ECON Chapter 6 Review

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

• certificate money

• representative money

• fiat money

• commodity money

Commodity money can be best described as money that is

• backed up by a valuable material

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

• used to purchase valuable materials

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

Money in the United States is which type of money?

• fiat money

• representative money

• commodity money

• speculative money

The Federal Reserve is ....

• made up of 12 district banks and member banks

• made up of independent district banks

• managed by 12 board of directors

• made up of the President's money

____________ is the privately owned, publicly controlled central bank of the U.S.

• J.P. Morgan Chase

• Bank of America

• The Federal Reserve System (FED)

• Wells Fargo

_____________ are a paper currency issued by the FED

• Specie

• Federal Reserve Notes

• Disney bucks

• Shilling

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

• Congress

• Department of the Interior

• FDIC

• Department of Homeland Security

____________ a system in which currency could be exchanged for a certain amount of gold.

• Legal tender

• Gold Standard

• FDIC

• Specie

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

• scarcity

• portability

• divisibility

• store of value

What are M1 and M2?

• fiat money

• specie

• currency

• money supplies