Money, Banking, and Federal Reserve Assessment Two

Front

You receive money as payment for working at a grocery store. This best illustrates which function of money? Options: medium of exchange, unit of account, store of value, liquidity, commodity money

Back

medium of exchange

Front

Marcella puts money into her savings account. Which function of money does this illustrate? Options: store of value, medium of exchange, unit of account, fiat money, commodity money

Back

store of value

Front

A liquid asset is one where the asset is easily

Back

converted to the medium of exchange.

Front

The agency responsible for regulating the money supply in the United States is

Back

the Federal Reserve.

Front

The Federal Reserve has a total of ________ districts.

Back

12

Front

All of the following are true about the Federal Reserve EXCEPT: the Federal Reserve is overseen by a seven member Board of Governors, the Federal Reserve is headquartered in New York City, the Board of Governors are appointed by the President of the U.S., the Fed committee is referred to as the Federal Open Market Committee.

Back

the Federal Reserve is headquartered in New York City

Front

Decisions by Federal Reserve policymakers concerning the money supply constitute

Back

monetary policy.

Front

Paper money has no intrinsic value; its value comes from the government’s order that we accept it as a form of payment.

Back

fiat money

Front

Which of the following is NOT a tool of monetary policy? Options: open-market operations, changes in reserve requirements, changes in interest rates, changes to foreign policy

Back

changes to foreign policy

Front

If the Fed wanted to increase the money supply, it would most likely make open market...

Back

purchases of bonds from the banks