ECON 2102 Final Exam Questions and Answers Already Passed Latest Update 2025-2026
money - Answers the set of assets in an economy that people regularly use to buy goods and
services
medium of exchange - Answers an item that buyers give to sellers when they want to purchase
goods and services
unit of account - Answers the yardstick people use to post prices and record debts)
store of value - Answers an item that people can use to transfer purchasing power from the
present to the future
liquidity - Answers the ease with which an asset can be converted into the economy's medium
of exchange
commodity money - Answers money that takes the form of a commodity with intrinsic value
fiat money - Answers money without intrinsic value that is used as money by government
decree
currency - Answers the paper bills and coins in the hands of the public
demand deposits - Answers balances in bank accounts that depositors can access on demand
by writing a check
Federal Reserve - Answers the central bank of the United States
central bank - Answers an institution designed to oversee the banking system and regulate
thequantity of money in the economy
money supply - Answers the quantity of money available in the economy
monetary policy - Answers the setting of the money supply by policymakers in the central bank
reserves - Answers deposits that banks have received but have not loaned out
fractional-reserve banking - Answers a banking system in which banks hold only a fraction
ofdeposits as reserves
reserve ratio - Answers the fraction of deposits that banks hold as reserves
money multiplier - Answers the amount of money that results from each dollar of reserves
bank capital - Answers the resources a bank's owners have put into the institution
leverage - Answers the use of borrowed money to supplement existing funds for investment
purposes
money - Answers the set of assets in an economy that people regularly use to buy goods and
services
medium of exchange - Answers an item that buyers give to sellers when they want to purchase
goods and services
unit of account - Answers the yardstick people use to post prices and record debts)
store of value - Answers an item that people can use to transfer purchasing power from the
present to the future
liquidity - Answers the ease with which an asset can be converted into the economy's medium
of exchange
commodity money - Answers money that takes the form of a commodity with intrinsic value
fiat money - Answers money without intrinsic value that is used as money by government
decree
currency - Answers the paper bills and coins in the hands of the public
demand deposits - Answers balances in bank accounts that depositors can access on demand
by writing a check
Federal Reserve - Answers the central bank of the United States
central bank - Answers an institution designed to oversee the banking system and regulate
thequantity of money in the economy
money supply - Answers the quantity of money available in the economy
monetary policy - Answers the setting of the money supply by policymakers in the central bank
reserves - Answers deposits that banks have received but have not loaned out
fractional-reserve banking - Answers a banking system in which banks hold only a fraction
ofdeposits as reserves
reserve ratio - Answers the fraction of deposits that banks hold as reserves
money multiplier - Answers the amount of money that results from each dollar of reserves
bank capital - Answers the resources a bank's owners have put into the institution
leverage - Answers the use of borrowed money to supplement existing funds for investment
purposes
