zuai-logo
  • Home

  • Mock Exam

  • Cliffs

  • Study Set

  • Talk to ZuAI

  • Request a Feature

zuai-logo
  1. AP Macroeconomics
FlashcardFlashcardStudy GuideStudy GuideQuestion BankQuestion Bank

Financial Sector

Question 1
1 mark
college-boardMacroeconomicsAPExam Style
1 mark

When a Central Bank conducts open market operations by selling government securities, what happens to overall liquidity in the banking system?

Question 2
1 mark
college-boardMacroeconomicsAPExam Style
1 mark

What function does money perform when it allows wealth to be saved for future purchases?

Question 3
1 mark
college-boardMacroeconomicsAPExam Style
1 mark

How might an unexpected increase in the inflation rate affect contracts made in terms of nominal values for future payments?

Question 4
1 mark
college-boardMacroeconomicsAPExam Style
1 mark

What effect would an increase in a nation’s interest rates have on its exchange rate in the short run?

Question 5
1 mark
college-boardMacroeconomicsAPExam Style
1 mark

When economists say that money acts as a store of value, they mean that money can do which of the following?

Question 6
1 mark
college-boardMacroeconomicsAPExam Style
1 mark

How would an appreciation of the domestic currency most likely affect a country's exports?

Question 7
1 mark
college-boardMacroeconomicsAPExam Style
1 mark

Which term describes money’s role in comparing the value of goods and services?

Feedback stars icon

How are we doing?

Give us your feedback and let us know how we can improve

Question 8
1 mark
college-boardMacroeconomicsAPExam Style
1 mark

Which of the following is an example of contractionary monetary policy?

Question 9
1 mark
college-boardMacroeconomicsAPExam Style
1 mark

What must true money have in order to efficiently facilitate trades between buyers and sellers?

Question 10
1 mark
college-boardMacroeconomicsAPExam Style
1 mark

In a liquidity trap situation where interest rates are close to zero but investment remains low, what unconventional monetary tool should the central bank employ?