UNIT 3 Vocab Quiz: CH.10 Lesson 1

What is the Federal Reserve System (Fed)?

• The central banking system of the United States.

• An economic system where goods are exchanged.

• A standard unit of currency.

• Currency that must be accepted for payment.

What is a Barter Economy?

• An economic system where goods and services are exchanged directly.

• A monetary system backed by gold.

• A bank chartered by the federal government.

• A nonprofit financial cooperative.

What is a Monetary Unit?

• The standard unit of currency in a country’s money system.

• Currency that must be accepted for payment.

• A financial institution overseeing monetary policy.

• A U.S. government agency that insures bank deposits.

What is Legal Tender?

• Currency that must be accepted for payment of debts.

• A bank chartered by the federal government.

• A monetary system backed by gold.

• A nonprofit financial cooperative.

What is Fiat money?

• Fiat money is backed by gold reserves.
• Fiat money is only used in international trade.
• Fiat money is currency that has value because a government maintains it and people have faith in its value.
• Fiat money is a type of cryptocurrency.

What is commodity money

• Commodity money is only used in barter systems.
• Commodity money has no intrinsic value.
• Commodity money is a digital currency without physical form.
• Commodity money is money that has intrinsic value, derived from the commodity it is made of.

What is na medium of exchange?

• Money is a common medium of exchange.
• Credit cards are not a medium of exchange.
• Gold is the only medium of exchange.
• Barter is a form of currency.

What is a measure of value?

• Currency or units of account.
• Interest rates
• Stock prices
• Real estate values

What is store of value?

• A store of value is an asset that depreciates over time.
• A store of value is an asset that can be saved and retrieved in the future without losing value.
• A store of value is a physical item that cannot be saved for future use.
• A store of value is a type of currency that can only be used immediately.

What are demand deposit accounts?

• Accounts that require a minimum balance to avoid fees.
• Accounts that can only be accessed during business hours.
• Accounts that earn interest on deposits.
• Demand deposit accounts are bank accounts that allow for withdrawals at any time without prior notice.