Monetary and Fiscal Policy Test Review

What is medium of exchange?

• a means of payment

• legal tender

• gives value to object

• M1

Which is an example of representative money?

• diamonds

• checks

• a $50 bill

• a fur coat

Comparing price tags at different stores is using money as a

• store of value

• bartering

• medium of exchange

• unit of account

Which of the following is NOT a function of our money

• buys stuff

• holds value

• gives value to objects

• is in limited supply

Who makes sure bank customers do not lose their money if a bank fails

• the FED

• FDIC

• President and Congress

• SEC

roman coins are an example of which characteristic of money?

• durability

• uniformity

• acceptability

• divisibility

Houston is in the ________ district

• San Antonio

• Dallas

• Houston

• El Paso

Which is NOT a tool of monetary policy

• open market operations

• tax policies

• reserve requirement

• discount rate

when banks borrow money from the FED, their reserves

• increase

• decrease

__________ the reserve requirement will decrease the money supply

• increase

• decrease