This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Macroeconomics – Quiz 9 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 9 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Who is in charge of Monetary Policy A) The Government. B) Banko Central ng Pilipinas. C) Land Bank of the Philippines. D) The Department of the Treasury. Show Answer Correct Answer: B) Banko Central ng Pilipinas. 2. The term "money" is used in economics in a very specific way. Which of these is NOT a correct use of this term from an economics perspective? A) Money overcomes the "double coincidence of wants.". B) Someone with a well-paying job in the financial sector "makes a lot of money.". C) "I don't trust banks, so my money is under my mattress.". D) "How can you tell me that I don't have any money in my checking account when I still have checks left in my checkbook?. E) These are all correct usages of the term "money.". Show Answer Correct Answer: B) Someone with a well-paying job in the financial sector "makes a lot of money.". 3. The total supply of goods and services available to a particular market from producers A) Aggregate Demand. B) Aggregate Supply. C) Demand. D) Supply. Show Answer Correct Answer: B) Aggregate Supply. 4. The ..... is the government's debt as a percentage of GDP. A) Debt-GDP Ratio. B) Government Debt. C) Public Debt. D) GDP Debt. Show Answer Correct Answer: A) Debt-GDP Ratio. 5. Which of the following is primarily responsible for the control of the money supply? A) The Federal Reserve System. B) The Federal Deposit Insurance Corporation. C) The comptroller of the Currency. D) The United States Treasury. Show Answer Correct Answer: A) The Federal Reserve System. 6. Increasing reserve requirements is used to ..... A) Fight recession. B) Stop inflation. Show Answer Correct Answer: B) Stop inflation. 7. Is this counted in the GDP of the US?The federal government purchases a new submarine for the US Navy. A) Yes. B) No. Show Answer Correct Answer: A) Yes. 8. Consumption Theory with Permanent Income Hypothesis according to Friedman is divided into..... A) 2. B) 3. C) 4. D) 5. E) Nothing is true. Show Answer Correct Answer: A) 2. 9. This economist argued that, under capitalism, the owners o the means of production and accumulated profits by exploiting their workers, and predicted that once the workers became sufficiently numerous and " immigrated, " they would eventually revolt and overturn the capitalist system A) Milton Friedman. B) Karl Marx. C) John Maynard Keynes. D) Adam Smith. Show Answer Correct Answer: B) Karl Marx. 10. Scarcity exists because A) Innovation causes unemployment. B) Physical capital does not depreciate. C) Human wants exceed the productive capacities of the economy. D) Supplies of land and other natural resources are unlimited. Show Answer Correct Answer: C) Human wants exceed the productive capacities of the economy. 11. Your employer withholds part of your income and sends it to the government to pay your taxes A) Pay-As-You-Earn. B) Taxable Income. C) Gift. D) Excise. Show Answer Correct Answer: A) Pay-As-You-Earn. 12. What are the three goals of every economy? A) To measure growth, reduce unemployment, and keep prices stable. B) To measure the health of the economy, fix the economy, and promote international trade. C) To measure GDP, calculate inflation, and implement fiscal and monetary policy. D) To measure the health of the economy, reduce unemployment, and promote international trade. Show Answer Correct Answer: A) To measure growth, reduce unemployment, and keep prices stable. 13. Which of the following best describes commodity money? A) Used to buy commodities in the market. B) Received after the sale of a good. C) Money value is equal to the commodity of which it's made. D) Value of commodity. Show Answer Correct Answer: C) Money value is equal to the commodity of which it's made. 14. Expansionary monetary policy (increase in money supply) under floating exchange rates A) Shifts LM* rightlowers exchange rateraises income. B) Shifts LM* rightlowers exchange ratelowers income. C) Shifts LM* leftlowers exchange rateraises income. D) Shifts LM* leftlowers exchange ratelowers income. Show Answer Correct Answer: A) Shifts LM* rightlowers exchange rateraises income. 15. The interest rate that banks must pay on money borrowed from Regional Federal Reserve Banks is the A) Discount rate. B) Inflation rate. C) Federal funds rate. D) Reserve requirement. Show Answer Correct Answer: A) Discount rate. 16. These include institutions such as pension funds, life insurance companies, and banks. A) Financial Intermediaries. B) Mutual Funds. C) Stocks. D) Bonds. Show Answer Correct Answer: A) Financial Intermediaries. 17. The process of money creation or credit creation is done by A) Commercial banks. B) Central bank. C) World Bank. D) Rural bank. Show Answer Correct Answer: A) Commercial banks. 18. GDP, CPI and unemployment are A) Signs that the economy is peaking. B) Signs that the economy is in contraction. C) Economic indicators used to determine the state and direction of the economy. D) Elements of both monetary and fiscal policy to stabilize the economy. Show Answer Correct Answer: C) Economic indicators used to determine the state and direction of the economy. 19. Given a PP curve for defense goods and nondefense goods, if a nation is currently producing at a point inside the PP curve, then A) It is possible to increase defense good production without sacrificing nondefense good production. B) Society is maximizing output from its limited supply of resources. C) The PP curve will start to shift to the left. D) Only if new technology is available will the nation be able to increase production of defense or nondefense goods. Show Answer Correct Answer: A) It is possible to increase defense good production without sacrificing nondefense good production. 20. Inflation can best be defined as ..... A) A general increase in prices. B) An increase in prices of key items purchased by consumers. C) The printing of too much paper money. D) None of above. Show Answer Correct Answer: A) A general increase in prices. ← PreviousNext →Related QuizzesEconomics QuizzesMacroeconomics Quiz 1Macroeconomics Quiz 2Macroeconomics Quiz 3Macroeconomics Quiz 4Macroeconomics Quiz 5Macroeconomics Quiz 6Macroeconomics Quiz 7Macroeconomics Quiz 8Macroeconomics Quiz 10 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books