Money & Banking

What is US currency made of?

• Wood and glue

• Paper and thread

• Cotton and linen

• Gold and silver

Who actually produces US currency?

• US Mint

• Banks

• Congress

• States

Who controls the monetary policy of the United States?

• Federal Reserve

• Banks

• President

• Congress

Trading a good for a good is called

• to barter

• to negotiate

• to buy

• to fiat

Money acts as a store and measure of:

• value

• gold

• silver

• inflation

What was the problem with the GOLD STANDARD?

• Too limited

• Too portable

• Too divisible

• Too durable

The word "fiat" means:

• by decree

• by car

• by gold

• by debt

What is United States fiat currency backed by?

• Nothing but the "full faith and credit of the United States"

• More than 8,000 tonnes of gold bullion held in vaults

What does inflation do to existing money?

• Your money slowly loses value

• Your money gains value

• Your money stays the same

What is a result of deflation

• Money gains value

• Money loses value

• People spend more money

• People save more money