Exam 1: Why Study Money, banking, and Financial Markets

Nominal GDP is output measured in ________ prices while real GDP is output measured in ________ prices.

An increase in interest rates might ________ saving because more can be earned in interest income.

The delivery of financial services electronically is called

Markets in which funds are transferred from those who have excess funds available to those who have a shortage of available funds are called

Everything else constant,a stronger dollar will mean that

Financial markets promote economic efficiency by

If the price level increases from 200 in year 1 to 220 in year 2,the rate of inflation from year 1 to year 2 is

When stock prices fall

The price of one country's currency in terms of another country's currency is called the

Sustained downward movements in the business cycle are referred to as

A financial crisis is

Poorly performing financial markets can be the cause of

If your nominal income in 2002 was $50,000,and prices doubled between 2002 and 2011,to have the same real income,your nominal income in 2011 must be

Financial institutions that accept deposits and make loans are called

If nominal GDP in 2001 is $9 trillion,and 2001 real GDP in 1996 prices is $6 trillion,the GDP deflator price index is

Everything else held constant,Americans who love French wine benefit most from

The Dow reached a peak of over 11,000 before the collapse of the ________ bubble in 2000.

The organization responsible for the conduct of monetary policy in the United States is the

________ policy involves decisions about government spending and taxation.

If an economy has aggregate output of $20 trillion,then aggregate income is