Exam 18: Money and the Federal Reserve System

Comparing how many dollars it takes you to run your car each year to annual earnings on a job instead of keeping track of costs in terms of gallons of gasoline and quarts of oil represents the use of money as a:

If something is a medium of exchange, then it:

M1 is actually a smaller amount than M2.

Credit cards are:

Which of the following assets is the most liquid?

Who runs the Federal Reserve System? Describe the organizational structure of the Fed.

Decisions regarding purchases and sales of government securities by the Fed are made by the:

Which of the following is not part of M1?

What is money? What are the three definitions of money in the United States?

Which of the following defines the "store of value" function of money?

Most commercial banks belong to the Federal Reserve System.

The Federal Reserve System was founded in:

The M1 money supply is defined to be the sum of currency, and:

Although the chairman of its Board of Governors is appointed by the Treasury Department, the Fed operates with considerable independence from the executive branch of the government.

What establishes the value of fiat money?

The ease with which an asset can be converted into a medium of exchange is known as:

The Federal Reserve System was created by act of Congress in 1931 in an effort to end a wave of bank failures brought on by the Great Depression.

The Federal Reserve Board of Governors has:

In order for barter to occur, traders must have a:

One hundred dollars on deposit in a checking account represents the use of money as a: