Money

What does it mean that money has to be a medium of exchange?

• Money is a form of credit that must be repaid.
• Money is a representation of wealth that cannot be used for transactions.
• Money is something accepted by all parties as payment for goods and services

• Money is a tool for saving and investing.

Why does money have to be a measure of value?

• Money is a common denominator that can be used to express worth in terms most individuals understand.

• Money is a measure of value to assess government spending.
• Money is a measure of value to track inflation rates.
• Money is a measure of value to determine personal wealth.

What is it called when money has purchasing power to be saved until needed?

• Store of value
• Liquid asset
• Unit of account
• Medium of exchange

What is money that is not backed by gold or silver, meaning we are relying on the government to decide how much currency to print?

• Commodity money
• Barter system
• Cryptocurrency
• Fiat money

What is the main purpose of the Federal Reserve?

• To regulate international trade agreements.
• To oversee the stock market and corporate mergers.
• To manage monetary policy and ensure financial stability.
• To provide loans to individual consumers directly.

What branch of government does the Federal Reserve operate under?

• The Federal Reserve is a division of the Legislative Branch.
• The Federal Reserve operates under the Judicial Branch.
• The Federal Reserve operates independently, not directly under any branch of government.
• The Federal Reserve is part of the Executive Branch.

What is the main role of the U.S. Department of Treasury?

• To manage public transportation systems.
• To regulate the stock market and trade.
• To oversee military operations abroad.
• To manage government revenue from taxes and promote economic prosperity.

What are the causes of inflation?

• Causes of inflation include demand, scarcity, and excessive money supply.

• High interest rates
• Decreased consumer spending
• Increased savings rates

When there is MORE money than goods and services it is called.....

• recession
• deflation
• inflation
• stagnation

When there is LESS money than goods and services it is called.....

• equilibrium
• surplus
• inflation
• deflation