Fiscal Policy

What are the three main functions of money?

• Store of value, unit of account, medium of exchange

• Durability, portability, divisibility

• Fiat, representative, commodity

• Gold standard, silver standard, paper standard

Which type of money has value because the government states it is an acceptable means to pay off debts?

• Representative money

• Commodity money

• Fiat money

• Digital money

What is the term for paper or another object that represents an object of value such as gold/silver to be exchanged for goods or services?

• Fiat money

• Representative money

• Commodity money

• Digital currency

Which of the following is NOT a characteristic of money?

• Durability

• Portability

• Divisibility

• Volatility

What was one reason countries moved away from the gold standard?

• Gold became too scarce

• Production of goods and services exceeded the gold/silver backing

• Digital currencies became more popular

• The government wanted more control over the money supply

What year was the Federal Reserve System established?

• 1900

• 1913

• 1929

• 1945

How many regional Federal Reserve Banks are there in the United States?

• 7

• 10

• 12

• 15

What is the maximum term length for a member of the Federal Reserve's Board of Governors?

• 4 years

• 8 years

• 14 years

• Life

Which of the following is NOT one of the primary functions of the Federal Reserve?

• Conducting the nation's monetary policy

• Promoting the stability of the financial system

• Setting federal income tax rates

• Fostering payment and settlement system safety and efficiency

Which of the following is considered the Fed's most frequently used tool for regulating money supply?

• Reserve requirements

• Discount rates

• Open market operations

• Paying interest on bank reserves