Functions and Policies of Money

Front

What are the three main functions of money?

Back

Store of value, unit of account, medium of exchange

Front

Which type of money has value because the government states it is an acceptable means to pay off debts?

Back

Fiat money

Front

What is the term for paper or another object that represents an object of value such as gold/silver to be exchanged for goods or services?

Back

Representative money

Front

Which of the following is NOT a characteristic of money? Durability, Portability, Divisibility, Volatility

Back

Volatility

Front

What was one reason countries moved away from the gold standard?

Back

Production of goods and services exceeded the gold/silver backing

Front

What year was the Federal Reserve System established?

Back

1913

Front

How many regional Federal Reserve Banks are there in the United States?

Back

12

Front

What is the maximum term length for a member of the Federal Reserve's Board of Governors?

Back

14 years

Front

Which of the following is NOT one of the primary functions of the Federal Reserve? Conducting the nation's monetary policy, Promoting the stability of the financial system, Fostering payment and settlement system safety and efficiency

Back

Setting federal income tax rates

Front

Which of the following is considered the Fed's most frequently used tool for regulating money supply? Reserve requirements, Discount rates, Open market operations, Paying interest on bank reserves

Back

Open market operations