AP®︎ Macroeconomics: Topic 4.3 Practice Test
Prepare for your quiz, test, or the AP exam with focused practice questions on Topic 4.3 of AP Macroeconomics – Definition, Measurement, and Functions of Money.
Questions List
Topic 4.3
Question 1 Easy
This question tests the following: MEA-3.C.1
Which type of money has no intrinsic value but is used as currency?
What You’re Being Tested On:
Explore the learning objectives taken directly from the College Board’s AP® Macroeconomics Curriculum. Ensure you’re prepared for the exact topics covered on the AP® exam, in-class tests, and quizzes, and gain confidence in your mastery of the material.
Topic 4.3: Definition, Measurement, and Functions of Money
Learning Objective: MEA-3.C
a. Define money and its functions. b. Calculate (using data as appropriate) measures of money.
Essential Knowledge: MEA-3.C.1
Money is any asset that is accepted as a means of payment.
Essential Knowledge: MEA-3.C.2
Money serves as a medium of exchange, unit of account, and store of value.
Essential Knowledge: MEA-3.C.3
The money supply is measured using monetary aggregates designated as M1 and M2.
Essential Knowledge: MEA-3.C.4
The monetary base (often labeled as M0 or MB) includes currency in circulation and bank reserves.
