chapters 11 and 15 test review questions made by students
TRANSCRIPT
Chapters 11 and 15 Test Review
Questions made by students
Chapter 11 -- Money
Questions made by students
Which was not once a form of currency?
A. Wampum B. Silver C. Salt D. Grass
What is a characteristic of money?
A. Portability B. Durability C. Divisibility D. All of the above
What is a barter economy?
A. A man named Barter that started an economy
B. Economy based on trading C. Economy based on banking D. Moneyless economy that relies on
trading
Which is NOT a characteristic of money?
A. Durability B. Unlimited availability C. Portability D. Divisibility
What is a medium of exchange?
A. Place where money is traded B. Something accepted by everyone
for goods and services C. A type of currency D. All of the above
Gold certificates were issued in
A. 1886 B. 1863 C. 2002 D. 600 B.C.
What is an advantage of the gold and silver standards?
A. Value of gold is not fixed B. Prevents the gov’t from printing
too much money C. Gold stock could not keep up with
growth D. Shoe laces
There were about __ currencies before we had a national currency.
A. 8,000 B. 9,000 C. 10,000 D. 11,000
When was the Euro put into circulation?
A. 1992 B. 2000 C. 1999 D. 2002
An asset is
A. What the bank owes B. What the bank owns C. Money that can be loaned D. Money that can’t be loaned
When was the first known coin minted?
A. 500 B.C. B. 600 B.C. C. 900 B.C. D. 800 B.C.
Money is
A. Medium of exchange B. Measure of value C. Store of value D. All of the above
The characteristics of money include the following EXCEPT:
A. Durability B. Acceptability C. Portability D. Divisibility
The common denominator that can used to express worth
A. Measure of value B. Store of value C. Medium of exchange D. Barter economy
Which of the following is an advantage of the gold and silver standard?
A. Value of gold is not fixed B. Gold stock could not keep up with
the economy C. Portability D. People felt secure
Currency is made up of
A. Bills B. Coins C. Leaves D. Both A and B
Which of the following is not a characteristic of money?
A. Limited availability B. Divisibility C. Portability D. Transferability
Which characteristic of money “makes change?”
A. Portability B. Divisibility C. Durability D. Limited availability
Liabilities are
A. The percent of money that can’t be loaned
B. What the bank owes C. Money that can’t be loaned D. A potatoe
When was the Euro put into circulation?
A. 1992 B. 2000 C. 1999 D. 2002
What prevented wampum from being used more?
A. They broke easily B. People painted them black to be
considered more valuable C. They were easily stolen D. The supply ran short
Chapter 15 – The Federal Reserve
Questions made by students
Who sets the discount rate?
A. RB B. BoG C. FOMC
The Fed can expand or contract the money supply by influencing the cost of credit is called
A. Monetary policy B. Prime rate C. Discount rate D. Easy money policy
What is the required reserve?
A. Used to loan each other in the FFR B. Amount of money the banks have
to keep in the vault C. Money that can be loaned D. The interest rates banks charge
each other for overnight loans
What is the prime rate?
A. .25 B. .5 C. 3 D. 3.25
What is the policy the Fed uses to make the money supply grow?
A. Tight money policy B. Hard money policy C. Easy money policy D. Loose money policy
The window of last resort for banks. Banks do not like to use it.
A. Discount rate B. Free rate C. Window rate D. Federal funds rate
The Board of Governors has ? members.
A. 12 B. 25 C. 7 D. 5
The FFR is currently
A. .25 B. .50 C. 3.25 D. 10
What is a tight money policy used for?
A. To reduce inflation B. Make people borrow more C. Lower interest rates D. Make the money supply grow
Who can VOTE in the FOMC?
A. 7 members of the BoG, NY pres. and 4 rotating bank pres
B. 5 members of BoG, LA pres. and 3 rotating bank pres
C. 3 members of the BoG, NY pres. and 2 rotating bank pres
D. 8 members of the BoG, CA pres. and 4 rotating bank pres
There are ___ RBs.
A. 5 B. 7 C. 12 D. 25
The Federal Reserve was created in
A. 1945 B. 1860 C. 1913 D. 2002
Which of the following is not part of the FED?
A. FOMC B. Congress C. BoG D. Reserve Banks
What is the money multiplier?
A. rr/1 B. 3/rr C. 1/er D. 1/rr
Writes regulation for the Federal Reserve?
A. FOMC B. RB C. BoG D. none of the above
How does the FED expand or contract the money supply?
A. by printing more or less money B. by influencing the cost of credit C. by borrowing money from China D. it cannot influence the money
supply
The interest rate banks charge their most credit worthy members:
A. savings multiplier B. prime rate C. discount rate D. federal funds rate