MACROECONOMICS TEST 4

Reserve rate

The percentage of deposits that banks are required to hold in reserve is called the

Paper money and cash

All of the following are M2 EXCEPT?

Money market mutual accounts

All of the following are examples of M1 EXCEPT

$10 Federal Reserve notes

All of the following are examples of commodity money EXCEPT

Index of prices

All of the following are functions of money EXCEPT

Commodity money is viewed as an unfair competitor of paper money

All of the following are problems with commodity money EXCEPT

Store of value

An item that can use to transfer purchasing power from the present to the future is called

Store of value

Maria Lopez deposits $200 into her savings account each month. Her daughter Victoria keeps all her pennies in a piggy bank. These are examples of

True

People without checking account use store-value cards often

Goldsmiths

The first bankers were probably

Insure the deposits in deposit institutions for up to $250,000

The job of the Federal Reserve Deposit Insurance Corporation (FDIC) is to

12

The number of Federal Reserve District banks is

Money with no essensual value. They are not redeemable for gold and silver

What is fiat money?

Barter works best

When we have double coincidence of wants

The chair of the Board of Governors

Which individuals among the following serve four-year terms?

The federal reserve has 12 regional banks. The board of Governors has 7 members who serve 14-year terms.

Which of the following is correct?

Check

Written instructions from a depositor to the bank