ECON 1500 EXAM ; TYLER BOWLES
2025 With 100% Correct Answers
The Financial Sector - CORRECT ANSWER✔✔facilities trade and specialization
Rich nations: - CORRECT ANSWER✔✔Typical have a lot of capital, specialize and trade.
They need a banking system
Money: - CORRECT ANSWER✔✔Serves as the medium of exchange
It is NOT: eliminates the need to specialize, is a liability when owned by a college student.
According to T. Bowles, which of the following should be included in the list of great intellectual
achievements of the humans? - CORRECT ANSWER✔✔Fractional Reserve Banking
Which of the following is in the correct historical order? - CORRECT ANSWER✔✔A. Barter, fiat
money, commodity money, hard money.
B. Fractional reserve banking, commodity money, fiat money.
C. Barter, commodity money, hard money, fiat money.
D. Medium of exchange, commodity money, hard money, fiat money.
Answer is c. Barter, commodity money, hard money, fiat money
If one U.S. dollar could be exchanged for a fixed amount of gold, the dollar would be: - CORRECT
ANSWER✔✔Hard money
,Assume Olga has 10 pounds of gold and issues 10 one-pound notes, each redeemable for a
pound of gold. Olga is: - CORRECT ANSWER✔✔Issuing hard Money
Assume Olga has 20 pounds of gold and issues 100 one-pound notes, each redeemable for a
pound of gold. Olga is: - CORRECT ANSWER✔✔engaging in fractional reserve banking with a 20
percent ratio?
Funds in your checking account: - CORRECT ANSWER✔✔It would be included in your list of
assets, is a medium of exchange, is a part of the M1 money supply.
Which of the following is a typical bank asset? - CORRECT ANSWER✔✔reserves, loans to
customers.
In the U.S., which of the following holds banks' reserves? - CORRECT ANSWER✔✔The federal
reserve
The Federal Reserve changes bank reserves and hence the money supply by: - CORRECT
ANSWER✔✔It is NOT changing the fees in charges to audit banks.
it is buying and selling assets to banks, changing the interest rete it pays on reserves.
If the reserve ratio is 100 percent, and banks keep no excess reserves, a new deposit of freshly
$20,000 will add _________ to the money supply: - CORRECT ANSWER✔✔20,000.
If the reserve ratio is 20 percent, a new deposit of freshly printed $2,000 will add _________ to
the money supply: - CORRECT ANSWER✔✔10,000
Assume Trump Bank has a reserve ratio of 20 percent. If a new customer, K. Harris, deposits $10
million, Trump Bank can make a maximum new loan of: - CORRECT ANSWER✔✔8 million.
, A bank applies a reserve ratio of 0.10. If it has demand deposits of $100,000 and is holding
$10,000 in reserves: - CORRECT ANSWER✔✔The bank is meeting its reserve requirement.
When a bank loans out excess reserves, the money supply: - CORRECT ANSWER✔✔Increases.
It does not increase, decrease, or increaser decrease depending on how the loan is used.
If the reserve ratio is 0.50, the money multiplier is: - CORRECT ANSWER✔✔2.0
If the Federal Reserve raises the interest rate it pays on reserves, banks: - CORRECT
ANSWER✔✔They will want to hold more reserves and reduce lending
Which institutions can create money? - CORRECT ANSWER✔✔The Fed with an assist from banks
Which of the following illustrate(s) economic growth? - CORRECT ANSWER✔✔PPC shifts
outward
Better technology would: - CORRECT ANSWER✔✔Lead to economic growth and shift the LAS to
the right.
It is not shift the PPC outward.
Which of the following factors will likely increase economic growth? - CORRECT ANSWER✔✔a
higher labor force participation rate
Which of the following is most closely associated with the Classical growth model? - CORRECT
ANSWER✔✔The industrial revolution.
It is not the development of inegration, the invention of diesel engines or Plat
2025 With 100% Correct Answers
The Financial Sector - CORRECT ANSWER✔✔facilities trade and specialization
Rich nations: - CORRECT ANSWER✔✔Typical have a lot of capital, specialize and trade.
They need a banking system
Money: - CORRECT ANSWER✔✔Serves as the medium of exchange
It is NOT: eliminates the need to specialize, is a liability when owned by a college student.
According to T. Bowles, which of the following should be included in the list of great intellectual
achievements of the humans? - CORRECT ANSWER✔✔Fractional Reserve Banking
Which of the following is in the correct historical order? - CORRECT ANSWER✔✔A. Barter, fiat
money, commodity money, hard money.
B. Fractional reserve banking, commodity money, fiat money.
C. Barter, commodity money, hard money, fiat money.
D. Medium of exchange, commodity money, hard money, fiat money.
Answer is c. Barter, commodity money, hard money, fiat money
If one U.S. dollar could be exchanged for a fixed amount of gold, the dollar would be: - CORRECT
ANSWER✔✔Hard money
,Assume Olga has 10 pounds of gold and issues 10 one-pound notes, each redeemable for a
pound of gold. Olga is: - CORRECT ANSWER✔✔Issuing hard Money
Assume Olga has 20 pounds of gold and issues 100 one-pound notes, each redeemable for a
pound of gold. Olga is: - CORRECT ANSWER✔✔engaging in fractional reserve banking with a 20
percent ratio?
Funds in your checking account: - CORRECT ANSWER✔✔It would be included in your list of
assets, is a medium of exchange, is a part of the M1 money supply.
Which of the following is a typical bank asset? - CORRECT ANSWER✔✔reserves, loans to
customers.
In the U.S., which of the following holds banks' reserves? - CORRECT ANSWER✔✔The federal
reserve
The Federal Reserve changes bank reserves and hence the money supply by: - CORRECT
ANSWER✔✔It is NOT changing the fees in charges to audit banks.
it is buying and selling assets to banks, changing the interest rete it pays on reserves.
If the reserve ratio is 100 percent, and banks keep no excess reserves, a new deposit of freshly
$20,000 will add _________ to the money supply: - CORRECT ANSWER✔✔20,000.
If the reserve ratio is 20 percent, a new deposit of freshly printed $2,000 will add _________ to
the money supply: - CORRECT ANSWER✔✔10,000
Assume Trump Bank has a reserve ratio of 20 percent. If a new customer, K. Harris, deposits $10
million, Trump Bank can make a maximum new loan of: - CORRECT ANSWER✔✔8 million.
, A bank applies a reserve ratio of 0.10. If it has demand deposits of $100,000 and is holding
$10,000 in reserves: - CORRECT ANSWER✔✔The bank is meeting its reserve requirement.
When a bank loans out excess reserves, the money supply: - CORRECT ANSWER✔✔Increases.
It does not increase, decrease, or increaser decrease depending on how the loan is used.
If the reserve ratio is 0.50, the money multiplier is: - CORRECT ANSWER✔✔2.0
If the Federal Reserve raises the interest rate it pays on reserves, banks: - CORRECT
ANSWER✔✔They will want to hold more reserves and reduce lending
Which institutions can create money? - CORRECT ANSWER✔✔The Fed with an assist from banks
Which of the following illustrate(s) economic growth? - CORRECT ANSWER✔✔PPC shifts
outward
Better technology would: - CORRECT ANSWER✔✔Lead to economic growth and shift the LAS to
the right.
It is not shift the PPC outward.
Which of the following factors will likely increase economic growth? - CORRECT ANSWER✔✔a
higher labor force participation rate
Which of the following is most closely associated with the Classical growth model? - CORRECT
ANSWER✔✔The industrial revolution.
It is not the development of inegration, the invention of diesel engines or Plat
