stud
bud
Sign up
Log in
Home
Library
Explore
SAT
More
AP Macroeconomics Unit 4 Review Flashcards | StudBud
Explore
/
AP Macroeconomics Unit 4 Review
AP Macroeconomics Unit 4 Review
26 terms
·
StudBud Administration
·
944 plays
Financial Sector review quiz.
Flashcards
26 cards
F
Practice quiz
P
Host live
L
Questions
26
Answers
1
Which of the following will shift the money demand curve to the right?
A decrease in consumer confidence
A decrease in the money supply
An decrease in real GDP
An increase in the price level
2
Which of the following is not a function of the Federal Reserve?
Supervising banking activity
Making Social Security payments
Ordering the issuance of currency
Determining interest rates
3
The money demand curve shows the inverse relationship between
The nominal interest rate and the quantity of money demanded
The real interest rate and the quantity of money supplied
The supply of and demand for loanable funds
Money supply and money demand
4
The level of planned investment spending is inversely related to the________
level of consumer spending
level of actual investment spending
interest rate
rate of return on investment
5
The loanable funds market facilitates transactions between which two groups?
Lenders and Investors
Governments and Other Governments
Savers and Borrowers
Savers and Spenders
6
Which of the following will shift the aggregate demand curve to the left?
a decrease in interest rates
a decrease in the money supply
an increase in government purchases of goods and services
a decrease in taxes
7
Which of the following will shift the short-run aggregate supply curve? A change in...
all of the above
commodity prices
nominal wages
profit per unit of a good produced at any given price level
8
Investors in Japan pull their investments out of the United States. What is the effect?
The supply of loanable funds decreases
Aggregate demand increases
Money demand decreases
Money supply increases
9
In a limited reserves regime, the central bank will primarily rely on _____ to implement monetary policy.
The discount rate
The Federal Funds Rate
Open market operations
The reserve ratio
10
The graph shown below reflects which of the following?
Expansionary Monetary Policy
Contractionary Monetary Policy
An increase in money demand
An increase in the money supply
11
What is the real interest rate?
Inflation rate - nominal interest rate
Nominal interest rate - inflation rate
Real GDP - nominal inflation
Nominal interest rate + real wages
12
The graph shown below reflects which of the following?
An increase in aggregate demand
Contractionary Monetary Policy
An increase in the money supply
Expansionary Monetary Policy
13
What is on the left side of a bank balance sheet?
Liabilities
Assets
Left Twix
The magic beans
14
The central bank buys $20,000 of bonds from a bank. Which of the following will be credited $20,000?
Excess Reserves
Required Reserves
Outstanding Loans
Checkable Deposits
15
Money is a medium of exchange when
people use it to purchase goods and services.
people use it to compare prices.
people don't want a large.
people save it to accumulate future value.
16
Money that banks cannot loan out.
Fed Funds
Capital Inflows
Excess reserves
Required reserves
17
What is a bond?
A share of ownership in a corporation
A bank savings account
A time of heavy taxation
A debt instrument that pays a fixed rate of return.
18
If households increase their private savings, we would expect what result?
The demand for loanable funds increases.
The price level increases.
The money supply curve shifts left.
The supply of loanable funds increases.
19
What effect has the Amazon Store, which has a cash-free payment system, had on money demand?
It has had no effect on money demand.
It has increased money demand.
It has not affected money demand; money supply has increased.
It has decreased money demand.
20
What is monetary policy?
Actions by the central bank that raise or lower interest rates
The taxing and spending policies of Congress.
Investment in the stock market
The annual spending plan in households
21
What is on the right side of a bank balance sheet?
Liabilities
The Avengers
Government Securities
Assets
22
Which of the following will shift the aggregate demand curve to the right?
expansionary monetary policy
pessimistic consumer expectations
a decrease in wealth
contractionary monetary policy
23
In our ample reserves regime, the primary tool that the Fed uses to change interest rates is
The reserve ratio
Open market operations
The discount rate
Interest on the reserves of banks
24
The horizontal intercept of the long-run aggregate supply curve is
at the origin
equal to the vertical intercept
at actual output
at potential output
25
Which of the following constitutes M1 money?
All of the above
Checking Account Deposits
Currency in circulation
Savings Account Deposits
26
Expansionary monetary policy increases aggregate demand. This most likely resulted from which of the following?
An increse in money demand
A decrease in money supply
A decrease in the supply of loanable funds
An increase in money supply
