RLE 83 Final Prep Ch 2

Front

Money can be defined with all of the following meanings except as a: means to store wealth, standard of value, medium of exchange, value unto itself

Back

value unto itself

Front

Which of the following statements is true? Since there is no substitute for money, the Fed has total control over our economy. , Lower interest rates create less loan activity. , Economic stability is linked to the supply and costs of money. , Money once spent must be replaced by the Fed.

Back

Economic stability is linked to the supply and costs of money.

Front

All of the following responsibilities are functions of the Fed except to: buy and sell government securities; supervise Truth-In-Lending; insure bank deposits; establish the bank reserve requirements.

Back

insure bank deposits.

Front

Of the following types of real estate loans, commercial banks are most interested in: unsecured loans, conventional single-family loans, government-insured single-family loans, interim loans.

Back

interim loans.

Front

All of the following characteristics describe money except: means of exchange, means of storing purchasing power, standard of value.

Back

item of intrinsic value.

Front

Under our monetary system, dollars are backed by

Back

public confidence.

Front

Increasing the money supply should

Back

encourage construction.

Front

All of the following activities are included in the Fed’s operations except: supervising the Truth-in-Lending Act, establishing mortgage interest rates, establishing bank reserve requirements.

Back

issuing new currency.

Front

The Fed acts to manage our monetary policy by

Back

manipulating the interest rates.

Front

Which of these government policies should act to slow inflation: Reducing bank reserve requirements , Reducing the Fed discount rate , Increasing the money supply , Selling government securities

Back

Selling government securities