To say money is socially defined means that: |
whatever performs the functions of money extremely well is considered to be money. |
If you place a part of your summer earnings in a savings account, you are using money primarily as a: |
store of value. |
In the United States, the money supply (M1) is comprised of |
coins, paper currency, and checkable deposits. |
The money supply is backed: |
by the government's ability to control the supply of money and therefore to keep its value relatively stable. |
. In defining money as M1, economists exclude time deposits because: |
they are not directly or immediately a medium of exchange. |
Checkable deposits are: |
included in M1 |
Checkable deposits are classified as money because: |
they can be readily used in purchasing goods and paying debts. |
Paper money (currency) in the United States is issued by the: |
Federal Reserve Banks. |
The largest component of the money supply (M1) is: |
currency in circulation. |
In January 2008, the supply of money (M1) in the United States was about: |
$1365 billion. |
If P equals the price level expressed as an index number and $V equals the value of the dollar, then: |
$V = 1/P. |
If the price index rises from 100 to 120, the purchasing power value of the dollar: |
will fall by one-sixth. |
The basic policy-making body in the U.S. banking system is the: |
Board of Governors of the Federal Reserve. |
The seven members of the Board of Governors of the Federal Reserve System are: |
appointed by the President with the confirmation of the Senate. |
The twelve Federal Reserve Banks: |
hold the reserve deposits of commercial banks. |
The Federal Reserve System is owned by: |
National Banks |
The group that sets the Federal Reserve Systems policy on buying and selling government securities (bills, notes, and bonds) is the: |
Federal Open Market Committee (FOMC). |
. An important routine function of the Federal Reserve Bank is to: |
provide facilities by which commercial banks and thrift institutions may collect checks. |
Which of the following is the basic economic policy function of the Federal Reserve Banks? |
controlling the supply of money |
The Federal Deposit Insurance Corporation (FDIC) insures deposits up to $250,000 in: |
commercial banks and thrifts. |
The members of the Federal Reserve Board: |
serve 14-year terms |
To say that the Federal Reserve Banks are quasi-public banks means that: |
they are privately owned, but managed in the public interest. |
The Federal Reserve System: |
is basically an independent agency. |
Bank and thrift assets have declined significantly since 1980. They have responded to their relative declines by: |
expanding their services and merging with one another. |
The Financial Services Modernization Act of 1999 |
permitted banks, thrifts, pension companies, and securities firms to merge and to sell each other's products. |
Major countries in which citizens hold and use large quantities of U.S. dollars are |
Russia, Argentina, and Turkey |
The use of U.S. dollars in foreign countries: |
helps foreign buyers and sellers overcome problems with their domestic currencies. |