Unit 8 Vocabulary- Monetary Policy

What function of money does the picture represent?

• Medium of Exchange

• Store of Value

• Unit of Account

• Acceptable

What function of money does the picture represents?

• Medium of Exchange

• Store of Value

• Unit of Account

• Durable

What function of money does the picture represents?

• Medium of Exchange

• Store of Value

• Unit of Account

• Stable

Last year, you sold your game system to your friend Jimmy for $125 in cash. You've been saving that money in a shoe box under your bed. You are saving the money to buy a new computer next year. What is the primary function of money exhibited here? 

• Medium of Exchange
• Store of Value
•  Unit of Account
• Stable 

At the grocery store last week, you purchased $94.25 worth of groceries. You paid for the groceries in cash. You gave the cashier four $20 bills, a $10 bill, three $1 bills, and a quarter. What is the primary function of money exhibited here? 

• Medium of Exchange
• Store of Value
• Unit of Account
• Acceptable 

At the grocery store last week, you had to decide whether to buy the 14.5 oz can of diced tomatoes for $1.75 or the 28 oz. can of diced tomatoes for $2.44. What is the primary function of money exhibited here? 

• Medium of Exchange
• Store of Value
• Unit of Account
• Divisible 

V1- When money is used to facilitate transactions between households, businesses, financial institutions, and governments

• Medium of exchange

• Store of value

• Unit of account

• Bartering

V2- When money is saved so that a similar amount of goods or services can be purchased in the future

• Medium of exchange

• Store of value

• Unit of account

• Savings account

V3- When money is used to compare the prices of goods and services

• Medium of exchange

• Store of value

• Unit of account

• Savings account

V-4 The Federal Reserve’s actions, as a central bank, to achieve three goals specified by Congress: maximum employment, stable prices, and moderate long-term interest rates in the United States

• Monetary policy

• Fiscal policy

• Reserve requirements

• Open Market Operations