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AP Macroeconomics Inflation — practice questions — page 3

Explore 142 free Inflation questions in AP Macroeconomics Economics. Open each question or exercise to read its content, reference answers and available explanation.

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Inflation questions and exercises with answers

Showing questions 61–90 of 142.

Bank examiners of the Office of the Comptroller of the Currency work within which department?Read the answer and worked solution →Credit unions are supervised by the:Read the answer and worked solution →Depositors racing to withdraw their money from a bank is called a:Read the answer and worked solution →In the United States, deposit insurance is provided by the:Read the answer and worked solution →If an insured bank fails, depositors are guaranteed up to how much per account?Read the answer and worked solution →The Fed lending to banks that cannot borrow elsewhere is its role as:Read the answer and worked solution →The most common monetary policy tool in the US is:Read the answer and worked solution →The interest rate that commercial banks charge each other for overnight loans is the:Read the answer and worked solution →Decisions about open market operations are made by the:Read the answer and worked solution →The FOMC typically meets every:Read the answer and worked solution →When a central bank buys bonds from banks, the money supply:Read the answer and worked solution →The Federal Reserve was founded after which financial panic?Read the answer and worked solution →Monetary policy that lowers interest rates and stimulates borrowing is:Read the answer and worked solution →When output is above potential GDP with inflation pressure, the Fed should use:Read the answer and worked solution →Catch the Fed's policy toolsRead the answer and worked solution →Pop the central bankersRead the answer and worked solution →Run the Fed numbersRead the answer and worked solution →Slice the monetary wordsRead the answer and worked solution →Expand or tightenRead the answer and worked solution →Sort structure, regulation and policyRead the answer and worked solution →Type the numberRead the answer and worked solution →Monetary policy bingoRead the answer and worked solution →A general and ongoing rise in the level of prices in an entire economy is:Read the answer and worked solution →In November 2008, Zimbabwe's inflation rate reached:Read the answer and worked solution →At the peak of Zimbabwe's hyperinflation, a loaf of bread cost how many Zimbabwean dollars?Read the answer and worked solution →In 2017, one dollar had about the same purchasing power as how many cents in 1972?Read the answer and worked solution →A gallon of gasoline cost 36 cents in 1970 and in 2017 cost:Read the answer and worked solution →To measure the price level, economists start with a:Read the answer and worked solution →A simple average of prices is misleading because:Read the answer and worked solution →A student's basket costs $100 in period 1 and $106.50 in period 2. The inflation rate is:Read the answer and worked solution →

Worked practice questions

Bank examiners of the Office of the Comptroller of the Currency work within which department?

  1. Justice
  2. Defense
  3. Treasury
  4. Commerce
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Correct answer: C. Treasury

1. They review about 1,500 large banks on site. 2. The office sits in the Treasury Department. 3. It also watches about 800 savings and loans. _Source: OpenStax Principles of Macroeconomics for AP Courses 2e, Chapter 14, Monetary Policy and Bank Regulation (CC BY 4.0)._

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Credit unions are supervised by the:

  1. FDIC
  2. FOMC
  3. OCC
  4. NCUA
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Correct answer: D. NCUA

1. Over 6,000 credit unions exist. 2. The National Credit Union Administration supervises them. 3. Members own and run credit unions. _Source: OpenStax Principles of Macroeconomics for AP Courses 2e, Chapter 14, Monetary Policy and Bank Regulation (CC BY 4.0)._

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Depositors racing to withdraw their money from a bank is called a:

  1. Bank run
  2. Bank holiday
  3. Bank merger
  4. Bank audit
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Correct answer: A. Bank run

1. Even a rumour could trigger one. 2. This is a bank run. 3. Runs could destroy healthy banks. _Source: OpenStax Principles of Macroeconomics for AP Courses 2e, Chapter 14, Monetary Policy and Bank Regulation (CC BY 4.0)._

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