Banking — Unit test Answers

Which best describes what occurs in the product market?

Read the graph about mortgage interest rates and housing starts between 1978 and 1983.A conclusion that can be drawn from both graphs by looking at 1983 is that interest rates

Which statement best describes why a government’s actions are important in macroeconomics? Check all that apply.Government controls industry through policy.Government is both a consumer and a producer.Government can prevent changes and challenges.Government can use policy to influence the economy.Government can accurately predict economic trends.

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Which is the best definition of inflation?

The circular flow model examines interactions between which sectors of the economy? Select THREE answers.privategovernmentforeigntechhouseholds

Which federal agency calculates the Consumer Price Index (CPI)?

Which is an advantage of using modern currency instead of a barter system?

The map shows GDP per capita in the United States for a given year.What conclusion can someone draw from the map?

What is the relationship between aggregate demand and the price level?

Typically, high inflation is a sign of

Bank deposits help the nation’s economy by

What types of money are included in the M2 category? Check all that apply.

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Which are the roles of a bank? Check all that apply.Storing and holding moneyMaking purchases to create profitsLending moneyInvesting in the economyCreating money for the economy

The graph shows changes in the US economy between 1971 and 2001.According to the graph, 1971 to 1976 was a period of stagflation due to

This is a graph of the business cycle.Time is measured along the x-axis. What is measured along the y-axis?

What would happen if currency in all countries had fewer denominations, i.e. fewer varieties of coins or numbers of bills?

The Federal Reserve manages the nation’s currency and money supply by

Why is gasoline weighted more heavily than tomatoes in a calculation of the annual inflation rate in the United States?