Money and the Federal Reserve Test

The Federal Reserve was created in this year?

• 1918

• 1941

• 1913

• 1929

Exchange of goods and services for other goods and services

• Trade

• Barter

• commodity

• representative

The following are all TYPES of money EXCEPT

• Commodity

• Representative

• Fiat

• value

The central banking system of the United States is called the

• U.S. Mint

• Federal Reserve System

• U.S. Treasury

• National Bank of the U.S.

Assets, such as savings accounts, that can be turned into money quickly

• jumbo CDs

• stock funds

• near monies

• fiat money

The function of money used when you compare prices in a store

• unit of account

• store of value

• medium of exchange

• near exchange of money

M1 is a narrower definition of money and includes the following EXCEPT

• Currency

• savings accounts

• travelers checks

• checkable deposits

M2 is a broad definition of money and includes all the following EXCEPT

• M1

• time deposits

• savings accounts

• stock funds

The purpose of the Federal Reserve in the early days was to prevent

• interest rate hikes

• inflationary pressures

• recessions

• bank panics

The Federal Reserve System sometimes goes by its other name the

• U.S. Treasury

• Bank of the United States

• The Fed

• FOMC