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  1. AP Macroeconomics
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Financial Sector

Question 1
MacroeconomicsAPConcept Practice
1 mark

Which of the following assets is generally considered the most liquid?

Question 2
MacroeconomicsAPConcept Practice
1 mark

If the nominal interest rate is 7% and the expected inflation rate is 3%, what is the real interest rate?

Question 3
MacroeconomicsAPConcept Practice
1 mark

What is the primary function of money when it is used to compare the prices of different goods and services?

Question 4
MacroeconomicsAPConcept Practice
1 mark

If the reserve requirement is 10%, what is the money multiplier?

Question 5
MacroeconomicsAPConcept Practice
1 mark

Which of the following factors would cause a shift in the money demand curve?

Question 6
MacroeconomicsAPConcept Practice
1 mark

Which of the following is a tool used by the Federal Reserve to conduct monetary policy?

Question 7
MacroeconomicsAPConcept Practice
1 mark

Which of the following factors shifts the supply curve in the loanable funds market?

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Question 8
MacroeconomicsAPConcept Practice
1 mark

Which of the following assets generally has the highest risk?

Question 9
MacroeconomicsAPConcept Practice
1 mark

Who benefits from unexpected inflation?

Question 10
MacroeconomicsAPConcept Practice
1 mark

Which of the following is included in M2 but not in M1?