moneda

Which of the following were deemed by Congress in the early 20th century to be essential for an efficient banking system? Multiple select question. Centralization International involvement Freedom from regulation Decentralization Public control

Centralization Public control

Which of the following describe a time deposit? Multiple select question. A person can "cash in" a time deposit at any time without penalty. Financial institutions pay lower interest rates on time deposits than on MMDAs. A person will be severely penalized for withdrawing a time deposit prior to the withdrawal limitation date. Financial institutions pay higher interest rates on time deposits than on MMDAs.

A person will be severely penalized for withdrawing a time deposit prior to the withdrawal limitation date. Financial institutions pay higher interest rates on time deposits than on MMDAs.

Which of the following are direct roles of commercial banks? Multiple select question. Make available a wide variety of loans Invest money in the stock market Accept deposits of households and businesses Accept deposits and invests in mutual funds Keep money safe until demanded via checks

Accept deposits of households and businesses Make available a wide variety of loans Keep money safe until demanded via checks

What is the difference between how coins and paper money are issued? Multiple choice question. -Coins are issued by the US Treasury while paper money is issued by the Federal Reserve System. -There is no difference. -Coins are issued by the US Central Bank while paper money is issued by the Federal Reserve System. -Coins are issued by the Federal Reserve System while paper money is issued by the US Treasury

Coins are issued by the US Treasury while paper money is issued by the Federal Reserve System.

Checkable deposits are the debts or liabilities of which of the following? Multiple select question. Government Commercial banks Thrift institutions Federal Reserve Banks

Commercial banks Thrift institutions

An economy can effectively employ money as a unit of account only when its purchasing power is relatively stable because when it's not, buyers and sellers can't do what? Multiple choice question. Create fair agreements Establish the terms of trade clearly Openly trade goods and services Get government authorization to exchange

Establish the terms of trade clearly

Which of the following is a function of commercial bank loans? Multiple select question. Provide unemployment benefits to qualifying persons Finance consumer purchases of durable goods Provide supplementary income for low-income households Provide short-term financial capital to businesses

Finance consumer purchases of durable goods Provide short-term financial capital to businesses

Which of the following statements is true? Multiple choice question. Private firms and government are mandated to accept cash. General acceptance of paper currency is more important than the government's decree that money is legal tender. The government's decree that money is legal tender is more important than the general acceptance of paper currency. General acceptance of paper currency is equally as important as the government's decree that money is legal tender.

General acceptance of paper currency is more important than the government's decree that money is legal tender.

Money enables society to gain which of the following advantages? Multiple select question. Geographic specialization Ability to barter more effectively Human specialization Banking specialization

Geographic specialization Human specialization

Which of the following characterize near-monies? Multiple select question. Highly liquid Cannot be readily converted into currency Do not function directly as a medium of exchange Highly illiquid Can be readily converted into checkable deposits

Highly liquid Do not function directly as a medium of exchange Can be readily converted into checkable deposits

Which of the following results in the depreciation of a country's currency and may cause more stable currencies, such as the U.S. dollar or the European euro, to come into widespread use? Multiple choice question. Stabilization Purchasing power Hyperinflation Deflation

Hyperinflation

Which two of the following are necessary for price level stability? Multiple select question. High levels of investment spending Promotion of quick inflation Intelligent management of the money supply Careful management of interest rates

Intelligent management of the money supply Careful management of interest rates

Which of the following characterize an MMDA? Multiple select question. Non-interest bearing Interest-bearing Containing a variety of short-term securities Containing a variety of long-term securities

Interest-bearing Containing a variety of short-term securities

If the price level doubles, what happens to the value of the dollar? Multiple choice question. It declines by 200% It declines by 50%. It increases by 200% It increases by 50%

It declines by 50%.

Currency in the hands of the public and checkable deposits are components of ______. savings money market mutual funds M1 business assets

M1

Currency in the hands of the public and checkable deposits are components of ______. Multiple choice question. savings business assets M1 money market mutual funds

M1

What is the money in the form of currency and checkable deposits in commercial banks called? Multiple choice question. M1 S1 GDP S2

M1

A second and broader definition of money includes which of the following? Multiple choice question. M1 minus several near-monies M2 plus several near-monies M2 minus several near-monies M1 plus several near-monies

M1 plus several near-monies

What happens when the consumer price index, or "cost-of-living" index rises? Multiple choice question. The value of the dollar rises The purchasing power of the dollar stays the same The purchasing power of the dollar rises The purchasing power of the dollar falls

The purchasing power of the dollar falls

Why is currency held by the U.S. Treasury, the Federal Reserve Banks, commercial banks, and thrift institutions excluded from M1 and other measures of the money supply? Multiple choice question. Because it is not a mutual fund Because the U.S. Treasury rarely holds currency Because money does not have value when it is held by these institutions To avoid counting the same amount of money twice

To avoid counting the same amount of money twice

Who issues metal coins? Multiple choice question. Federal Reserve System US Treasury Commercial banks US Bureau of Engraving and Printing

US treasury

General_________ of paper currency in exchange is more important than the government's decree that money is legal tender.

acceptance

Currency held by commercial banks and thrifts is excluded from the money supply M1, so as to ______. Multiple select question. avoid double counting expand the definition of money increase the amount of credit available to individuals avoid counting money that is not available to the private sector

avoid double counting avoid counting money that is not available to the private sector

Because money is a medium of exchange, society avoids: barter paychecks the complications of having cash on hand materialism

barter

Token money consists of _____. Multiple choice question. -demand deposits -deposits made in savings institutions -checkable deposits of the government or the Federal Reserve -bills or coins with face values that exceed their commodity value

bills or coins with face values that exceed their commodity value

Which of the following is perfectly liquid? Multiple choice question. Cash Bonds Gold Stocks

cash

People can convert________ deposits into paper money and coins on demand.

checkable

The debts or liabilities of commercial banks and thrift institutions are known as_________ deposits.

checkable

The safety and convenience of ______ has made checkable deposits a large component of the M1 money supply. Multiple choice question. bonds paper money checks stocks

checks

Which of the following are primary depository institutions that accept deposits of households and businesses, keep money safe until it is demanded via checks, and in the meantime use it to make available a wide variety of loans? Multiple choice question. The Federal Reserve Banks Commercial banks Money markets Mutual fund companies

commercial banks

Which type of financial institution accepts deposits and lends to "members," who are usually a group of people working for the same company? Multiple choice question. Credit unions Mutual savings banks Savings and loan associations Commercial banks

credit unions

What is meant by the term "thrifts"? Multiple select question. Credit unions Commercial banks Mutual savings banks Checkable deposits Savings and loan associations

credit unions mutual savings banks savings and loan assosiations

__________ __________accept deposits from and lend to members, who usually are a group of people who work for the same company.

credit; unions

_______ ________accept deposits from and lend to members, who usually are a group of people who work for the same company.

credit;unions

Rapid declines in the value of a ______________ may cause it to cease being used as a medium of exchange.

currency

Which of the following are components of M1? Multiple select question. Currency Saving deposits Stock certificates Checkable deposits

currency checkable deposits

Which of the following are components of M1? Multiple select question. Currency Stock certificates Saving deposits Checkable deposits

currency checkable deposits

Because people accept them as money, Blank______ and Blank______ deposits are money. Multiple choice question. currency; saving currency; checkable certificates of deposit; saving certificates of deposit; checkable

currency; checkable

The value of money, like the economic value of anything else, depends on its____ and____ .

demand and supply

When the consumer price index, or "cost-of-living" index rises, the purchasing power of the dollar goes (up/down).

down

Money is a medium of_________ that is used for buying and selling goods and services.

exchange

Money functions primarily as a medium of_______ , a unit of________ , and a store of value.

exchange ; account

True or false: Money supply M1 includes all components of M2.

false

True or false: Society can attain a higher degree of specialization without the use of money than it can with money.

false

In the United States, the monetary authorities are members of the Board of Governors of the______________________ System.

federal reserve

Paper money or currency in the United States represents whose debt? Multiple choice question. Thrift institutions Corporations Federal Reserve Banks Commercial banks

federal reserve banks

Who issues paper money? Multiple choice question. Federal Reserve System United States Mint US Treasury World Bank

federal reserve system

Who issues paper money? Multiple choice question. Federal Reserve System United States Mint World Bank US Treasury

federal reserve system

Which of the following are examples of assets other than money that hold wealth? Multiple select question. Real estate Credit cards Gold Mortgage loans Stocks

gold real estate stocks

The money supply in the United States essentially is "backed" by whose ability to keep the value of money relatively stable? Multiple choice question. Credit unions Government Commercial banks Stock market

government

Paper currency and checkable deposits have no (intrinsic/extrinsic) value.

intrinsic

What is the nature of the relationship between the amount of goods and services a dollar will buy and the price level? Multiple choice question. Equal Half There is no relationship Inverse

inverse

Rapid declines in the value of a currency may cause ______. Multiple choice question. inflation it to cease functioning as a medium of exchange it to appreciate against other global currencies interest rates to rise significantly

it to cease functioning as a medium of exchange

Our confidence in the acceptability of paper money is strengthened because the government has designated currency as what? Multiple choice question. Credit cards Legal tender Checkable deposits Certificates of deposit

legal tender

Our confidence in the acceptability of paper money is strengthened because the government has designated currency as what? Multiple choice question. Legal tender Credit cards Certificates of deposit Checkable deposits

legal tender

Cash is perfectly accessible or perfectly________ (one word).

liquid

An asset's ______ is the ease with which it can be converted quickly into the most widely accepted and easily spent form of money, cash, with little or no loss of purchasing power. Multiple choice question. security liquidity extrinsic value intrinsic value

liquidity

The ease with which an asset can be converted quickly into cash, with little or no loss of purchasing power, is called what? Exchange Liquidity Convertibility Checkable deposit

liquidity

Commercial bank______ provide short-term financial capital to businesses, and the financing of consumer purchases such as durable goods.

loans

Money is used for buying and selling goods and is therefore considered what? Multiple choice question. A checkable deposit A medium of exchange Debt Not very liquid

medium of exchange

A "stock" of some item or group of items is called what? Multiple choice question. Economics Money Investment Income

money

A key advantage of______ is that it is the most liquid or spendable of all assets.

money

A unit of account is a function of what? Multiple choice question. Money Liquidity Checkable deposits Barter

money

The government has chosen to give itself the ability to freely manage the nation's______________ supply by choosing not to back it with anything tangible.

money

The supply of _________ in the United States essentially is "backed" (guaranteed) by the government's ability to keep its value relatively stable. Multiple choice question. loans precious metals money credit cards

money

The supply of _________ in the United States essentially is "backed" (guaranteed) by the government's ability to keep its value relatively stable. credit cards loans money precious metals

money

Which of the following is the most liquid asset?

money

A _____ is an interest-bearing account containing a variety of interest-bearing short-term securities. Multiple choice question. checking deposit account money market deposit account certificate of deposit account savings deposit account

money market deposit account

M1 is a component of the U.S. ______. Multiple choice question. investments durable goods imports money supply

money supply

Which of the following are certain highly liquid financial assets that do not function directly or fully as a medium of exchange but can be readily converted into currency? Multiple choice question. Capital assets Checkable deposits Near monies Paper money

near monies

Prior to the centralization and public control of U.S. banks, who was charged with creating and implementing nationally consistent banking policies? Multiple choice question. The FDIC The Department of Treasury No single entity The Federal Reserve System

no single entity

The government has chosen to give itself the ability to freely manage the nation's money supply by choosing ______. Multiple choice question. to allow banks to back the currency to back the currency with checkable deposits to back the currency with gold not to back the currency with anything tangible

not to back the currency with anything tangible

In the United States,___________ money is the circulating debt of the Federal Reserve Banks.

paper

The___________ power of money is the amount of goods and services a unit of money will buy.

purchasing

Which of the following characteristics of checks has made checkable deposits a large component of the M1 money supply? Multiple select question. Extrinsic value Convenience Safety Intrinsic value

safety convenience

Money derives its value from its________ relative to its utility (its want-satisfying power).

scarcity

Money is a ______ of some item or group of items. Multiple choice question. flow function checkable deposit stock

stock

Savings and loan associations, mutual savings banks, and credit unions are known collectively and specifically as ______. Multiple choice question. government institutions federal banks commercial banks thrift institutions

thrift institutions

A deposit in a commercial bank or thrift institution that earns interest and can be withdrawn by the depositor without penalty at the end of a specific period is a ______ deposit. Multiple choice question. checkable savings account money market time

time

Currency that derives its value from the amount printed on it rather than from the value of the paper or metal from which it is made is referred to as ______ money. Multiple choice question. near token checkable interest-bearing

token

Money serves as a store of value that enables people to ______. Multiple choice question. transfer purchasing power from the present to the future transfer purchasing power from the future to the present exchange it for an equal amount of gold keep purchasing power in the present only

transfer purchasing power from the present to the future

Metal coins are issued by the US_______

treasury or mint

True or false: Hyperinflation may cause stable currencies such as the U.S. dollar or the European euro to come into widespread use because a country might adopt a stable currency as its own official currency.

true

True or false: People can convert checkable deposits into paper money and coins on demand.

true

True or false: The currency of the United States consists primarily of metal coins and paper money.

true

When people measure the worth of various items in terms of money, money is performing the function of a what? Multiple choice question. Medium of exchange Liquid asset Unit of account Store of value

unit of account

Money derives its value from its scarcity relative to its ______. Multiple choice question. availability cost utility supply

utility

Money derives its value from its scarcity relative to its ______. Multiple choice question. supply cost utility availability

utility

By not backing currency, the government has the ability to provide as much or as little money as needed to maintain the_________________ of money and to best suit the economic needs of the country.

value

Money serves as a store of_______ that enables people to transfer purchasing power from the present to the future.

value

Real estate, stocks, bonds, and gold are examples of assets other than money that hold______

value

An economy can effectively employ money as a unit of account only when its purchasing power is what? Multiple choice question. Federally regulated Relatively stable Increasing Checkable

Relatively stable

Which of the following are benefits of the government's decision to not back currency? Multiple select question. The ability to provide as much or as little money as needed to maintain the value of money The ability to provide as much or as little money as needed to maintain the value of gold The ability to provide as much or as little money as the availability of gold permits The ability to provide as much or as little money as needed to best suit the economic needs of the country

The ability to provide as much or as little money as needed to maintain the value of money The ability to provide as much or as little money as needed to best suit the economic needs of the country

How does money enable society to avoid the complications of barter? By acting as a unit of account By acting as a store of value By acting as a medium of exchange By acting as a method of lending

By acting as a medium of exchange

How does money enable society to avoid the complications of barter? Multiple choice question. By acting as a method of lending By acting as a unit of account By acting as a medium of exchange By acting as a store of value

By acting as a medium of exchange

Why are currency and checkable deposits money? Multiple choice question. Because they are widely accepted by people Because they are printed by the Treasury Department Because they are printed by the US Mint Because they indicate a specific dollar amount

Because they are widely accepted by people

Why is there an inverse relationship between the purchasing power of the dollar and the price level? Multiple choice question. Because when the price level rises, less dollars are needed to buy a particular amount of goods, services, or resources Because when the price level rises, the same amount of dollars are needed to buy a particular amount of goods, services, or resources Because when the price level rises, more dollars are needed to buy a particular amount of goods, services, or resources Because when the price level rises, the value of the dollar also rises

Because when the price level rises, more dollars are needed to buy a particular amount of goods, services, or resources

Which of the following are functions of money? Multiple select question. Hedge against inflation Medium of exchange Store of value Unit of account

Medium of exchange Store of value Unit of account

Which of the following have no intrinsic value? Multiple select question. Gold and silver Paper currency Checkable deposits Coins

Paper currency Checkable deposits

Which of the following comprise the currency of the United States? Multiple select question. Paper money Metal coins Small time deposits Checkable deposits

Paper money Metal coins