Money Review

​The risk of ending up with the equivalent of a never-ending loan is one of the disadvantages of using

• Credit Card

• Savings Account

• Checking Account

​Which of the following terms best describes “greenbacks”?

• Legal tender

• Counterfeit currency

• Backed by gold

​The Federal Reserve is the nation’s _____ bank.

• Only

• First

• Oldest

• Central

​Certificates of Deposit (CDs) are a common investment because they ______.

• ​require only a small investment and pay high interest rates at maturity

• ​require only a small investment and have various maturity dates

• ​are issued and insured by commercial banks

• they are issued and insured by the U.S. government

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

• certificate money

• fiat money

• commodity money

• representative money

Commodity money can be best described as money that is

• backed up by a valuable material

• used to purchase valuable materials

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

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

Which among the following is considered to be the most liquid asset?

• gold

• land

• money

• Treasury bond

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

• Congress

• Department of the Interior

• Department of Homeland Security

• FDIC

Which of the following is one of the three functions of money?

• portability

• store of value

• divisibility

• scarcity

You can easily carry money in a pocket or a purse. This reflects what characteristic of money?

• durability

• divisibility

• portability

• legal tender