Chapter 15 Review Part 1

Jacob, a business student, registered for a class that focused on how money is managed by individuals, companies, and governments. What type of class did Jacob register for?

• Accounting

• Business Basics

• Finance

• Economics

________ is best described as a paper money that is not readily convertible to a precious metal, such as gold.

• Fiat money

• Bitcoin

• Paper money

• Credit card

Money serves three important functions:

as a medium of exchange, a measure of value, and a _______.

• symbol of wealth

• token of appreciation

• store of value

• store of stability

Jamie, a hairstylist, often trades haircuts with the restaurant owner down the street from his salon for free food. This scenario best describes

• using fiat money.

• purchasing.

• using IOU's.

• bartering.

Large colored rocks could be used as money, but you couldn’t carry them around in your wallet. What characteristics of money does this relate to?

• store of value

• accessability

• portability

• divisible

U.S. money includes subtle colors in addition to the traditional green, as well as enhanced security features, such as a watermark, security thread, and color-shifting ink. Which of the following characteristics of money is being protected by these measures?

• acceptability

• difficult to counterfeit

• stability

• divisibility

The ________ is the guardian of the American financial system.

• Federal Savings and Loan

• Federal Reserve Board

• New York Stock Exchange

• New York Federal Reserve Bank

________ are preferred over currency for many transactions due to their lower risk of loss.

• Checks

• Coins

• Gold Bars

• Bitcoin

It costs more to produce a penny than it is worth.

• True

• False

• Not Sure

• What?

One of the Federal Reserve Board’s major responsibilities is to promote consumer protection and community development.

• True

• False