AP Gov

Credit cards A. Defers payments B. Are a store of value C. Have led to wider use of currency D. Are part of the money supply

A

Demand deposits are type of A. Checking account B. Time deposit C. Money market mutual fund D. Savings deposit

A

Liquidity refers to A. The ease with which an asset is converted to the medium of exchange B. A measurement of intrinsic value of commodity money. C. The suitability of an asset to serve as a store of value. D. How many time a dollar circulates in a given year.

A

Mia puts money into a piggy bank so she can spend it later. What function of money does this illustrate? A. Store of value B. Medium of exchange C. Unit of account D. None of the above is correct

A

Which of the following is correct? A. If the feds purchases bonds in the open market, then the money supply curve shifts right. A change in the price level does not shift the money supply curve. B. If the Fed sells bonds in the open market, then the money supply curve shifts right. A change in the price level does not shift the money supply curve. C. If the Fed purchases bonds, then the money supply curve shifts right. An increase in the price level shifts the money supply curve right. D. If the Fed sells bonds, then the money supply curve shifts right. A decrease in the price level shifts the money supply curve right.

A

Current U.S. currency is A. Fiat money with intrinsic value. B. Fiat money with no intrinsic value C. Commodity money with intrinsic value D. Commodity money with no intrinsic value.

B

The "yardstick" people use to post prices and record debts is called A. A medium of exchange B. A unit of account C. A store of value D. Liquidity

B

Which of the following executed open-market operations? A. Board of governors B. New York Federal Reserve Bank C. The FOMC D. None of the above is correct

B

Commodity money is A. Backed by gold B. The principal type of money in use today C. Money with intrinsic value D. Receipts created in international trade that are used as medium of exchange.

C

The Fed's primary tools to change the money supply is A. Changing the discount rate. B. Changing the reserve requirements. C. Conducting open market operations. D. Redeeming Federals Reserve notes

C

The agency responsible for regulating the money supply in the United States is A. The comptroller of the currency B. The us treasury C. The Federal Reserve D. The US bank

C

The existence of money leads to A. Greater specialization in production, but not a higher standard of living. B. A higher standard of living, but not a higher standard of living. C. Greater specialization and a higher standard of living. D. Neither greater specialization or a higher standard of living.

C

The federal reserve does all except which of the following? A. Control the supply of money B. Control the value of money C. Make loans to individual D. Regulate the banking system

C

Which of the following best illustrates the medium of exchange function of money? A. You keep some money hidden in your shoe. B. You keep track of the value of your assets in terms of currency C. You pay for your double latte using currency. D. None of the above is correct

C

A decrease in the money supply created an excess A. Supply of money that is eliminated by rising prices B. Supply of money that is eliminated by falling prices. C. Demand for money that is eliminated by rising prices D. Demand for money that is eliminated by falling prices.

D

Changes in the quantity of money affect A. Interest rates B. Prices C. Production D. All of the above are correct

D

When the money market is drawn with the value of money on the vertical axis, the price level increases if A. Either money demand or money supply shifts right. B. Either money demand or money supply shifts left. C. Money demand shifts right or money supply shifts left. D. Money demand shifts left or money supply shifts right.

D

Which of the following is a function of money? A. A unit of account B. A store of value C. Medium of exchange D. All of the above is correct

D

Which of the following is a store of value A. Currency B. US government bonds C. Fine art D. All of the above are correct

D

Which of the following is correct? A. The federal reserve has 14 regional banks. The board of governors has 12 members who serve 7-year terms. B. The Federal reserve has 14 regional banks. The board of governors has 7 members who serve 14-year terms. C. The federal reserve has 12 regional banks. The board of governors has 12 members who serve 7-year terms. D. The federal reserve has 12 regional banks. The board of governors has 7 members who serve 14-year terms.

D