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UNIT 4 Macroeconomics SAMPLE QUESTIONS …

advanced placement Economics Macroeconomics : Student Activities National Council on economic Education, New York, the letter of each correct The M1 definition of money includes which ofthe following? deposits (checkable deposits)III. Savings accounts and small time depositsIV. Eurodollars(A) I only(B) II only(C) III only(D) I and II only(E) II, III and IV only2. If the legal reserve requirement is 25 percent, thevalue of the simple deposit expansion multiplier is(A) 2.(B) 4.(C) 5.(D) 10.(E) When money is used as a standard of value, aperson is(A) earning more money than before.(B) purchasing a necessity.(C) making a financial transaction.(D) making price comparisons among products.(E) writing a check for Which of the following are true statementsabout the federal funds rate? is the same thing as the discount is the interest rate that banks charge eachother for short-term It is influenced by open market operations.

224 Advanced Placement Economics Macroeconomics: Student Activities ' National Council on Economic Education, New York, N.Y. …

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