ECON 2030 FINAL EXAM PROFESSIONAL
EXAMPREP 2026 TESTED QUESTIONS AND
SOLUTIONS FULL REVIEW GRADED A+
◉ 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. Answer: A) the
value of goods, services, and resources exported is less than the
value
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..
Answer: 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.
Answer: 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.. Answer: 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.. Answer: 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
A) setting the reserve requirements.
B) controlling the money supply.
C) being the bankers' bank.
D) providing for check clearing and collection.. Answer: 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.. Answer: 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
EXAMPREP 2026 TESTED QUESTIONS AND
SOLUTIONS FULL REVIEW GRADED A+
◉ 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. Answer: A) the
value of goods, services, and resources exported is less than the
value
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..
Answer: 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.
Answer: 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.. Answer: 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.. Answer: 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
A) setting the reserve requirements.
B) controlling the money supply.
C) being the bankers' bank.
D) providing for check clearing and collection.. Answer: 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.. Answer: 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
