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43 Cards in this Set
- Front
- Back
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It is important for money to be durable because....
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it must be able to withstand the wear and tear of use
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The Federal Reserve System was established to...
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control the amount of money in circulation
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Near moneys include...
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time deposits
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Representative money is money that is...
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backed by a valuable item, such a gold
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What is the purpose of the Coinage Act of 1792?
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it established the dollar as the basic unit of currency for the United States
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The Federal Reserve System can affect the money supply by...
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changing reserve requirements
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The number of Federal Reserve district banks is...
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12
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Which type of institution must belong to the Federal Reserve?
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national banks
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The main tool that the Fed uses to affect interest rates is...
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open market operations
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When credit is inexpensive and easy to obtain, the Fed is probably using a...
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loose money policy
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Deficit financing is...
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government overspending
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Programs aimed only at people who are poor or disabled are known as...
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public assistance programs
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Property taxes, which are based on a percentage of a home's value, are an example of...
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the ability to pay principle
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Since the end of World War II, the size of the U.S. government has...
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grown much faster than the population
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Single parents in need of aid to raise their young children may qualify for...
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Temporary Assistance to Needy Families
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What is fiat money?
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money that has value because the government has established it as acceptable for payment of debts
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What is money?
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anything customarily used as a medium of exchange, a unit of accounting, or a store of value
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What is legal tender?
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money that by law must be accepted for payment of public and private debts
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What is a barter?
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exchange of goods and services for other goods and services
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What is commodity money?
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mediums of exchange that have value as goods aside from their value as money
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A seller accepting money for a service reflects the use of money as...
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a medium of exchange
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Money that is a measure of value function as...
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a unit of accounting
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Placing money in a checking account is an example of using money as....
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a store of value
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Money that is durable...
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can withstand wear and tear
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All money in the U.S. today is...
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fiat money
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What is an automated teller machine?
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a unit that allows consumers to do their banking without the help of a teller
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What is overdraft checking?
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account that allows a customer to write a check for more money than exists in the account
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What is an electronic funds transfer?
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the transferring of funds from one bank account to another without any paper money changing hands
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What are service charges?
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fees that banks charge on checking accounts
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What is a monetary standard?
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way in which a nation assigns value to money
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The phrase "not worth a Continental" referred to money issued during the...
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Revolutionary War
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In which year did Congress pass the Coinage Act, establishing the dollar as the basic unit of currency for the nation?
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1792
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What may vary according to each state's banking laws?
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service charges
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Electronic funds transfer was made possible by...
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the use of a computer
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One drawback to electronic banking is lack of...
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privacy
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What are near moneys?
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assets that can be turned into money relatively easy
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What is a M2?
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a broader definition of the money supply
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Most U.S. currency today is in the form of...
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Federal Reserve notes
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The M1 definition of the money supply includes all currency, checkable deposits, and...
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traveler's checks
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Explain Loose Money Policy
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-economy is "expansionary"
-credit is abundant and inexpensive to obtain -encourages economic growth |
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Explain Tight money policy
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-economy is 'contractionary"
-credit is in short supply and expensive to obtain -controls inflation |
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Explain M1
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includes all currencies, checkable deposits, and traveler's checks
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Explain M2
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includes all items in M1 and savings deposits, small denomination time deposits, money market deposit accounts, retail money market mutual funds and other more specialized accounts balances
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