Money, the Fed, and Banking - Assessment Reveiw

_____________ is money by government decree, has no alternative value

• Gold standard

• Specie

• Barter

• Fiat money

__________ is a U.S. government institution that provides insurance on depositor's accounts

• Congress

• Department of the Interior

• FDIC

• Department of Homeland Security

Which is a good synonym for the word barter in the term barter economy?

• trade

• fiat

• monetary

• specie

"The Fed" refers to the....

• Federal Bureau of Investigation

• Federal Government

• Federal Reserve

• Federal Income Tax

Fee charged to borrow money

• Inflation
• Interest
• Discount rate
• Reserve requirement

Medium of exchange:

• Money is accepted in exchange for goods/services

• Money is a measurement of value

• Money can maintain value over time

Store of Value:

• Money can maintain value over time

• Money is a measurement of value

• Money is accepted in exchange for goods/services

What is the primary way banks earn a profit?

• Charging fees for services

• Borrowing money from the Fed

• Selling Piggy Banks

• Collecting interest on loans made to customers

__________ is a U.S. government institution that provides insurance on depositor's accounts

• Congress

• Department of the Interior

• FDIC

• Department of Homeland Security

Which is a main goal of the Federal Reserve?

• Create a high level of inflation

• Create a stable, healthy economy

• Print currency for American citizens

• Develop new laws for the United States