Macro Sample Test _6 Ch 12,13,14

Macro Sample Test _6 Ch 12,13,14 - MacroTest#6Ch12,13,14...

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Macro Test #6 Ch 12,13,14 Student: ___________________________________________________________________________ 1. What function is money serving when you buy a ticket to a movie? A. A store of value B. A unit of account C. A transaction demand D. A medium of exchange 2. What function is money serving when you deposit money in a savings account? A. A store of value B. A unit of account C. A checkable deposit D. A medium of exchange 3. The M 1 money supply is composed of: A. Money market mutual funds held by individuals B. Money market mutual funds held by businesses C. Savings deposits and time deposits D. Checkable deposits and currency 4. Cathy Rogers deposits $200 in currency in her checking account at a bank. This deposit is treated as: A. A subtraction of $200 from the money supply because the $200 in currency is no longer in circulation B. An addition of $200 to the money supply because of the creation of a checkable deposit of $200 C. An addition of $200 to the money supply because the bank holds $200 in currency and the checking account has been increased by $200 D. No change in the money supply because the $200 in currency has been converted to a $200 increase in checkable deposits 5. What "backs" the money supply? A. The U.S. government's ability to keep the value of money relatively stable B. The amount of gold the U.S. government has on deposit at its banks C. The fact that currency is issued as Federal Reserve Notes D. The fact that the intrinsic value of coins in circulation is greater than their face value
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6. If the price index rises from 100 to 130, the value of the dollar will fall by about: A. 15 percent B. 19 percent C. 23 percent D. 30 percent 7. The Federal Reserve Banks are owned by the: A. Federal government B. Board of Governors C. United States Treasury D. Member banks 8. Members of the Federal Reserve Board of Governors are: A. Appointed by Congress to staggered 14-year terms B. Selected by the Federal Open Market Committee for 4-year terms C. Appointed by the President to staggered 14-year terms D. Selected by each of the Federal Reserve banks for 4-year terms 9. American dollars circulating abroad are a: A. Cost to the United States because American Express loses money on its traveler's checks B. Benefit to the United States because the nation can get rid of its used paper currency
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This note was uploaded on 06/05/2009 for the course ECO ECO2013 taught by Professor Jominy during the Summer '08 term at Broward College.

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Macro Sample Test _6 Ch 12,13,14 - MacroTest#6Ch12,13,14...

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