Principles of Macroeconomics Ben Bernanke 5th Edition – Test Bank

Principles of Macroeconomics Ben Bernanke 5th Edition – Test Bank

Chapter 04 Testbank

1. Saving equals:

A. current spending minus current income

B. wealth minus assets

C. assets minus liabilities

D. current income minus spending on current needs

2. Vickie earns $1000 per week and spends $850 per week on living expenses, puts $50 in a saving account and buys $100 worth of shares in a stock mutual fund. Vickie’s saving is ____ and her saving rate is _____.

A. $50; 5.9%

B. $100; 10%

C. $100; 11.8%

D. $150; 15%

3. Assets less liabilities equals:

A. saving

B. investment

C. wealth

D. current income less spending on current needs

4. Which of the following is an asset of a family?

A. Student loan

B. Mortgage

C. Unpaid credit card balance

D. Stocks and bonds

5. Which of the following is a liability of a family?

A. Share of stock

B. A house

C. A car

D. Mortgage

6. Use the following table of Mary’s assets and liabilities to answer the question:

What is Mary’s wealth?

A. $105 000

B. $107 000

C. $111 000

D. $419 000

7. A measure defined at a point in time is called a ____ variable.

A. real

B. nominal

C. flow

D. stock