Exam 2: Money and the Monetary System

Paper money fully backed by a precious metal and issued by the government is called:

All of the following are important components of a financial system except:

M3 includes all of the following EXCEPT:

In the U.S. ,the dollar was defined in terms of gold until the:

Any circulating money which has little real value relative to its monetary value is called:

Inflation reflects a rise in prices whether or not that rise in prices is offset by an increase in quality.

Deposit money is backed by:

A major international development occurred on January 1,2002,when twelve European countries gave up their individual currencies and adopted a unified currency called the _____________.

Currently,the international monetary system can best be described as a managed floating exchange rate system.

No full-bodied or representative full-bodied money is in use in the United States today.

A measure of the output of goods and services in an economy is called:

_______________________ is the sum of an individual's money,real assets,and financial assets or claims against others less the individual's debt obligations.

The advantages claimed for a bimetallic standard were not gained in actual practice because:

A rise in prices that is fully offset by increases in quality is called:

Today's Federal Reserve notes are:

A bimetallic standard is a monetary standard based on gold.

_____________ is a short-term debt security sold by a business firm or financial institution to another business or institution where the seller agrees to buy back the security at a specified price and date.

An international gold standard dominated international trade during:

Which of the following statements is false?

Most of the financial assets added to the M2 definition of money supply provide their owners with a higher rate of return than do M1 financial assets.