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Quiz!
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It is important for money to be durable because.... |
it must be able to withstand the wear and tear of use |
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The Federal Reserve System was established to... |
control the amount of money in circulation |
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Near moneys include... |
time deposits |
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Representative money is money that is... |
backed by a valuable item, such a gold |
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What is the purpose of the Coinage Act of 1792? |
it established the dollar as the basic unit of currency for the United States |
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The Federal Reserve System can affect the money supply by... |
changing reserve requirements |
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The number of Federal Reserve district banks is... |
12 |
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Which type of institution must belong to the Federal Reserve? |
national banks |
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The main tool that the Fed uses to affect interest rates is... |
open market operations |
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When credit is inexpensive and easy to obtain, the Fed is probably using a... |
loose money policy |
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Deficit financing is... |
government overspending |
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Programs aimed only at people who are poor or disabled are known as... |
public assistance programs |
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Property taxes, which are based on a percentage of a home's value, are an example of... |
the ability to pay principle |
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Since the end of World War II, the size of the U.S. government has... |
grown much faster than the population |
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Single parents in need of aid to raise their young children may qualify for... |
Temporary Assistance to Needy Families |
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What is fiat money? |
money that has value because the government has established it as acceptable for payment of debts |
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What is money? |
anything customarily used as a medium of exchange, a unit of accounting, or a store of value |
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What is legal tender? |
money that by law must be accepted for payment of public and private debts |
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What is a barter? |
exchange of goods and services for other goods and services |
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What is commodity money? |
mediums of exchange that have value as goods aside from their value as money |
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A seller accepting money for a service reflects the use of money as... |
a medium of exchange |
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Money that is a measure of value function as... |
a unit of accounting |
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Placing money in a checking account is an example of using money as.... |
a store of value |
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Money that is durable... |
can withstand wear and tear |
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All money in the U.S. today is... |
fiat money |
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What is an automated teller machine? |
a unit that allows consumers to do their banking without the help of a teller |
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What is overdraft checking? |
account that allows a customer to write a check for more money than exists in the account |
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What is an electronic funds transfer? |
the transferring of funds from one bank account to another without any paper money changing hands |
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What are service charges? |
fees that banks charge on checking accounts |
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What is a monetary standard? |
way in which a nation assigns value to money |
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The phrase "not worth a Continental" referred to money issued during the... |
Revolutionary War |
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In which year did Congress pass the Coinage Act, establishing the dollar as the basic unit of currency for the nation? |
1792 |
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What may vary according to each state's banking laws? |
service charges |
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Electronic funds transfer was made possible by... |
the use of a computer |
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One drawback to electronic banking is lack of... |
privacy |
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What are near moneys? |
assets that can be turned into money relatively easy |
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What is a M2? |
a broader definition of the money supply |
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Most U.S. currency today is in the form of... |
Federal Reserve notes |
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The M1 definition of the money supply includes all currency, checkable deposits, and... |
traveler's checks |
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Explain Loose Money Policy |
-economy is "expansionary" |
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Explain Tight money policy |
-economy is 'contractionary" |
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Explain M1 |
includes all currencies, checkable deposits, and traveler's checks |
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Explain M2 |
includes all items in M1 and savings deposits, small denomination time deposits, money market deposit accounts, retail money market mutual funds and other more specialized accounts balances |
