Econ Chapter 16 1/2
Demand deposits are included in
. M1 and M2.
Credit card limits are included in
. neither M1 nor M2.
Which of the following is included in M2 but not in M1?
. savings deposits
Traveler's checks are included in
M1 and M2.
Money market mutual funds are included in
M2 but not M1
Which of the following best illustrates the medium of exchange function of money?
You pay for your oil change using currency.
Prisoners sometimes determine a single good to be used as money. This good becomes
a medium of exchange and a unit of account.
Any item that people can use to transfer purchasing power from the present to the future is called
a store of value.
When in France you notice that prices are posted in euros, this best illustrates money's function as
a unit of account.
Which of the following is a function of money?
a. a unit of account b. a store of value c. medium of exchange
Money
a. is more efficient than barter. b. makes trades easier. c. allows greater specialization
The New York Federal Reserve Bank
a. president always gets to vote at the FOMC meetings. b. conducts open market transactions. c. is one of 12 regional Federal Reserve Banks.
The members of the Federal Reserve's Board of Governors
are appointed by the president of the U.S. and confirmed by the U.S. Senate.
Demand deposits are a type of
checking account.
Currently, U.S. currency is
fiat money with no intrinsic value.
The existence of money leads to
greater specialization and to a higher standard of living
. Fiat money
has no intrinsic value
Paper money
is valuable because it is generally accepted in trade.
You pay for cheese and bread from the deli with currency. Which function of money does this best illustrate?
medium of exchange
Commodity money is
money with intrinsic value.
Currency includes
paper bills and coins.
Which group within the Federal Reserve System meets to discuss changes in the economy and determine monetary policy?
the FOMC
The agency responsible for regulating the money supply in the United States is
the Federal Reserve
. Liquidity refers to
the ease with which an asset is converted to the medium of exchange.
M1 equals currency plus demand deposits plus
traveler's checks plus other checkable deposits.
When we measure and record economic value, we use money as the
unit of account
