Chapters 11 and 15 Test Review Questions made by students

Chapter 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  B  C  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  B  C  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  B  C  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  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  B  C  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