Preparing for the Test (Money)

Front

Which of the following does the Federal Reserve use to regulate the nation's money supply? Fiscal Policy, Proposing Legislation, Monetary Policy, Regulations

Back

Monetary Policy

Front

When money is not used, and goods & services are exchanged for other goods & services, this system is called

Back

Barter

Front

"The Fed" is short for

Back

The Federal Reserve System

Front

A man budgeted $200 a month for clothing. This month, the man spent $150 on clothing. Therefore, that budget item is considered to have

Back

a budget variance

Front

A person complains about how expensive it is to be a cigarette smoker. One of the reasons cigarettes are so expensive is that

Back

The government imposes an excise tax on them

Front

Jacob lost his debit card. If he reports his lost debit card within two business days, he can be held responsible for

Back

Up to $50 of unauthorized transactions

Front

What action can the Federal Reserve System (Fed) take to stimulate the economy during a recession?

Back

Lower short-term interest rates

Front

Your checking account has overdraft protection. If you spend more than the balance in your checking account, what is likely to happen?

Back

You'll be charged a fee AND pay interest on how much the bank lent you to cover the overdraft.

Front

A person’s savings account earned interest. This person wants to know if he must pay taxes on the interest earned. What would the IRS tell him?

Back

Interest earned that is more than $10 is income and taxable.

Front

The interest rate that's paid on a money market account balance varies depending on current interest rates.

Back

varies depending on current interest rates