MACROECONOMICS PRINCIPLES FOR A
CHANGING WORLD 6TH EDITION ERIC
CHIANG TEST BANK ALL CHAPTERS 100%
ORIGINAL VERIFIED A+ COMPREHENSIVE
TEST PAPER 2026 COMPLETE ANSWERS
ACCURATE
⫸ What are the three characteristics of Money? Answer: medium of
exchange, unit of account, store of value
⫸ What are the three motives for money's demand? Answer:
transactions, precautionary, speculative
⫸ What is M1 money? Answer: cash of checkable deposits and
currency (highest liquidity)
⫸ What is M2 money? Answer: M1 money + small denomination time
deposits & retail money market funds
⫸ What is liquidity? Answer: the ease with which an asset can be
converted into the economy's medium of exchange
⫸ What are countries with main central banks and currencies? Answer:
China, United Kingdom, Japan, European Union, USA
, ⫸ What is depository banking? Answer: Depository banking refers to
financial institutions that accept deposits, such as checking and savings
accounts, from the public.
⫸ What are examples of depository banks? Answer: Commercial banks,
credit unions, savings and loans associations
⫸ What is fiat money? Answer: money by government decree (there is
nothing tangible supporting it)
⫸ What is shadow banking? Answer: Activities of nonfinancial service
firms that perform banking services
⫸ What are examples of shadow banks? Answer: investment banks,
pension funds, hedge funds, insurance companies
⫸ What are the three main credit rating agencies in the US? Answer:
Fitch, Standard & Poor's, Moody's
⫸ Who are the financial regulators in the US? Answer: Federal Reserve
(FRB), Federal Deposit Insurance Corporation (FDIC), Securities and
Exchange Commission (SEC), and Consumer Financial Protection
Bureau (CFPB)
CHANGING WORLD 6TH EDITION ERIC
CHIANG TEST BANK ALL CHAPTERS 100%
ORIGINAL VERIFIED A+ COMPREHENSIVE
TEST PAPER 2026 COMPLETE ANSWERS
ACCURATE
⫸ What are the three characteristics of Money? Answer: medium of
exchange, unit of account, store of value
⫸ What are the three motives for money's demand? Answer:
transactions, precautionary, speculative
⫸ What is M1 money? Answer: cash of checkable deposits and
currency (highest liquidity)
⫸ What is M2 money? Answer: M1 money + small denomination time
deposits & retail money market funds
⫸ What is liquidity? Answer: the ease with which an asset can be
converted into the economy's medium of exchange
⫸ What are countries with main central banks and currencies? Answer:
China, United Kingdom, Japan, European Union, USA
, ⫸ What is depository banking? Answer: Depository banking refers to
financial institutions that accept deposits, such as checking and savings
accounts, from the public.
⫸ What are examples of depository banks? Answer: Commercial banks,
credit unions, savings and loans associations
⫸ What is fiat money? Answer: money by government decree (there is
nothing tangible supporting it)
⫸ What is shadow banking? Answer: Activities of nonfinancial service
firms that perform banking services
⫸ What are examples of shadow banks? Answer: investment banks,
pension funds, hedge funds, insurance companies
⫸ What are the three main credit rating agencies in the US? Answer:
Fitch, Standard & Poor's, Moody's
⫸ Who are the financial regulators in the US? Answer: Federal Reserve
(FRB), Federal Deposit Insurance Corporation (FDIC), Securities and
Exchange Commission (SEC), and Consumer Financial Protection
Bureau (CFPB)
