Economics 2nd Quarter Exam 2025

Front

What is the exchange of one person's goods or services for another's?

Back

barter

Front

In order for money to have value, it must have all of the following characteristics EXCEPT: portability, durability, divisibility, plentiful availability.

Back

plentiful availability.

Front

This is money that has another useful purpose.

Back

commodity

Front

The difference between representative money and fiat money is that

Back

representative money is backed by silver or gold; fiat money is not.

Front

Which of the following factors keeps a fiat money system functioning? less governmental intervention, a limited quantity of money, the availability of credit, increased federal reserves

Back

a limited quantity of money

Front

Legal tender refers to

Back

items that creditors must accept as payment.

Front

What is the Federal Reserve?

Back

Central bank of the U.S.

Front

If the Federal Reserve raises interest rates to combat rapid inflation, what might be a negative outcome?

Back

Unemployment rates would rise.

Front

Currency and coins in circulation + checking deposits + travelers checks:

Back

M1

Front

Which of the following would be included in M-2 but not M-1?
Options:
paper money,
traveler's checks,
savings accounts,
checking accounts

Back

savings accounts