2023 Econ U4 Fiscal & Monetary Policy

Which are the main functions of the FED?

• Supply money to society

• Influence the interest rates

• Monitor member banks

• All of the above

One characteristic of the Federal Reserve is that it is...

• available for consumer lending.

• allowed satellite locations.

• a system of decentralized banks.

• All of the above.

The Federal Reserve is responsible for requesting

• loans

• the printing of currency.

• presidential policy.

• All of the above.

One characteristic of the FED is

• it has 12 districts nationwide.

• it has 9 districts nationwide.

• it is centralized and has no districts.

• None of the above.

How does the Federal Reserve Chair get his or her job?

• Appointed by the President.

• Elections are held.

• He or she is the senior-most member of the Board.

• None of the above.

Which of the following is (are) NOT a Function(s) of Money?

• Medium of exchange

• Standard of measure

• Store of value

• Official currecy

• Barter commodity

An example of commodity money is

• Gold coin.

• U.S. Dollar.

• Fish for trade.

• All of the above.

Money that we have faith in, but NO value in itself is known as

• fiat money.

• representative money.

• fake money.

• funny money.

Money that is backed up by the government's "word" is called...

• currency mandate.

• fiat money.

• credit card.

The barter economic system is inefficient because

• there is no money involved.

• one is limited to the supply and demand of particular stuff.

• This is a fake system.

• This statement is false, barter systems rock!