Money, Banking and Markets

When a person accidentally puts a paper bill in the washing machine, the _ of the money is being tested.

• durability

• portability

• divisibility

• acceptability

being able to pay in various denominations of money

• portability

• uniformity

• acceptability

• divisibility

The Antifederalists

• believed strong government control would establish order

• supported a centralized banking system

• favored leaving the powers in the hands of the states

• were led by Alexander Hamilton

The main issue with a gold standard

• confidence in the banking system

• instability in the currency

• setting a value for gold and the bills issued

• limited gold; limited money to circulate

Number of REGIONAL banks in the Fed

• 7

• 12

• 3

• 8

Who appoints the members on the Federal Reserve Board?

• President of the U.S.

• owners of member banks

• district bank leaders

• Congress

main responsibility of the Federal Reserve System

• establish monetary policy

• print money

• engrave coins

• gain power

What is the seigniorage of a quarter?

• 25 cents

• 8 cents

• 17 cents

Average time a coin is in circulation

• 5 years

• 30 years

• 10 years

• 100 years

average time a paper bill is in circulation

• <2 years

• 5 years

• 10 years

• 20 years