3 MICROECONOMIC DECISION MAKERS
EXAM LATEST 2026 WITH ACTUAL QUESTIONS
AND VERIFIED CORRECT ANSWERS GRADED
A+
◉Characteristics of Money (features an item must possess to act as
money) . Answer: Durability - lasts over a long period of time
Acceptability - must be valued & widely recognized
Scarcity - must have limited supply to maintain worth
Divisibility - must be divisible ($100 -> 2x$50)
Uniformity - all $100 notes must be exactly the same
Portability - must be easy to carry or conceal
◉Central vs Commercial Banks . Answer: central - only institution that
can print money, bank of the government, only 1 per country/group of
countries, banker to commercial banks, manage foreign reserves,
conduct monetary policy
commercial - financial intermediates, means by which monetary policy
is transmitted to economy, enable customers to make payments
, ◉lender of last resort . Answer: central bank giving loans to commercial
banks to stop bankruptcy
◉standing order . Answer: a way for a costumer to set up a regular, fixed
payment from their bank accounts
◉debit vs credit . Answer: debit - takes money straight from your bank
account
credit - let you borrow to pay back later, extra charges may be faced if
not paid back in time
◉2 types of income . Answer: discretionary - left after paying fixed
costs eg. rent, mortgages
disposable - left after paying income taxes and any other required
payments to gov
◉high vs low income spending, borrowing, saving
most -> least . Answer: high - 1. saving 2. spending 3. borrowing
low - 1. spending 2. borrowing 3. saving
◉interest rate ↑ affect on spending, borrowing, saving . Answer:
spending ↓, saving ↑, borrowing ↓
EXAM LATEST 2026 WITH ACTUAL QUESTIONS
AND VERIFIED CORRECT ANSWERS GRADED
A+
◉Characteristics of Money (features an item must possess to act as
money) . Answer: Durability - lasts over a long period of time
Acceptability - must be valued & widely recognized
Scarcity - must have limited supply to maintain worth
Divisibility - must be divisible ($100 -> 2x$50)
Uniformity - all $100 notes must be exactly the same
Portability - must be easy to carry or conceal
◉Central vs Commercial Banks . Answer: central - only institution that
can print money, bank of the government, only 1 per country/group of
countries, banker to commercial banks, manage foreign reserves,
conduct monetary policy
commercial - financial intermediates, means by which monetary policy
is transmitted to economy, enable customers to make payments
, ◉lender of last resort . Answer: central bank giving loans to commercial
banks to stop bankruptcy
◉standing order . Answer: a way for a costumer to set up a regular, fixed
payment from their bank accounts
◉debit vs credit . Answer: debit - takes money straight from your bank
account
credit - let you borrow to pay back later, extra charges may be faced if
not paid back in time
◉2 types of income . Answer: discretionary - left after paying fixed
costs eg. rent, mortgages
disposable - left after paying income taxes and any other required
payments to gov
◉high vs low income spending, borrowing, saving
most -> least . Answer: high - 1. saving 2. spending 3. borrowing
low - 1. spending 2. borrowing 3. saving
◉interest rate ↑ affect on spending, borrowing, saving . Answer:
spending ↓, saving ↑, borrowing ↓
