Economics Unit 4

What term refers to the policy involving government decisions on taxes and public spending?

• Monetary Policy

• Fiscal Policy

• Reserve Requirement

• Federal Funds Rate

What is the name of the central banking system of the United States?

• Easy Money Policy

• Federal Reserve System

• Discount Rate

• Open Market Operations

What is a rate that banks charge each other for overnight loans to meet reserve requirements?

• Federal Funds Rate

• Discount Rate

• Monetary Policy

• Tight Money Policy

What term describes the exchange of goods and services without the use of money?

• Currency

• Barter

• Representative Money

• Commodity Money

What type of money has value because a government declares it acceptable for the payment of debts and generally includes coins and bills in circulation?

• Commodity Money

• Currency

• Fiat Currency

• Easy Money Policy

What function of money is described as what people are willing to accept in exchange for goods and services?

• Store of value

• Medium of exchange

• Standard of value

• Measure of service

Which function of money allows people to compare the values of goods and services using prices?

• Medium of service

• Store of exchange

• Standard of value or measure of value

• Value of storage

What function of money allows people to save for future consumption?

• Medium of exchange

• Standard of value

• Store of value

• Measure of exchange

What is commodity money?

• Money that has value simply because the government has decreed it

• Items that have no value in themselves but can be exchanged for something of value

• Items that value in themselves other than being used as a monetary unit

• Electronic money that is used in online transactions

Which of the following is an example of commodity money?

• Federal reserve Notes

• Gold certificates

• Gold

• Checks