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Section 5 WS AP Macroeconomics Exam Questions and Answers
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Section 5 WS AP Macroeconomics Exam Questions and Answers
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Section 5 WS AP Macroeconomics ExamQuestions and Answers
A iishare iiin iithe iiownership iiof iia iicompany iiheld iiby iia iishareholder iiis iiconsidered iia ii-
iiAnswers ii-stock
Which iiof iithe iifollowing iiwould iiaccurately iicharacterize iithe iiportion iiof iia iifirm's iiprofit
iipaid iito iithe iiowner iiof iione iishare iiof iiits iistock? ii- iiAnswers ii-dividend
A iibond iiis ii- iiAnswers ii-an iiIOU iithat iipays iiinterest
When iia iihousehold iimakes iia iiloan iito iia iifirm iiwith iithe iifirm iiproviding iiinterest iito iithe
iihousehold, iithis iiis iiknown iias: ii- iiAnswers ii-a iibond
Which iiof iithe iifollowing iiis iiconsidered iiinvestment iispending iiin iimacroeconomics? ii-
iiAnswers ii-GM iibuilds iia iinew iiplant iito iimanufacture iiautomobiles
In iia iisimple iieconomy, iiall iiinvestment iispending iimust iicome iifrom: ii- iiAnswers ii-saving
From iithe iistandpoint iiof iieconomic iigrowth, iibanks iiare iiimportant iito: ii- iiAnswers ii-
channel iiinvestment iiinto iisavings
The iiterm ii"liquid iiasset" iimeans ii- iiAnswers ii-asset iithat iiis iireadily iiconverted iito iicash
A iimutual iifund: ii- iiAnswers ii-owns iia iidiversified iiportfolio
The iiprimary iidifference iibetween iiM1 iiand iiM2 iiis iithat: ii- iiAnswers ii-M2 iiincludes
iisavings iideposits iiand iitime iideposits, iibut iiM1 iidoes iinot
Debit iicards iiare: ii- iiAnswers ii-considered iia iipart iiof iithe iimoney iisupply iisince iithey
iiallow iiaccess iito iia iipart iiof iithe iimoney iisupply
Currency iiin iicirculation iiplus iibank iireserves: ii- iiAnswers ii-form iiin iimonetary iibase
, The iireserve iiratio iiis iithe: ii- iiAnswers ii-fraction iiof iideposits iithe iibanks iihold iiin iitheir
iivaults
A iibank iirun iioccurs iiwhen: ii- iiAnswers ii-many iibank iidepositors iiare iitrying iito iiwithdraw
iitheir iifunds iifrom iithe iibank
Banks iicreate iimoney iiwhen iithey: ii- iiAnswers ii-make iiloans
Suppose iia iibank iialready iihas iiexcess iireserves iiof ii$800 iiand iithe iireserve iiratio iiis
ii20%. iiIf iiAndy iideposits ii$1,000 iiof iicash iiinto iihis iichecking iiaccount iiand iithe iibank
iilends ii$600 iito iiMelanie, iithat iibank iican iilend iian iiadditional: ii- iiAnswers ii-1,000
If iibanks iiwere iirequired iito iikeep ii100% iiof iideposits iiin iireserves, iithey iicould: ii-
iiAnswers ii-make iino iiloans
The ii________ iimultiplier iiis iiequal iito ii________ ii- iiAnswers ii-money; ii1 iidivided iiby iithe
iirequired iireserve iiratio
Suppose iithe iirequired iireserve iiratio iiwas ii10% iiand iithen iiit iiincreases iito ii20%, iithis
iiwould: ii- iiAnswers ii-results iiin iia iidrop iiin iithe iimoney iimultiplier iifrom ii10 iito ii5
In iithe iiU.S, iithe iiinstitution iithat iiis iicharged iiwith iidetermining iithe iisize iiof iithe
iimonetary iibase iiand iiwith iiregulating iithe iibanking iisystem iiis iithe: ii- iiAnswers ii-Federal
iiReserve
All iiof iithe iifollowing iiare iiresponsibilities iiof iithe iiFed iiEXCEPT: ii- iiAnswers ii-mint iibills
iiand iicoins
The iimajor iitools iiof iimonetary iipolicy iiavailable iito iithe iiFederal iiReserve iisystem
iiinclude: ii- iiAnswers ii-reserve iirequirements, iiopen iimarket iioperations, iiand iithe
iidiscount iirate
The iitool iiof iimonetary iipolicy iithat iiinvolves iithe iiFed's iibuying iiand iiselling iiof
iigovernment iibonds iiis: ii- iiAnswers ii-open iimarket iioperations
If iithe iiFed iiincreases iithe iidiscount iirate: ii- iiAnswers ii-the iimoney iisupply iiis iilikely iito
iidescrease
Federal iifunds iiare: ii- iiAnswers ii-loans iibetween iibanks
To iidecrease iithe iimoney iisupply, iithe iicentral iibank iicould: ii- iiAnswers ii-make iiopen
iimarket iisales
If iithe iiFed iiconducts iian iiopen ii- iimarket iipurchase: ii- iiAnswers ii-bank iireserves
iiincrease iiand iithe iimoney iisupply iiincreases
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