Econ Final Ch. 9

For something to be called money it must:

A. Be accepted in exchange for all other goods and services.

M1 is defined as measure of the money supply that includes, mainly:

A. Checking accounts and currency in the hands of the people.

Which of the following statements about commercial banks is correct?

B. Commercial banks are privately owned and profit seeking.

A "double coincidence of wants" is:

B. Eliminated with the use of money.

Money gets its value from:

B. Its purchasing power

When you read the price tag on an article of clothing, money is functioning as a:

B. Standard of value.

Which of the following is NOT one of the desirable characteristics of a money unit?

C. Abundance

The most important body of the Federal Reserve System to carry out monetary policy is the:

C. Federal Open Market Committee

Of the following assets , which is the most liquid?

D. Checking accounts.

The interest rate charged by the Fed when a bank borrows reserves from the Fed is called the:

D. Federal funds rate

The Federal Reserve conducts monetary policy, which is best defined as:

D. Manipulating the size and growth of the money supply to improve economic performance.