Banking and Money

Which of the following is considered to be money?

• Google Stock

• Bonds

• Credit Cards

• CHECKING ACCOUNT DEPOSITS

• Real Estate

Buying the latest compact disc with a $20 bill means money is functioning as a:

• medium of exchange

• store of value

• unit of account

• standard of deferred payment

• form of near money

If you transfer $1,000 from your savings account to your checking account:

• M1 decreases by $1,000, and M2 increases by $1,000.

• M1 increases by $1,000, and M2 decreases by $1,000.

• M1 and M2 don't change.

• M1 increases by $1,000, but M2 doesn't change.

• M2 decreases by $1,000, but M1 doesn’t change.

The existence of banks:

• results in the money supply being larger than the amount of currency in circulation.

• inhibits the creation of money

• makes the money supply equal to the amount of currency

  in circulation.

• results in the money supply being less than the amount

  of currency in circulation

• creates an economic system that is inferior to the barter

  economy.

What is a Stock

• Car

• Animals

• the capital raised by a business or corporation through the issue and subscription of shares,

• Used in cooking

Who produces our nation's coins?

• U.S. Treasury

• Bureau of Printing and Engraving

• U.S. Mint

• Commerce Department

What is the average life span of a U.S. one dollar bill?

• one year

• two years

• five years

• eight years

Who originally supplied most of the copper for our nation's first pennies?

• Ben Franklin

• Paul Revere

• George Washington

• Elvis Presley

Which U.S. president if featured on the $100,000 bill (not in circulation)

• Grover Cleveland

• Zachary Taylor

• William Howard Taft

• Woodrow Wilson

Which structure is on the back of the U.S. nickel?

• Mt. Vernon

• The White House

• Monticello

• The U.S. Capitol