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AP Macroeconomics Measuring Economic Output — practice questions — page 2

Explore 112 free Measuring Economic Output questions in AP Macroeconomics Economics. Open each question or exercise to read its content, reference answers and available explanation.

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Measuring Economic Output questions and exercises with answers

Showing questions 31–60 of 112.

The central bank of the United States is the:Read the answer and worked solution →Cash, checkable deposits and traveler's checks make up:Read the answer and worked solution →M2 includes M1 plus savings deposits, money market funds and:Read the answer and worked solution →A credit card purchase is not money but a:Read the answer and worked solution →Banks lower the cost of finding a lender or borrower. These costs are called:Read the answer and worked solution →A nonprofit financial institution owned and run by its members is a:Read the answer and worked solution →On a bank's balance sheet, customer deposits are recorded as:Read the answer and worked solution →A bank with $11 million in assets and $10 million in liabilities has net worth of:Read the answer and worked solution →The market where financial institutions buy and sell existing loans is the:Read the answer and worked solution →Bundling mortgages into a financial security sold to investors is called:Read the answer and worked solution →Mid-2000s loans made to borrowers with No Income, No Job or Assets were dubbed:Read the answer and worked solution →Lending to many types of customers to reduce default risk is called:Read the answer and worked solution →The Federal Reserve requires Singleton Bank to keep what share of its $10 million deposits on reserve?Read the answer and worked solution →As of 2013, the 12 largest US banks controlled what share of all banking assets?Read the answer and worked solution →Catch the M1 moneyRead the answer and worked solution →Pop the functions of moneyRead the answer and worked solution →Run the money supplyRead the answer and worked solution →Slice the banking wordsRead the answer and worked solution →Asset or liabilityRead the answer and worked solution →Sort the kinds of moneyRead the answer and worked solution →Type the numberRead the answer and worked solution →Money and banking 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

The central bank of the United States is the:

  1. Wall Street Bank
  2. World Bank Group
  3. Federal Reserve
  4. Treasury Board
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Correct answer: C. Federal Reserve

1. It regulates banks and runs monetary policy. 2. The Federal Reserve is the central bank. 3. It measures M1 and M2 weekly. _Source: OpenStax Principles of Macroeconomics for AP Courses 2e, Chapter 13, Money and Banking (CC BY 4.0)._

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Cash, checkable deposits and traveler's checks make up:

  1. M2
  2. M3
  3. M0
  4. M1
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Correct answer: D. M1

1. These are the most liquid monies. 2. Together they are M1. 3. M2 adds savings and time deposits. _Source: OpenStax Principles of Macroeconomics for AP Courses 2e, Chapter 13, Money and Banking (CC BY 4.0)._

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M2 includes M1 plus savings deposits, money market funds and:

  1. Certificates of deposit
  2. Credit card loan balances
  3. Corporate stock holdings
  4. Central bank gold bars
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Correct answer: A. Certificates of deposit

1. M2 is less liquid than M1. 2. Certificates of deposit are time deposits. 3. M1 is included inside M2. _Source: OpenStax Principles of Macroeconomics for AP Courses 2e, Chapter 13, Money and Banking (CC BY 4.0)._

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InflationMoney and BankingUnemploymentMonetary Policy and Bank RegulationExchange Rates and International Capital FlowsGovernment Budgets and Fiscal PolicyAggregate Demand and Aggregate SupplyDemand and Supply