Chapter 6 - Checkpoint #1

Which of the following is NOT a primary function of money?

• Medium of exchange
• Unit of account
• Source of entertainment
• Store of value

Which of the following best describes the function of money as a unit of account?

• It is used to store wealth over time.
• It represents a physical commodity like gold.
• It allows for the comparison of the value of different items.
• It facilitates the exchange of goods and services.

What does the term 'limited supply' refer to in the context of money?

• Money should be printed frequently.
• Money should be scarce to maintain its value.
• Money should be available in unlimited quantities.
• Money should be easily accessible.

Which type of money is backed by a physical item of value, such as gold or silver?

• Fiat money
• Representative money
• Commodity money
• Digital currency

Which of the following best defines fiat money?

• Money that is only used in digital transactions
• Money backed by a physical commodity
• Money established by government regulation
• Money that has intrinsic value

Which of the following statements accurately describes the Federal Reserve System?

• It is responsible for managing the national debt.
• It was created to regulate the stock market exclusively.
• It serves as the central banking system of the United States.
• It was established to issue physical currency only.

What is the role of the Federal Reserve Board?

• To issue currency
• To oversee the Federal Reserve Banks
• To manage the national debt
• To regulate the stock market

What does the Gold Standard mean in Economics?

• A system where currency is backed by silver.
• A monetary policy that restricts gold mining.
• A method of trading gold for foreign currency.
• A monetary system where currency value is directly linked to gold.

What committee meets throughout the year to discuss new actions in regard to credit and rates in the United States?

• National Credit Review Committee
• Federal Open Market Committee (FOMC)
• Economic Stability Task Force
• Monetary Policy Advisory Board

What is the name of the publication created by the FOMC to report its finding?

• The Beige Book

• Fiscal Policy Analysis
• Economic Outlook Report
• Financial Stability Review