Unit 5: Money, Banking & the Fed

What was the earliest way people exchanged goods/services in ancient civilizations?

• Paper currency

• Gold coins

• Barter system

• Digital currency

Which of the following is NOT a function of banks?

• Keep money and valuables safe

• Printing currency

• Offer customers interest on deposits

• Loans

• Offering financial advice

What is the primary role of the Federal Reserve?

• Printing money

• Providing for a safe and stable economy

• Setting tax rates

• Managing government spending

Which of the following is a tool of monetary policy?

• Taxation

• Government spending

• Setting the Discount (interest) Rate

• Trade tariffs

Which of the following is NOT a function of money?

• Medium of exchange

• Store of value

• Unit of account

• Source of entertainment

What does the 'Character' in the 3 C's of Lending refer to?

• The borrower's credit history

• The borrower's assets

• The borrower's income

• The borrower's education

Which event is the overall main cause of the 2008 Financial Crisis?

• The dot-com bubble burst

• Banks issued too many subprime loans

• The Enron scandal

• The 9/11 attacks

Why might the Federal Reserve raise the interest rate?

• To control inflation

• To regulate stock markets

• To manage government debt

• To set tax rates

Which of the following best describes 'Capital' in the 3 C's of Lending?

• The borrower's credit score

• The borrower's assets and net worth

• The borrower's income

• The borrower's employment history

Which of the following is a primary function of the Federal Reserve?

• Collecting taxes

• Managing the national debt

• Conducting monetary policy

• Regulating international trade