Chapter 10 Test, Form A - Money and Banking

You pick up a $1 bill. What are you holding?

• currency

• a Federal Reserve note

• fiat money

• all of the above

You can easily carry money in a pocket or purse. This reflects what characteristic of money?

• legal tender

• limited supply

• durability

• portability

During the Civil War, Congress enacted the National Currency Act, which

• created a National Banking System.

• raised money for the Union.

• created a national currency.

• all of the above.

The United States went on the gold standard in (a)   and then went off the gold standard in (b)   .

• 1933

• 1971

• Gold Standard

• Fiat Currency

Most banks are established

• as corporations.

• by local governments.

• to be credit unions.

• to fulfill reserve requirements.

Which of the following is a DDA?

• a debit card

• a credit card

• a checking account

• a savings account

medium of exchange

• Security that pays interest over terms ranging from two to ten years.

• Security that matures in a year or less

• Money is used in exchange for goods and services needed by individuals, businesses, and governments.

• Money is a common measure of what something is worth or price of a good or service

Select the right order in the evolution of money

• 1) Precious Metal Coins, 2) Barter System, 3) Fiat Currencies, 4) Paper Currencies

• 1) Barter System, 2) Precious Metal Coins, 3) Paper Currencies, 4) Fiat Currencies

• 1) Barter System, 2) Precious Metal Coins, 3) Fiat Currencies, 4) Paper Currencies

• 1) Precious Metal Coins, 2) Barter System, 3) Paper Currencies, 4) Fiat Currencies

An account in which money is kept in a bank or credit union for safekeeping. Money can be easily withdrawn by writing checks or using an ATM or debit card. 

• Savings Account
• Line of Credit
• Checking Account
• Money Market Account

A interest-bearing deposit account held at a bank or other financial institution

• Checking account
• Investment account
• Savings account
• Credit card