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Fundamental Principles of Money Vocabulary (Updated)

Total questions: 20

Worksheet time: 10mins

Name
Class
Date
1.

What are promissory notes issued by a Federal Reserve Bank called?

a)

Coins

b)

Banknotes

c)

Credit Cards

d)

Debit Cards

2.

What is a form of legal tender that can be used to exchange goods, debt, or services?

a)

Coin

b)

Cash

c)

Credit Card

d)

Exchange Rate

3.

What type of money is made with metal, stamped, and issued by the authority of government?

a)

Banknotes

b)

Cash

c)

Coin

d)

Debit Card

4.

What was the paper currency issued by the Continental Congress called?

a)

Banknotes

b)

Continentals

c)

Currencies

d)

Fiscal Policy

5.

What is a payment card issued by a bank to cardholders as a method of payment?

a)

Debit Card

b)

Credit Card

c)

Banknotes

d)

Coin

6.

What is the system of money in general use in a country called?

a)

Exchange Rate

b)

Fiscal Policy

c)

Currencies

d)

Electronic Funds Transfer

7.

What type of card provides the cardholder electronic access to their bank account?

a)

Credit Card

b)

Debit Card

c)

Banknotes

d)

Cash

8.

What is the term for a wire transfer of money from one bank account to another?

a)

Exchange Rate

b)

Fiscal Policy

c)

Electronic Funds Transfer

d)

Coin

9.

What is the rate at which a unit of currency of one country can be exchanged for a unit of currency of another currency?

a)

Fiscal Policy

b)

Exchange Rate

c)

Currencies

d)

Banknotes

10.

What is the means by which a government adjusts its spending levels and tax rates to monitor and influence a nation’s economy?

a)

Exchange Rate

b)

Fiscal Policy

c)

Electronic Funds Transfer

d)

Credit Card

11.

What defines the value of a currency unit in the Gold Standard?

a)

Standard mass of silver

b)

Standard mass of gold

c)

Government regulations

d)

Market demand

12.

What is a government bond?

a)

A form of equity issued by a national government

b)

A form of debt issued by a national government

c)

A type of currency issued by a national government

d)

A form of tax issued by a national government

13.

What does monetary policy involve?

a)

Actions of a central bank to control inflation

b)

Actions of a central bank to specify the size and rate of growth of the money supply

c)

Actions of a central bank to increase taxes

d)

Actions of a central bank to reduce unemployment

14.

What is generally accepted as a medium of exchange?

a)

Gold

b)

Money

c)

Bonds

d)

Stocks

15.

What does money demand refer to?

a)

The desire to hold financial assets in the form of money

b)

The desire to invest in stocks

c)

The desire to purchase real estate

d)

The desire to save in gold

16.

What is money supply?

a)

Total amount of goods available in a market

b)

Total amount of monetary assets available in a country’s economy at a specific time

c)

Total amount of gold reserves in a country

d)

Total amount of foreign currency in a country

17.

What is a personal check?

a)

A slip of paper allowing payment from a bank account

b)

A digital transaction method

c)

A type of credit card

d)

A form of electronic payment

18.

What are Treasury Bills (T-Bills)?

a)

Government bonds with terms of 10 years

b)

Government bonds with terms of 4, 13, 26, or 52 weeks

c)

Government bonds with terms of 30 years

d)

Government bonds with terms of 5 years

19.

What are Treasury Bonds (T-Bonds)?

a)

Treasuries with the shortest maturities

b)

Treasuries with the longest maturities

c)

Treasuries with medium maturities

d)

Treasuries with variable maturities

20.

What are Treasury Notes (T-Notes)?

a)

Government bonds with longer maturities than T-bonds

b)

Government bonds with shorter maturities than T-bonds

c)

Government bonds with the same maturities as T-bills

d)

Government bonds with variable maturities