Main content

Financial sector

AP Macro: MEA (BI), MEA‑3 (EU), MKT (BI), MKT‑3 (EU), MKT‑4 (EU), POL (BI), POL‑1 (EU), POL‑2 (EU)
AP Macro: MEA (BI), MEA‑3 (EU), MEA‑3.A (LO), MEA‑3.A.1 (EK), MEA‑3.A.2 (EK), MEA‑3.A.3 (EK), MEA‑3.A.4 (EK)
Learn
Introduction to interestIntroduction to bondsRelationship between bond prices and interest ratesWhat it means to buy a company's stockBonds vs. stocksLesson Summary: Financial assets
Practice
Financial assetsGet 3 of 4 questions to level up!
AP Macro: MEA (BI), MEA‑3 (EU), MEA‑3.B (LO), MEA‑3.B.1 (EK), MEA‑3.B.2 (EK), MEA‑3.B.3 (EK)
Learn
Real and nominal returnCalculating real return in last year dollarsNominal interest, real interest, and inflation calculationsLesson summary: nominal vs. real interest rates
Practice
Nominal vs. real interest ratesGet 3 of 4 questions to level up!
AP Macro: MEA (BI), MEA‑3 (EU), MEA‑3.C (LO), MEA‑3.C.1 (EK), MEA‑3.C.2 (EK), MEA‑3.C.3 (EK), MEA‑3.C.4 (EK)
Learn
Money supply: M0, M1, and M2Functions of moneyWhen the functions of money break down: HyperinflationCommodity money vs. Fiat moneyLesson summary: definition, measurement, and functions of money
Practice
AP Macro: POL (BI), POL‑2 (EU), POL‑2.A (LO), POL‑2.A.1 (EK), POL‑2.A.2 (EK), POL‑2.A.3 (EK), POL‑2.A.4 (EK), POL‑2.A.5 (EK), POL‑2.A.6 (EK), POL‑2.A.7 (EK), POL‑2.A.8 (EK)
Learn
Bank balance sheets in a fractional reserve systemMoney creation in a fractional reserve systemBank balance sheet free response questionLesson summary: banking and the expansion of the money supply
AP Macro: MKT (BI), MKT‑3 (EU), MKT‑3.A (LO), MKT‑3.A.1 (EK), MKT‑3.A.2 (EK), MKT‑3.B (LO), MKT‑3.B.1 (EK), MKT‑3.C (LO), MKT‑3.C.1 (EK), MKT‑3.D (LO), MKT‑3.D.1 (EK)
Learn
Demand curve for money in the money marketEquilibrium nominal interest rates in the money market Lesson summary: the money market
Practice
The money market: foundational conceptsGet 3 of 4 questions to level up!
Changes in the money marketGet 3 of 4 questions to level up!
AP Macro: POL (BI), POL‑1 (EU), POL‑1.D (LO), POL‑1.D.1 (EK), POL‑1.D.2 (EK), POL‑1.D.3 (EK), POL‑1.D.4 (EK), POL‑1.D.5 (EK), POL‑1.D.6 (EK), POL‑1.D.7 (EK), POL‑1.D.8 (EK), POL‑1.D.9 (EK), POL‑1.E (LO), POL‑1.E.1 (EK)
Learn
Monetary policy toolsLesson summary: monetary policy
Practice
Monetary policy: foundational conceptsGet 3 of 4 questions to level up!
AP Macro: MKT (BI), MKT‑4 (EU), MKT‑4.A (LO), MKT‑4.A.1 (EK), MKT‑4.A.2 (EK), MKT‑4.A.3 (EK), MKT‑4.B (LO), MKT‑4.B.1 (EK), MKT‑4.B.2 (EK), MKT‑4.C (LO), MKT‑4.C.1 (EK), MKT‑4.D (LO), MKT‑4.D.1 (EK), MKT‑4.E (LO), MKT‑4.E.1 (EK), MKT‑4.E.2 (EK)
Learn
Loanable funds market National savings and investmentLesson summary: the market for loanable funds
Practice
The market for loanable fundsGet 3 of 4 questions to level up!
Changes in the market for loanable fundsGet 5 of 7 questions to level up!

About this unit

In this unit, you'll learn about the financial sector and monetary policy. By knowing the definition of money and other financial assets, you'll be able to explore how the money market and the loanable funds market determine equilibrium nominal and real interest rates. Want to know more about central banks’ monetary policies and the effects of monetary policy actions? Explore this unit to find out!
AP® is a registered trademark of the College Board, which has not reviewed this resource.