Econ unit 5

What is money?

• any item or verifiable record that is accepted as payment for goods and services
• Paper and coins traded between people
• a system of exchange in which participants in a transaction directly exchange goods or services for other goods or services
• Currency issued by only the US government for debts

Salt, gold, silver, and Wampum are examples of

• Fiat currency
• Commodity backed currency
• Commodity currency
• Barter Sytem

Who determines how much money is in circulation?

• The Government
• The President
• The Federal Reserve
• North Country Savings & Loan

The Federal Reserve is

• The Central Bank of the US
• The part of the government that creates taxes
• Where all of the money in the US is stored and reserved

What type of currency is the US dollar?

• Fiat currency
• Commodity Currency
• Commodity Backed Currency
• Complete Currency

The Federal Reserve can help expand the economy (Expansionary Policy) through

• Raising interest rates
• Lowering interest rates
• Raising taxes
• Lowering taxes

Monetary Policy is

• a policy where gold is used as money
• the policy that regulates the money supply
• the policy that regulates taxes
• a policy congress uses to print more money

This is the gap between how much money people make

• Barter system
• Income Inequality
• Monetary policy
• Universal Basic Income

True or False: People tend to spend more money when using cash

• True
• False

This characteristic of money allows it to be split into smaller units

• Portability
• Duribility
• Divisibility
• Acceptability