Ch. 9 Monetary Policy Quiz

Multiple Choice

True or False: Despite the rise of the internet and e-commerce, the majority of US currency is still transferred via paper notes - physical money exchanged by hand. 

• True

• False

Multiple Choice

Acceptable

• It must last

• Break into smaller parts

• Be able to carry around

• People must be willing to take it in a trade.

Multiple Choice

Portable

• Recognizeable and Measurable

• Be able to carry around

• Break into smaller parts

• It must last

Multiple Choice

Uniform

• It must last

• Retains value over time, supply is controlled

• Recognizeable and Measurable

• Break into smaller parts

Multiple Choice

Divisible

• Break into smaller parts

• it must last

• Recognizeable and Measurable

• Be able to carry it around

Multiple Choice

Durable

• Retains value over time, supply is controlled

• it must last

• Be able to carry around

• Break into smaller parts

Multiple Choice

Limited Supply/Stable

• Retains value over time, supply is controlled

• Recognizable

• it must last

• portable

Multiple Choice

Who makes all the decisions in the Federal Reserve?

• Open Market Committee

• The 12 Federal Reserve Banks

• The Federal Advisory Council

• The Board of Governors

Multiple Choice

What is the main purpose of the FDIC?

• To make sure that the government has enough gold to cover its expenses

• To make sure that banks charge a fair amount of interest on loans

• To make sure that customers do not lose money if a bank fails

• To make sure banks do not fail

Multiple Choice

Our currency, the US Dollar is currently what type of money?

• Representative Money

• Commodity-Backed Money

• Fiat Money

• Commodity Money

Multiple Choice

Functions of the Federal Reserve include all of the following EXCEPT

• Supervising member banks

• Preparing the federal budget and setting tax rates

• Printing currency through the US Treasury

• Regulating the nation’s money supply

Multiple Choice

Which of the following is a limitation of Bartering?

• Could not always save a surplus and trade at later dates

• Hard to determine the worth of goods and services.

• Each person had to have exactly what the other person wanted

• All of the Above

Multiple Choice

An item that has value of its own and that is also used as money is

• Discount money

• Commodity money

• Reserve money

• Fiat Money

Multiple Choice

Fiat money is

• Money in checking accounts

• Money that has intrinsic value on its own

• Specifically created from the Federal Reserve

• Money that only has value because the government says it does

Multiple Choice

Anything that people commonly accept as payment for goods and services is called.

• Credit

• Collateral

• Money

• Interest