Unit 4: Money and Banking

Which of the following choices is not a function of money?

• Standard of Value

• Store of Value

• Medium of Exchange

• Variation in Exchange

Which of the following choices correctly lists the physical properties of money?

• Durability, Portability, Divisibility, Uniformity

• Portmantility, Dynability, Pacificity, Durability

• Portmantility, Divisibility, Uniformity, Dynability

• Dynability, Pacificity, Divisibility, Uniformity

How do economists define money?

• A small to medium-sized primate that typically has a long tail

• Any item or record that is generally recognized as payments for goods

• Concerning a large number of an item; concrete or abstract

• An instrument or device used for observing, checking, or keeping a continuous record of a process or quantity.

Which of the following choices is not an economic property of money?

• Stability of value​

• Acceptability

• Scarcity​

• Unpredictability

Match each type of money to the best definition.

• Commodity Money

• Has intrinsic value based on the material from which it is made​

• Fiat Money

• Has value only because the government says so​

• Representative Money​

• Backed by tangible goods (i.e. tied to silver or gold)​

Who was the United States' first Secretary of the Treasury?

• Aaron Burr

• Thomas Jefferson

• Alexander Hamilton

• Benjamin Franklin

Which 1913 act of Congress finally reestablished the National Bank?

• Federal Reserve Act

• Gibbons Ogden Act

• Temporary Authorization Act

• Savings and Loan Act

Which act established the FDIC, the Federal Deposit Insurance Corporation, which insures bank deposits to this day?

• America for a Brighter Future Act of 1977

• Banking Act of 1933

• Hamilton Reserve Act of 1812

• Federal Reserve Act of 1913

Match each type of bank to the best description.

• Credit Union

• Privately owned and provides basic banking services

• Commercial Bank

• Member owned and operated

• Savings and Loan

• Chartered by states to take savings deposits and provide home mortgage loans​

Which of the following is not a function of banks?

• Customers can store money

• Customers can destroy money

• Customers can earn money

• Customers can deposit money