Unit 5 - Money, Federal Reserve & Monetary Policy

Front

What is the definition of barter?

Back

goods are traded directly for other goods.

Front

Money that has value because the Government declared that it is money.

Back

Fiat Money

Front

Money that has value in itself (e.g. tobacco/salt)

Back

Commodity Money

Front

What is NOT a function of money? Medium of Exchange, Store of Value, Unit of Account, Durability

Back

Durability

Front

What function of money does the picture represent? Options: Medium of Exchange, Store of Value, Unit of Account, Acceptable

Back

Medium of Exchange

Front

If your car is said to be worth $20,000, what function of money is being used?

Back

Unit of Account

Front

If a $20 bill is still worth $20 in 10 years, which function of money is being used?

Back

Store of Value

Front

Which one of the following items would be the most liquid? Pizza, Ticket to next week's basketball game, Stereo, Dollar bill

Back

Dollar bill

Front

Which of the following is NOT a characteristic of money? portability, divisibility, acceptability, flexibility

Back

flexibility

Front

Which of the following is not counted as part of M1? Coins, Federal Reserve notes or " paper money", Checkable deposits

Back

Savings deposits