Money, Banking, and Interest

The difference between representative money and fiat money is that

• representative money is worth more than fiat money.

• fiat money is counted in coins; representative money is counted in paper dollars.

• fiat money is more durable than representative money.

• representative money is backed by silver or gold, ; fiat money is not.

Which of the following is not a characteristic of money?

• Durability

• Portability

• Acceptability

• Responsibility

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

• portability
• uniformity
• acceptability
• stability

This is money that has another useful purpose.

• fiat money

• commodity-backed money

• debt money

• securities

A system that requires banks to hold reserves equal to some fraction (%) of their checkable deposits.

• Expansionary Effect on Economy of a Bank Deposit

• Fractional Reserve Banking System

• Bank Failures

• Money Multiplier

Amirah is going to college and will not be able to visit her home bank very often. She needs a way to access her money and track what she spends.

• personal loan
• debit card
• online banking

Tyler works part time. He wants to have money for college when he graduates so he won't have to borrow money.

• credit card
• debit card
• savings account

Jacayla wants to buy lunch for her friends but doesn't have any cash, and the restaurant will not take a check.

• debit card
• checking account
• online banking

An account you can deposit money into and then write checks or use debit card to withdraw money is known as a _________________ account.

• Money Market

• Checking

• Savings

• ATM

The Federal Reserve _______ banks to ensure the soundness of the banking system.

• regulates

• closes

• opens

• runs