WorksheetsMoney and the Fed
Total questions: 25
Worksheet time: 13mins
Name
Class
Date
1.
Which of the following is an example of a barter system?
a)
Instead of paying rent, you clean the owners house
b)
instead of paying cash for a computer, you use a credit card
c)
Instead of using pesos in Mexico, you use dollars
2.
Which is an example of money as a unit of account?
a)
buying a toy for $8.99
b)
lending a friend $25
c)
checking the price of a camera at several stores before buying it at the lowest price
3.
money being able to withstand wear and tear from use is an example of its
a)
unifromity
b)
portability
c)
divisibility
d)
durability
4.
Objects that have value in themselves as well as their value as a means of exchange are called
a)
simple money
b)
commodity money
c)
representative money
5.
What is the purpose of the
Federal Deposit Insurance Corporation (F.D.I.C.)
Federal Deposit Insurance Corporation (F.D.I.C.)
a)
to make sure banks do not fail
b)
to make sure customers don't lose money if a bank fails
c)
to make sure the banks charge a fair amount of interest on loans
6.
What is the gold standard?
a)
a currency system in which each dollar is worth 1/20 of a pound of gold
b)
a system that uses gold coins as a country's money
c)
a sysytem in which a country's money is backed with gold
7.
Which of the following is not a responsibility of the Federal Reserve?
a)
supervising commercial banks
b)
overseeing taxation a government spending
c)
conducting monetary policy
d)
providing financial services to member banks
8.
What is a mortgage used to purchase?
a)
real estate
b)
car
c)
college tuition
d)
business expenses
9.
Why is using coins as money easier than using gold bars?
a)
coins are more limited in supply
b)
coins are more unifrom
c)
coins are more portable
d)
coins are more durable
10.
Who are the direct owners of the Federal Reserve?
a)
privately owned by the government
b)
publicly owned its Board of Governors
c)
publicly owned by private investors
d)
privately owned by its member banks
11.
The Fed acts as the bank for
a)
individuals
b)
private companies
c)
foreign companies
d)
the government
12.
Money that can easily be divided into smaller units of value has the characteristic of
a)
divisibility
b)
denominations
c)
exchange
13.
Today, most of our money is issued by
a)
individual states
b)
the U.S. President
c)
The Federal Reserve System
d)
congress
14.
The difference between representative money and fiat money is that
a)
representative money can be converted into silver, and fiat money cannot
b)
representative money is worth more per dollar than fiat money
c)
fiat money is counted in coins; representative money is counted in paper bills
d)
fiat money is more traditional than representative money, which is a newer concept
15.
money that has value because the government has ordered that is an acceptable means to pay debts
a)
commodity money
b)
fiat money
c)
representative money
16.
The central banking system of the U. S.
a)
currency
b)
The Federal Reserve System
c)
the Federal Deposit Insurance Corporation ( F.D.I.C.)
17.
coins and paper bills used as money
a)
currency
b)
commodity money
c)
treasury securities
18.
the price paid for the use of borrowed money
a)
monthly payment
b)
exchange rate
c)
interest
d)
opportunity cost
19.
objects that have value in themselves and that are also used as money
a)
artifacts
b)
treasures
c)
tokens
d)
commodity money
20.
a specific type of loan that is used to buy real estate
a)
signature loan
b)
personal loan
c)
mortgage
d)
payday loan
21.
exchange of one set of goods for another
a)
wheel and deal
b)
price is right
c)
barter
22.
anything used as a medium of exchange, a unit of account, and a store of value
a)
money
b)
credit card
c)
debit card
d)
currency
23.
a device that allows its holder to buy goods based on a promise to pay later
a)
credit card
b)
money order
c)
cashiers check
d)
travelers check
24.
objects that have value because the holder can exchange them for something of value
a)
money
b)
comedy money
c)
representative money
d)
fiat money
25.
a device that allows its holder to buy goods and have the payment deducted from a checking account
a)
scanner
b)
fax machine
c)
debit card
100 %
