Econ Test 10/4/23

Kat is able to buy 50 chocolate bars with 5 $10 bill she earned. This is an example of money as..

• Store of Value

• Medium of Exchange

• Standard of Value

• Unit of Account

Which function of money allows comparisons between goods?

• Measure/Standard of Value

• Store of Value

• Order of Value

• Value Added

The Fed controls the _________ in circulation

• Flow

• Interest rate

• Money supply

• Inflation

What is at the top of the Federal Reserve System organisation?

• 12 Federal Regional Banks

• Federal Open Market Committee

• Member Banks

• Board of Governors

Their job is to set monetary policy in the US, which means they influence the availability of money in the US

• Board of Governors

• 12 Federal Regional Banks

• Federal Open Market Committee

• Member Banks

Cartman is saving money to buy a car, this is an example of…

• Money as a store of value

• Money as a medium of exchange

• Money as a standard of account

• Money as the root of all evil

Lexie puts his money in a savings account at Silver Bank. Would he earn more with Simple or Compound interest?

• Simple because interest is determined annually

• It would be the same amount

• It depends mostly on the CPI

• Compound because interest paid increases over time

Meg is deciding between 2 loan offers. To determine which loan to chose, she should compare each loan's

• Amortization schedule

• Annual Percentage Rate

• Compound Interest

• Average Prime Rate

Includes savings banks, savings and loan banks, credit unions.

• 12 Regional Banks

• Member Banks

• The Federal Government

• The American People

Who are Fiscal Policy decisions made by?

• Congress

• The Federal Open Market Committee

• The Presidents of Regional Banks

• The Federal Reserve