Money, Banking, & Monetary Policy

Which of these items are considered commodities?

• oil

• water

• agricultural crops

• precious metals like gold

When measuring the benefit provided by a good or service, this can be identified as

• economic value

• intrinsic value

• opportunity cost

• subjective value

Value that is based on an opinion of a person, society, etc. is what type of value?

• economic value

• intrinsic value

• subjective value

• speculative value

Intrinsic value is best defined by which of the follow?

• value that is measured by an opinion

• value that is measured by the thought that the price of the good will rise in the future

• a general statement on the usefulness of a good or service

• value that is based on scarcity, usefulness, and the labor and materials that went into production

When people or groups purchase items with the thought that the value will increase, items like oil or gold, what type of value is this describing?

• speculative value

• intrinsic value

• subjective value

• objective value

Which of these are functions of money?

• medium of exchange that allows the trade of goods and services

• holds value over time

• standard of value that allows comparison of the value of goods related to one another

• used as the only means of trade between nations

A type of money that is backed by a material, such as gold, is referred to as

• certificate money

• representative money

• fiat money

• commodity money

Commodity money can be best described as money that is

• backed up by a valuable material

• valuable based on the material that the money is made from

• used to purchase valuable materials

• valuable because a government says it is and people accept that it is valuable

Money in the United States is which type of money?

• fiat money

• representative money

• commodity money

• speculative money

The Federal Reserve controls monetary policy in the United States, trying to control

• inflation, or money losing its purchasing power

• deflation, or money becoming more valuable

• money supply, the amount of money available in the economy

• the number of banking institutions in the nation