Money and Banking 3

During periods of inflation, money does not function well as ___________

• Standard of Value

• Medium of Exchange

• Store of Value

• Commodity money

When Mr. Moore gets his paycheck, he knows he doesn't have to spend it all at once because money is

• Standard of Value

• Medium of Exchange

• Store of Value

• Representative money

Coins and paper money in people's pockets are ________________.

• included in both M1 and M2.

• included in M2 but not in M1.

• included in M1 but not in M2.

• excluded from M1 and M2.

What does ATM stand for

• Automatic Teller Machine
• Automatic Token Money
• Automatic Teller Money
• Automatic Teller Man

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

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

Expenses that do not change every month, such as rent

• Variable Expenses
• Static Expenses
• Fixed Expenses
• Never Change Expenses

Expenses that can or go up or down each month

• Merry-go-round Expenses
• Fixed Expenses
• Shifty Expenses
• Variable Expenses

Interest earned on both principal and previous interest earnings

• Special Interest
• Complex Interest
• Complicated Interest
• Compound Interest