Unit 7 Test: Fiscal, Monetary, Fed, Money

A saving account in a bank represents the function of money:

• Store of value

• A medium of exchange

• A standard for deferred payments

• A measure of value

What function of money does the picture represent?

• Medium of Exchange

• Store of Value

• Unit of Account

What function of money does the picture represent?

• Medium of Exchange

• Unit of Account

• Durable

What function of money does the picture represent?

• Medium of Exchange

• Store of Value

• Stable

The Fed is comprised of how many regional banks?

• 5

• 6

• 10

• 12

What are the Federal Reserve's two mandates?

• Stable prices

• Full employment

• Low interest rates

• To maximize profit

The Federal Open Market Committee is made up of five regional bank presidents and:

• the Secretary of the Treasury

• their vice presidents

• members of the Congressional committee on Budget and Finance

• the Board of Governors

This is the name for when the Federal Reserve buys or sells treasury bonds:

• Open market operations

• the bond market

• the money market

The unemployment rate in Hamsterville is low and inflation is high.

Which of the following is a monetary policy that could be used to close the gap?

• Increase Interest on Reserves

• Decrease interest on Reserves

• Decrease the discount rate

• Increase government spending

What is the name of the interest rate this bank will be charged for a loan from the Federal Reserve?

• The IORB: Interest on Reserve Balances

• The discount rate

• The prime rate

• The Federal Funds rate