3/27 CH10 EC

Which is a good synonym for the word barter in the term barter economy?

• trade

• fiat

• specie

• monetary

Which statement best explains why money was invented?

• Money was invented to support a barter economy.

• Money was invented to facilitate the exchange of goods and services.

• Money was invented to strengthen government power and control.

• Money was invented to lift people out of poverty.

Which of the following is a basic characteristic of money?

• portability

• durability

• divisibility

• all of the above

What is the origin of the word salary?

• The salad prepared in honor of the Greek money gods

• The salamanders whose blood was used to print money in China

• The salt paid to Roman soldiers

• A person named Sal

Federal Reserve System (Fed)

• the central bank of the United States

• the central bank of Canada

• a bank during the Civil War

• none of these

What is commodity money?

• Money that is only used for online transactions
• Money that is only valuable because it is backed by a government
• Money that is only accepted in certain regions
• Money that has an alternative use as an economic good; gunpowder, flour, corn, etc.

What is fiat money?

• Fiat money is currency that is accepted worldwide.
• Fiat money is currency that is only used in digital transactions.
• Fiat money is currency that a government has declared to be legal tender.

• Fiat money is currency that is backed by a physical commodity.

What is a "bank run"?

• A 'bank run' is a financial marathon organized by banks.
• A 'bank run' is a type of exercise routine offered by financial institutions.
• A 'bank run' is a situation where a large number of customers withdraw their deposits from a bank due to concerns about the bank's solvency or stability, potentially leading to the bank's failure.
• A 'bank run' is a term used to describe a bank's marketing campaign.

What is the Federal Deposit Insurance Corporation (FDIC)?

• The FDIC is an independent agency of the U.S. government that provides deposit insurance to depositors in U.S. commercial banks and savings institutions.
• The FDIC is a private organization that offers investment services to individuals
• The FDIC is a non-profit organization focused on environmental conservation
• The FDIC is a regulatory body that oversees the telecommunications industry

What is the gold standard?

• A system that uses actual gold coins as a country’s money
• A system in which the country’s money is backed with gold
• A currency system in which each dollar is worth 1/20th of a pound of gold
• A money system in which the paper currency is good in more than one country