Econ Unit 4 CFA Review

The difference between representative money and fiat money is that

• representative money is worth more than fiat money.

• fiat money is counted in coins; representative money is counted in paper dollars.

• fiat money is more durable than representative money.

• representative money is backed by silver or gold, ; fiat money is backed by government decree.

Money or other material generally accepted as payment for goods and services.

• Measure of value

• Medium of exchange

• Scarcity

• Store of Value

One of three functions of money allowing people to preserve value for future use.

• Store of value

• Divisibility

• Portability

• Measure of value

What function of money does the picture represents?

• Medium of Exchange

• Store of Value

• Unit of Account

• Durable 

What function of money does the picture represent? 

• Medium of Exchange

• Store of Value

• Unit of Account

• Acceptable 

What function of money does the picture represents? 

• Medium of Exchange

• Store of Value

• Unit of Account

• Stable 

The federal government's overall approach to spending and taxes is called

• Physical Policy

• Fiscal Policy

• The Federal Reserve

• Monetary Policy

Taxing and Spending are tools of

• fiscal policy

• monetary policy

The action by the FED to adjust the size of the money supply, and to adjust interest rates in order to keep prices down and employment high.

• fiscal policy

• monetary policy

In order to help the economy grow, the FED may____________the reserve requirement, allowing banks to loan more people money so that they spend more

• lower

• raise

• spend more

• save more