Macro Economics Chapter 14 Quiz Flashcards
Barter requires: A: that the exchange medium be divisible.B: an effective middleman.C: that the exchanged goods be durable.D: that the exchanged goods be portable.E: a coincidence of wants.
E
The use of a dollar bill to buy a concert ticket represents the function of money as a: A; All of the above.B: store of value.C: medium of exchange.D: unit of account.
C
Anything can be money if it acts as a: A: medium of exchange.B:store of value.C: unit of account.D: All of the above.
D
Credit cards are: A: M1 money.B: M2 and M3 money.C: M3 money.D: near money.E: not money.
E
Which of the following is not counted as part of M1? A: Federal Reserve notes or & paper money.B: Coins.C: Passbook savings deposits.D: travelers’ checks.E: Checkable deposits.
C
Members of the Federal Reserve Board of Governors serve one nonrenewable term of: A: 14 years.B: life.C: 4 years.D: 7 years.
A
Which of the following types of financial institutions is required to belong to the Federal Reserve System? A: National banks.B: Credit unions.C: Savings and loan institutions.D: State-chartered banks.
A
The Federal Reserve System: A: pursues independent fiscal policy at the behest of Congress.B: never acts to control inflation.C: pursues an independent monetary policy which can conflict with the government’s economic policy.D: was created by and is owned by the government. E: only acts to lower taxes and increase spending when there are recessionary tendencies in the economy.
C
Which of the following is not one of the functions of the Federal Reserve? A: Controlling the money supply.B: Clearing checks.C: Printing currency.D: Supervising and regulating banks.
C
Which of the following is the most important protection against fears of bank collapse? A: The gold and silver that backs Federal Reserve notes.B: The Federal Deposit Insurance Corporation.C: The Federal Reserve Open Market Committee.D: The Federal Reserve.
B
