Chapter 10: Money and Banking

what are 2 characteristics dollars must have to be acceptable in our society ? 

• green and gold
• portable and durable
• old and new
• residue from filthy places 

What is a bank's primary source of income ? 

• the Fed
• China
• interest
• housing market

Money is functioning as a standard of value when you

• Use it to compare two houses that are different prices.

• Buy jeans at the mall.

• Buy a rare baseball card that you expect will increase in value.

• Trade a cup of sugar for two eggs.

When money is used to acquire goods and services, it is functioning as a

• Medium of exchange.

• Store of value.

• Standard of account.

• Equation of value.

An essential function for a bank is to

• Maximize its assets.

• Create money through lending.

• Lend all of its deposits.

• Minimize its reserve ratio.

The exchange of goods without the exchange of money

• trade
• Barter System
• credit cards
• checking

anything that is used to determine value during the exchange of goods and services.

• Store of Value
• Unit of Account
• Medium of Exchange
• Barter System

When people can take their money with them easily

• Portability
• Uniformity
• Durability
• Divisibility

Money can withstand physical wear and tear

• Uniformity
• Durability
• Divisibility
• Portability

Which of the following are banking services

• Issuing credit cards
• Issuing loans
• storing money
• all of the above