15.1

Credit cards:

are used as a substitute for cash and checks

._________ is cash held in the form of coins and paper money

currency

The U.S. money supply is composed of:

currency, demand deposits, and time deposits.

Ruth Hu recently inherited $200,000. She has invested the inherited money in real estate and government securities. Hu is using her money as a

store value

Hal Sliverstein has a savings account, also called a _____ at his local credit union

time deposit

are deposits at a bank or other financial institution that pay interest but cannot be withdrawn on demand without penalty

. Commercial deposits

Items that groups of people use as money must be to be acceptable mediums of exchange

. scarce, divisible, portable, and durable

A checking account is also commonly referred to as a

demand deposit

A checking account is also commonly referred to as a:

demand deposit

Bo Riley pays his rent and utility bills each month by writing checks. Riley is using a _____ account.

demand deposit

The ______ characteristic of money is revealed by the fact that a dollar can be converted into four quarters or ten times.

divisibility

Money market debt account and certificates of deposit are officially called deposits

time

is anything (regardless of form) that is acceptable as payment for goods and services.

Money

Money is used for

all of the above

Cupcakes hamburgers and cut flowers would not make good mediums of exchange because they lack the key characteristic

durability

for a college student who needs to buy an $80 textbook, the money she received from him parents for the purchase of school supplies would be used as a

medium of exchange

The most important function of the Federal Reserve System is carrying out policy

monetary

Any object or objects that a group of people use to buy and sell goods and services is called

money

Boulders, building trusses, and lead ingots would not make good mediums of exchange because they lack the key characteristic of

portability

Which of the following is NOT one of the key characteristics required in order for money to be a acceptable medium of exchange?

profitability

Weeds, sand, and paper clips would not make good mediums of exchange because they lack the key characteristic of:

scarcity