Unit 4 Quiz #1

Front 1

exchange of one good for another

Back 1

barter

Front 2

Barter requires a coincidence of __________

Back 2

wants

Front 3

With the barter system you pretty much have to be a __________; barter system is primarily __________

Back 3

farmer, agricultural

Front 4

__________ allows you to specialize in an area you want to.

Back 4

Money

Front 5

Functions of Money that you have to have:
1. Medium of __________
- Primary function
- __________ acceptance
2. Unit of __________
- Measures the relative value of
__________ and __________
3. __________ of Value
- Absent from __________
- Threatened by __________

Back 5

Exchange, wide, account, goods, services, store, barter, inflation

Front 6

Other Desirable Properties of Money that you don't necessarily need:
1. Scarcity
- Threatened by __________
- U.S. __________ was
created by Abraham Lincoln
just for this.
2. Must be __________ and
__________
3. __________

Back 6

counterfeiting, Secret Service, portable, divisible, uniformity

Front 7

a type of money that has a market value in other uses

Back 7

commodity money

Front 8

a type of money that is accepted by law and has no intrinsic value

Back 8

fiat money

Front 9

fiat is latin for __________

Back 9

let it be

Front 10

Money Supply Measurements:
M1 = __________+__________
M2= ____ + __________+ __________

Back 10

Currency, Checkable Deposits

M, Savings Deposits, Small Time Deposits (<100,000)

Front 11

The central bank of the U.S. founded in 1913 following the Bank Panic of 1907

Back 11

The Federal Reserve System

Front 12

The fed is independent of the __________, has a __________ report to Congress, but isn't __________ by Congress. Congress can __________ the Fed.

Back 12

government, biannual, funded, abolish

Front 13

There are __________ district banks in the Fed. Kansas City, MO houses the __________ district.

Back 13

12, 10th

Front 14

The Board of Governors have __________ members, where 1 is the __________.

Back 14

7, chairperson

Front 15

The members of the Board of Governors are appointed for ___ year, nonrenewable terms. The chairperson is nominated for a ___ year, renewable term.

Back 15

14, 4

Front 16

Most Recent Fed Chairs
1.
2.
3.

Back 16

Paul Volcker
Dr. Alan Greenspan
Dr. Ben Bernanke

Front 17

Federal Open Market Committee (FOMC)
____+__________+__________

The FOMC controls the money supply through the buying and selling of __________.

Back 17

BOG, NY Fed President, 4 other Fed District Presidents, T-Bills

Front 18

Other Functions of the Fed:
1. __________ money
2. __________ banks
- Ex: FDIC
3. __________ protection
- Consumer complains, Equal
Credit Opportunity Act,
Bureau of Consumer
Financial Protection
4. __________ Checks
5. Maintaining the __________
account of the U.S.
government
6. Maintaining the __________
supply

Back 18

circulating, regulating, consumer, clearing, checking, gold

Front 19

Bank only keeps a fraction of what you deposit

Back 19

Fractional Reserve Banking