Chapter 32 (Final Exam)

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  1. Which one is an economic function of money?
    A unit of account
  2. Each month, Marti puts a certain percentage of her income in a bank account that she plans to use in the future to purchase a car. For Marti, the money saved in the bank account is primarily functioning as...
    store of value
  3. Which one of the following items would be considered to be perfectly liquid from an economic perspective?
  4. Which one of the following is included in the currency component of M1?
    Federal Reserve Notes
  5. Checkable deposits are money because they are
    a medium of exchange
  6. To keep the purchasing power of money fairly stable, the Federal Reserve,
    controls the money supply
  7. The members of the Board of Governors of the Federal Reserve System are appointed by...
    the U.S. president and confirmed by the Senate
  8. The Board of Governors and 12 Federal Reserve Banks as a system serve as...
    a central bank
  9. The 12 Federal Reserve Banks are...
    privately owned but publicly controlled
  10. The Federal Open Market Committee (FOMC) of the Federal Reserve System is primarily responsible for...
    setting the Fed's monetary policy and directing the buying and selling of government securities.
  11. The Federal Reserve is responsible for...
    holding the required reserves of banks and thrifts
  12. The most important function of the Federal Reserve is...
    controlling the money supply
  13. Image Upload
    The size of the M1 money supply is...
  14. Image Upload
    The size of the M2 money supply is...
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Chapter 32 (Final Exam)
2016-11-29 20:23:39
Chapter 32 Final Exam
Chapter 32 (Final Exam)
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