Exam 14: Money, Banking, and Financial Institutions

The "bail-out" money that went to giant financial institutions like Citibank and Goldman Sachs, along with General Motors and Chrysler during the Financial Crisis and the Great Recession, came from the:

Use the following table to answer the question about the money supply given the following hypothetical data for an economy. Refer to the table above. The size of the M2 money supply is:

To keep high inflation from eroding the value of money, monetary authorities in the United States:

The government bail-out of large institutions creates the problem of moral hazard, which means that these large firms will:

Which of the following bank-related policies of the Fed fosters huge moral hazard problems:

The Federal Reserve System is divided into:

Holding the money deposits of businesses and households and making loans to the public are the basic functions of:

The Federal Open Market Committee (FOMC):

One major advantage of money serving as a medium of exchange is that it allows society to:

Which of the following functions of money enables society to gain the benefits of geographic and labor specialization?

Joe deposits $200 in currency into his checking account at a bank. This deposit is treated as:

Which of the following trends had been happening in the banking industry even before the Financial Crisis of 2007-2008?

The paper currencies of the U.S. are also called:

Using a debit card is like writing a check; the amount will be deducted from one's checking account.

If product prices were stated in terms of tobacco leaves, then tobacco leaves would be functioning primarily as:

The consolidation in the financial industry into fewer and larger firms:

The TARP loans and the Fed's lender-of-last-resort actions that bailed out large, failing financial institutions helped reduce the moral-hazard problem in financial management.

The Glass-Steagall Act of 1933 required:

The Financial Crisis of 2007-2008 halted the consolidation in the U.S. financial industry that had caused a declining number but increasing size of firms in the industry prior to the crisis.

With token money, the face value is greater than the intrinsic value.