Econ 203 midterm exam - Study guides, Class notes & Summaries

Econ 203 Midterm Exam Actual Questions and Answers Complete 1. Commercial banks create money by: A. printing them. B. keeping a fraction of deposits as reserves and lending the rest. C. they do not, only the central bank can create money. D. none of the above. 2. What is the role of a commercial bank? A. To maximize profits for its shareholders B. To take customers’ deposits and make loans C. To create money through the banking system D. All the answers are correct 3. Which of th...

Econ 203 Midterm Exam UPDATED ACTUAL Questions and CORRECT Answers three main indicators of performance - CORRECT ANSWER- rate of growth of output of goods and services, rate of inflation (price level), employment/unemployment rate Rate of growth of real gdp - CORRECT ANSWER- real gdp y2 - real gdp y1/real gdp y1 x 100 inflation rate - CORRECT ANSWER- cpi y2 - cpi y1/cpi y1 x 10

ECON 203 PRACTICE MIDTERM EXAM QUESTIONS AND ANSWERS INTRODUCTION TO MACROECONOMICS (CONCORDIA UNIVERSITY)

ECON 203 PRACTICE MIDTERM EXAM QUESTIONS AND ANSWERS INTRODUCTION TO MACROECONOMICS (CONCORDIA UNIVERSITY)

Economics - Correct Answer Economics is the study of choices made by people in the presence of scarcity Microeconomics - Correct Answer the study of the economic behavior and decision making of small units, such as individuals, families, and businesses Macroeconomics - Correct Answer the study of the economy as a whole, including topics such as inflation, unemployment, and economic growth economic models - Correct Answer Should be simple, general, useful. Not realistic Assumptions fo...