Money and Monetary Policy

This term refers to the ease with which you can convert an asset to cash with little or no loss of purchasing power.

• legal tender
• acceptability
• liquidity
• uniformity

This classification of money includes coins, paper money, checkable deposits.

• M1
• M2
• M3

This characteristic of money refers to the ability to carry it with you---lightweight and easy to transport.

• portability
• uniformity
• acceptability
• stability

This function of money allows people to transfer purchasing power from the present to the future.

• medium of exchange
• unit of account
• store of value
• liquidity

Our current money is _______ money. Meaning that it has value because the government has ordered that it is an acceptable means to pay debts.

• Commodity
• Fiat
• Representative
• Funny

Anna recently celebrated her 18th birthday. in many of her birthday cards, she found slips of paper from the US government promising to repay a loan at a fixed interest rate. These slips of paper are known as

• stocks

• bank loans

• shares

• bonds

A stock is

• a claim of ownership in a business

• a certificate of independence

• traded in a closed market system

• all the above

The is the price, calculated as a percentage, of the amount borrowed, charged by lenders to borrowers for the use of their savings for one year.

• Interest Rate
• Savings Rate
• Borrow Rate
• Percentage Rate

A _________ is a requirement to pay money in the future.

• Liability
• Financial Risk
• Diversification
• Default

The exchange of goods and services without using money is known as...

• near money.
• bartering.
• double coincidence of wants. 
• fiat money.