PRINCIPLES OF MACROECONOMICS
STUDY SHEET 2026 EXAM QUESTIONS AND
ANSWERS EXPERT VERIFIED
◉stagflation. Answer: high inflation and high unemployment
◉assets. Answer: items of value owned by firms or individuals
◉asset-liability time mismatch. Answer: a bank's liabilities can be
withdrawn in the short term while its assets are repaid in the long
term
◉balance sheet. Answer: an accounting tool that lists assets and
liabilities
◉bank capital. Answer: a bank's net worth
◉barter. Answer: trading one good or service directly for another
◉commodity money. Answer: money that has value apart from its
use as money
, ◉credit card. Answer: a small plastic card issued by a bank,
business, etc., allowing the holder to take out a small loan to
purchase goods or services and pay for them later
◉debit card. Answer: like a check, is an instruction to the user's
bank to transfer money directly and immediately from your bank
account to the seller
◉demand deposit. Answer: checkable deposit in banks that is
available by making a cash withdrawal or writing a check
◉depository institution. Answer: institution that accepts money
deposits and then uses these to make loans
◉diversify. Answer: making loans or investments with a variety of
firms, to reduce the risk of being adversely affected by events at one
or a few firms
◉double coincidence of wants. Answer: a situation in which two
people each want some good or service that the other person can
provide
◉fiat money. Answer: has no intrinsic value, but is declared by a
government to be the legal tender of a country
STUDY SHEET 2026 EXAM QUESTIONS AND
ANSWERS EXPERT VERIFIED
◉stagflation. Answer: high inflation and high unemployment
◉assets. Answer: items of value owned by firms or individuals
◉asset-liability time mismatch. Answer: a bank's liabilities can be
withdrawn in the short term while its assets are repaid in the long
term
◉balance sheet. Answer: an accounting tool that lists assets and
liabilities
◉bank capital. Answer: a bank's net worth
◉barter. Answer: trading one good or service directly for another
◉commodity money. Answer: money that has value apart from its
use as money
, ◉credit card. Answer: a small plastic card issued by a bank,
business, etc., allowing the holder to take out a small loan to
purchase goods or services and pay for them later
◉debit card. Answer: like a check, is an instruction to the user's
bank to transfer money directly and immediately from your bank
account to the seller
◉demand deposit. Answer: checkable deposit in banks that is
available by making a cash withdrawal or writing a check
◉depository institution. Answer: institution that accepts money
deposits and then uses these to make loans
◉diversify. Answer: making loans or investments with a variety of
firms, to reduce the risk of being adversely affected by events at one
or a few firms
◉double coincidence of wants. Answer: a situation in which two
people each want some good or service that the other person can
provide
◉fiat money. Answer: has no intrinsic value, but is declared by a
government to be the legal tender of a country
