
liabilities
c)
transaction costs
d)
management fees
15.
Investing in several different assets with unrelated risks.
a)
diversification
b)
expected rate of return
c)
liquidity
d)
bonds
16.
An asset is ______ if it can be quickly converted into cash without much loss of value.
a)
illiquid
b)
liquid
c)
fluid
d)
gaseous
17.
A borrower fails to make payments as specified by the loan or bond contract.
a)
bankruptcy
b)
liquid
c)
default
d)
Chapter 11
18.
An asset created by pooling individual loans and selling shares in that pool.
a)
default
b)
stock
c)
bond
d)
loan-backed security
19.
An institution that transforms the funds it gathers from many individuals into financial assets.
a)
loan-backed security
b)
financial intermediary
c)
stock market
d)
credit swap
20.
All of the following are types of financial intermediaries EXCEPT
a)
banks
b)
mutual funds
c)
life insurance companies
d)
trick - all of these are FIs.
21.
A nonprofit institution that invests the savings of members and provides them with income when they retire.
a)
Mutual fund
b)
exchange-traded fund
c)
pension fund
d)
insurance fund
22.
Any asset that can be easily used to purchase goods and services.
a)
liquid
b)
money
c)
wealth
d)
currency
23.
Cash held by the public.
a)
currency in circulation
b)
dollars
c)
money supply
d)
bank deposits
24.
Bank accounts on which people can write checks
a)
savings accounts
b)
money-market accounts
c)
checking accounts
d)
checkable bank deposits
25.
When money is used to pay for a good or service its role is:
a)
medium of exchange
b)
store of value
c)
unit of account
d)
savings vehicle
26.
When money is saved to spend at a later time its role is:
a)
medium of exchange
b)
store of value
c)
unit of account
d)
savings vehicle
27.
When money is used to set the price or measure the value of a good or service.
a)
medium of exchange
b)
store of value
c)
unit of account
d)
savings vehicle
28.
A good used as a medium of exchange that has intrinsic value in other uses (ex - gold)
a)
commodity money
b)
commodity-backed money
c)
fiat money
d)
kia money
29.
A medium of exchange with no intrinsic value whose ultimate value is guaranteed by a promise that it can be converted into valuable goods.
a)
commodity money
b)
commodity-backed money
c)
fiat money
d)
kia money
30.
A medium of exchange whose value derives entirely from its official status as a means of payment.
a)
commodity money
b)
commodity-backed money
c)
fiat money
d)
kia money
31.
The total value of financial assets in the economy that are considered money.
a)
money supply
b)
monetary aggregate
c)
near-moneys
d)
monetary policy
32.
An overall measure of the money supply:
a)
money supply
b)
monetary policy
c)
near moneys
d)
monetary aggregate
33.
Currency and coins in circulation + checking deposits + travelers checks:
a)
M1
b)
M2
c)
M3
d)
M4
34.
Currency and coins in circulation + checking deposits + travelers checks PLUS near-moneys
a)
M1
b)
M2
c)
M3
d)
M4
35.
Which aggregate is the most liquid?
a)
M1
b)
M2
c)
M3
d)
M4
36.
Financial assets that can't be directly used as a medium of exchange but can be readily converted into cash or checkable bank deposits
a)
near-moneys
b)
pseudo-moneys
c)
quasi-moneys
d)
hybrid moneys
37.
Which aggregate would credit cards be included in?
a)
M1
b)
M2
c)
M3
d)
None
38.
Money eliminates the need for:
a)
commodities
b)
resources
c)
barter
d)
money lenders
39.
A dollar bill, more accurately is:
a)
commodity-backed money
b)
a Federal Reserve note
c)
made of paper
d)
not in great enough supply in my wallet
40.
Which of the following is the least liquid?
a)
dollar bill
b)
savings account
c)
house
d)
quarter
41.
In which monetary aggregate(s) calculated by the Fed are checkable deposits included?
a)
M1
b)
M2
c)
M1 & M2
d)
Neither
42.
In the US, the dollar is
a)
backed by gold
b)
backed by gold and silver
c)
commodity money
d)
fiat money
43.
Which of the following is the most liquid monetary aggregate?
a)
M1
b)
M2
c)
near-monesy
d)
dollar bills
44.
When you decide you want $10 worth of Sour Patch Kids, money is serving which role(s)?
a)
medium of exchange
b)
store of value
c)
unit of account
d)
none of the above
45.
When you use money to purchase the $6 lunch special, money is serving which role?
a)
medium of exchange
b)
store of value
c)
unit of account
d)
MoE + UoA
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