Unit 7 Test: Fiscal, Monetary, Fed, Money

Front

A saving account in a bank represents the function of money:

Back

Store of value

Front

What function of money does the picture represent?

Back

Medium of Exchange

Front

What function of money does the picture represent?

Back

Unit of Account

Front

What function of money does the picture represent?

Back

Store of Value

Front

The Fed is comprised of how many regional banks?

Back

12

Front

The Federal Open Market Committee is made up of five regional bank presidents and:

Back

the Board of Governors

Front

This is the name for when the Federal Reserve buys or sells treasury bonds:

Back

Open market operations

Front

The unemployment rate in Hamsterville is low and inflation is high. Which monetary policy could be used to close the gap? Options: Increase Interest on Reserves, Decrease interest on Reserves, Increase the discount rate, Decrease government spending

Back

Increase Interest on Reserves

Front

What is the name of the interest rate this bank will be charged for a loan from the Federal Reserve?

Back

The discount rate

Front

Monetary policy refers to:

Back

How government regulates the amount of money in circulation