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A.P. Macroeconomics- The Money Market Flashcards | StudBud
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A.P. Macroeconomics- The Money Market
A.P. Macroeconomics- The Money Market
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Adahi ElizondoXD
Flashcards
18 cards
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Practice quiz
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Questions
18
Answers
1
If the supply of money increased,the interest rate will__and investment will__.
↓down, ↓down
↓down, ↑up
↑up, ↓down
↑up, ↑ up
2
The Three Functions of Money...
A unit of Account
A store of value
Standard for deferred payments
A medium of exchange
3
Unexpected inflation causes the demand for money to__and the interest rate to__.
↓down, ↓down
↓down, ↑ up
↑up, ↓down
↑up, ↑up
4
Who is done with school say I....
I
Absent...
I
I
5
What is Fiat Money?
Used for exchange but has no other important use
performs the function of money & has an alternative use
6
What is Liquidity?
A legal or financial obligation that must be paid back
Part of economy made up of institutions- focus on borrowers
Any item of economic value that can be converted into cash
Ease in which an asset can be converted to medium of exchage
7
Shifters of Money Supply
Reserve Ratio-% of deposits that banks must hold in reserve
NoNe
Discount rate
Open Market Operations
8
What is the transaction demand for money?
People do not demand money,an affect.
People demand money to make everyday purchases,no affect.
People demand money to make everyday purchases, an affect.
People do not demand money,no affect.
9
Commodity Money is
performs the function of money & has an alternative use
Used for exchange but has no other important use
10
Shifters of Money Demand...
All of the above
2. Changes income
1.Changes in price level
3. Changes in taxation that affect personal investment
11
What is the asset demand for money?
a.When people don't demand money
d.both b & c
c.They prefer it to other non-liquid assets like bonds
b.When people demand money as liquid asset
12
Who is better...
Other.
Spiderman
Deadpool
Captain America
13
Types of Money...
A & B are correct
B.Fiat Money
A.Commodity Money
C.Value Money
14
What are Assets?
The ease in which an asset can be converted into medium-exch
A legal or financial obligation that must be paid back
Any item of economic value that can be converted into cash
NoNe
15
What are Liabilities?
The ease in which an asset can be converted into medium-exch
A legal or financial obligation that must be paid back
NoNe
Any item of economic value that can be converted into cash
16
Whats better...more like who's going to fail...
DC
Marvel
17
What is The Financial Sector?
Focus on paring lenders and borrowers
The part of the economy made up of institutions that....
A legal or financial obligation that must be paid back
Any item of economic value that can be converted into cash
18
The money supply includes all assets like cash,demand deposits,bonds,and real estate.
None
False
True
