Economics Unit 4 Test

Front

Which of the following is a function of money? Options: interest-bearing instrument, checkable deposits, medium of exchange, stability of value

Back

medium of exchange

Front

Which institution makes all of the coins in the United States? Options: Bureau of the Mint, Federal Reserve, Bureau of Engraving and Printing, Federal Deposit Insurance Corporation

Back

Bureau of the Mint

Front

The FDIC was created to

Back

increase depositors' confidence in the banking system.

Front

M2 is

Back

a broader definition of the money supply than M1.

Front

It is important for money to be durable because

Back

it must be stable in value.

Front

The Federal Reserve System was established to

Back

ensure a safe and uniform currency.

Front

Near moneys include: stocks, bonds, time (certificate) deposits, property

Back

time (certificate) deposits

Front

Representative money is money that is

Back

backed by a valuable item, such as gold.

Front

As a form of money, the items in the illustration lack the characteristic of

Back

divisibility

Front

If you were to arrange this table as a circle graph by number of institutions, the second largest piece would represent institutions with what amount of total assets? Options: $50 to $100 million, $25 to $50 million, Less than $25 million, $100 to $300 million

Back

$50 to $100 million