Chapter 10

When did the United States go on the gold standard? A. 1900 B. 1878 C. 1861 D. 1934

1861

What problem or problems was the Fed supposed to help solve? A. There were many national banks and no centralized system for keeping them strong. B. Banks were vulnerable to failure because of a lack of reserves. C. The nation was operating with several different forms of national currency. D. A, B, and C

A, B, and C

How was commodity money different from fiat money? A. Commodity money could be used only to settle debts, while fiat money could be used only to make purchases. B. Fiat money could be used only to settle debts, while commodity money could be used only to make purchases. C. Fiat money had an alternative use as an economic good, while commodity money did not. D. Commodity money had an alternative use as an economic good, while fiat money did not.

Commodity money had an alternative use as an economic good, while fiat money did not.

If I can access funds deposited in a bank by writing a check and without in a bank by writing a check and without having to get bank approval, what type of account do I have? A. Demand deposit account (DDA) B. Traveler's account C. Certificate of deposit D. Time deposit account

Demand deposit account (DDA)

What must two people who want to trade with each other have in a barter economy? A. Mutual coincidence of wants B. Pesos C. Federal Reserve notes D. Fiat money

Mutual coincidence of wants

What are the four characteristics of money? A. Portability, durability, divisibility, scarcity B. Immobility, weakness, divisibility, abundance C. Exchange, value, storage, scarcity D. Portability, value, divisibility, storage

Portability, durability, divisibility, scarcity

Who owns the Federal Reserve System? A. Privately owned commercial banks B. The federal government C. The American people D. The Federal Deposit Insurance Corporation

Privately owned commercial banks

Who issued paper currency in the United States during the first half of the 19th century? A. A central bank B. The national bank C. State banks D. The Federal Reserve

State banks

Why did the federal government begin printing greenbacks in 1861? A. To help pay for the Civil War B. To compete with state banks C. To revive the Continental dollar D. To ruin the Confederate economy

To help pay for the Civil War

What is the main purpose of the FDIC? A. To function as a central bank B. To insure bank deposits C. To control the money supply D. To combat counterfeiting

To insure bank deposits

What brought more pesos to colonial America? A. Fiat money B. Trade with Native Americans C. Triangular trade D. The American Revolution

Triangular trade

By the end of the Revolutionary War, Continental dollars were A. backed by gold. B. printed by the federal government. C. considered worthless. D. all held by banks.

considered worthless.

To counter bank runs during the Great Depression, the federal government A. declared a bank holiday. B. issued silver certificates. C. went on the gold standard. D. created the Federal Reserve System.

created the Federal Reserve System.

In 1933, President Roosevelt issued a series of orders that effectively _____ the gold standard to the American people. A. guaranteed B. explained C. promised D. denied

denied

M1 includes money supply components conforming to money's role as a A. measure of value. B. medium of exchange. C. store of value. D. monetary unit.

medium of exchange.

When money serves as a store of value, it _____ purchasing power. A. loses B. saves C. buys D. sells

saves

Specie was money in the form of A. paper currency. B. silver or gold coins. C. Continental dollars. D. commodities such as corn, hemp, gunpowder, and musket balls.

silver or gold coins

In 1913, Congress created A. the gold standard. B. the Federal Reserve System. C. silver certificates. D. the Federal Deposit Insurance Corporation.

the Federal Deposit Insurance Corporation.

Today most of our money is issued by A. individual states. B. the Federal Reserve System. C. the U.S. president. D. Congress.

the Federal Reserve System.

The dollar, or monetary unit and standard unit of currency in the U.S. monetary system, was modeled after A. the French franc. B. the British pound. C. the Spanish peso. D. the Austrian taler.

the Spanish peso.