AP Macroeconomics Practice Test: Money and Banking

Test Information

Question 15 questions

Time 18 minutes

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1. Which of the following is not included in MI?

2. Which of the following is not included in M2?

3. Which of the following statements is true?

4. Fiat money

5. The Federal Reserve is

6. Required reserves

7. The secondary market for government securities is

8. If the reserve requirement is 2 percent, then the money multiplier is

9. If the FED buys bonds in the secondary market

10. Which of the following would lead to an expansion of the money supply?

11. Assume the reserve requirement is 10 percent. If the FED sells $29 million worth of government securities in an open market operation, then the money supply can

12. Assume the reserve requirement is 5 percent. If the FED buys $4 million worth of government securities in an open market operation, then the money supply can

13. When the FED lowers the discount rate its intention is to

14. Lowering reserve requirements would

15. The FED's Board of Governors has members, each serving -year terms.