Financial Sector
Which of the following assets is generally considered the most liquid?
Real Estate
Stocks
Bonds
Cash
If the nominal interest rate is 7% and the expected inflation rate is 3%, what is the real interest rate?
10%
4%
21%
-3%
What is the primary function of money when it is used to compare the prices of different goods and services?
Medium of Exchange
Store of Value
Unit of Account
Hedge against inflation
If the reserve requirement is 10%, what is the money multiplier?
5
10
20
1
Which of the following factors would cause a shift in the money demand curve?
Change in the nominal interest rate
Change in the money supply
Change in the price level
Actions of the FED
Which of the following is a tool used by the Federal Reserve to conduct monetary policy?
Fiscal Spending
Taxation
Open Market Operations
Government Regulations
Which of the following factors shifts the supply curve in the loanable funds market?
Changes in investment demand
Changes in government borrowing
Changes in private savings
Changes in consumer confidence

How are we doing?
Give us your feedback and let us know how we can improve
Which of the following assets generally has the highest risk?
Government Bonds
Savings Accounts
Stocks
Certificates of Deposit (CDs)
Who benefits from unexpected inflation?
Lenders
Borrowers
Savers
Fixed income earners
Which of the following is included in M2 but not in M1?
Cash
Checking Accounts
Savings Accounts
Traveler's Checks