ECON 2030 FINAL EXAM QUESTIONS
AND ANSWERS 100% PASS 2026
EDITION
Net foreign factor income is ________.
A) the income people in a country receive from resources owned in foreign countries
B) the income people in foreign countries receive from resources owned domestically
C) the difference between the income people in a country receive from resources
owned in foreign countries and the income people in foreign countries receive
from resources owned domestically
D) the difference between the values of a country's exports and imports - ANS C) the
difference between the income people in a country receive from resources
owned in foreign countries and the income people in foreign countries receive
from resources owned domestically
If net exports is negative, it must be the case that ________.
A) the value of goods, services, and resources exported is less than the value
imported
B) the value of goods, services, and resources imported is less than the value
exported
C) more goods are being exported than imported
D) more goods are being imported than exported - ANS A) the value of goods, services, and
resources exported is less than the value
1
@2026 EDITION ALLRIGHTS RESERVED
,imported
The M2 measure of money consists of the sum of
A) savings deposits, small time deposits, and money market mutual funds.
B) M1, checking and savings deposits, and currency.
C) M1, savings deposits, small time deposits, and money market mutual funds.
D) currency, checking and savings deposits, and small time deposits. - ANS C) M1, savings
deposits, small time deposits, and money market mutual funds.
The Federal Reserve System consists of which of the following? A) Federal Deposit Insurance
Corporation and Controller of the Currency
B) U.S. Treasury Department and Bureau of Engraving and Printing
C) Board of Governors and the 12 Federal Reserve Banks
D) Federal Open Market Committee and Office of Thrift Supervision - ANS C) Board of
Governors and the 12 Federal Reserve Banks
Traditionally, the Federal Reserve can give emergency loans only to
A) manufacturing firms.
C) securities firms.
B) commercial banks.
D) investment banks. - ANS B) commercial banks
A bank's net worth is equal to its
A) assets minus its liabilities.
C) assets plus its liabilities.
B) profits plus its assets.
D) liabilities minus its assets. - ANS A) assets minus its liabilities
When the Fed acts as a "lender of last resort," like it did in the financial crisis of 2007-2008, it is
performing its role of
2
@2026 EDITION ALLRIGHTS RESERVED
, A) setting the reserve requirements.
B) controlling the money supply.
C) being the bankers' bank.
D) providing for check clearing and collection. - ANS B) controlling the money supply
Which of the following statements is true?
A) The prime rate is often the same as the discount rate.
B) The federal funds rate is higher than the prime rate.
C) The federal funds rate and the prime rate are often the same.
D) The prime rate is higher than the federal funds rate. - ANS D) The prime rate is higher than
the federal funds rate.
9) The interest rate that banks use as a reference point for interest rates on a wide range of 9)
loans to businesses and individuals is the ________.
A) term auction rate
C) real interest rate
B) prime rate
D) discount rate - ANS B) prime rate
10) If the federal funds rate ________.
A) decreases, the prime rate will not change
B) increases, the prime rate will increase
C) decreases, the prime rate will increase
D) increases, the prime rate will decrease - ANS B) increases, the prime rate will increase
11) The Federal Reserve can increase aggregate demand by ________.
A) reducing the discount rate
B) reducing the money supply
C) raising the reserve requirement
3
@2026 EDITION ALLRIGHTS RESERVED
AND ANSWERS 100% PASS 2026
EDITION
Net foreign factor income is ________.
A) the income people in a country receive from resources owned in foreign countries
B) the income people in foreign countries receive from resources owned domestically
C) the difference between the income people in a country receive from resources
owned in foreign countries and the income people in foreign countries receive
from resources owned domestically
D) the difference between the values of a country's exports and imports - ANS C) the
difference between the income people in a country receive from resources
owned in foreign countries and the income people in foreign countries receive
from resources owned domestically
If net exports is negative, it must be the case that ________.
A) the value of goods, services, and resources exported is less than the value
imported
B) the value of goods, services, and resources imported is less than the value
exported
C) more goods are being exported than imported
D) more goods are being imported than exported - ANS A) the value of goods, services, and
resources exported is less than the value
1
@2026 EDITION ALLRIGHTS RESERVED
,imported
The M2 measure of money consists of the sum of
A) savings deposits, small time deposits, and money market mutual funds.
B) M1, checking and savings deposits, and currency.
C) M1, savings deposits, small time deposits, and money market mutual funds.
D) currency, checking and savings deposits, and small time deposits. - ANS C) M1, savings
deposits, small time deposits, and money market mutual funds.
The Federal Reserve System consists of which of the following? A) Federal Deposit Insurance
Corporation and Controller of the Currency
B) U.S. Treasury Department and Bureau of Engraving and Printing
C) Board of Governors and the 12 Federal Reserve Banks
D) Federal Open Market Committee and Office of Thrift Supervision - ANS C) Board of
Governors and the 12 Federal Reserve Banks
Traditionally, the Federal Reserve can give emergency loans only to
A) manufacturing firms.
C) securities firms.
B) commercial banks.
D) investment banks. - ANS B) commercial banks
A bank's net worth is equal to its
A) assets minus its liabilities.
C) assets plus its liabilities.
B) profits plus its assets.
D) liabilities minus its assets. - ANS A) assets minus its liabilities
When the Fed acts as a "lender of last resort," like it did in the financial crisis of 2007-2008, it is
performing its role of
2
@2026 EDITION ALLRIGHTS RESERVED
, A) setting the reserve requirements.
B) controlling the money supply.
C) being the bankers' bank.
D) providing for check clearing and collection. - ANS B) controlling the money supply
Which of the following statements is true?
A) The prime rate is often the same as the discount rate.
B) The federal funds rate is higher than the prime rate.
C) The federal funds rate and the prime rate are often the same.
D) The prime rate is higher than the federal funds rate. - ANS D) The prime rate is higher than
the federal funds rate.
9) The interest rate that banks use as a reference point for interest rates on a wide range of 9)
loans to businesses and individuals is the ________.
A) term auction rate
C) real interest rate
B) prime rate
D) discount rate - ANS B) prime rate
10) If the federal funds rate ________.
A) decreases, the prime rate will not change
B) increases, the prime rate will increase
C) decreases, the prime rate will increase
D) increases, the prime rate will decrease - ANS B) increases, the prime rate will increase
11) The Federal Reserve can increase aggregate demand by ________.
A) reducing the discount rate
B) reducing the money supply
C) raising the reserve requirement
3
@2026 EDITION ALLRIGHTS RESERVED
