Chapter 20: Economics Flashcards
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__________ occurs when goods are traded directly for other goods.
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barter
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__________ represents the most commonly used definition of the money supply.
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M-2
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Open-market operations involve:
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the buying and selling of bonds.
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The banking panic of 1907 and the resulting cash shortage led to the formation of the:
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Federal Reserve System.
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Traditionally, banks provide loans to individuals and companies according to the recipient's _____________.
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creditworthiness
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Which of the following represent an independent agency of the U.S. government that insures bank deposits?
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Federal Deposit Insurance Corporation
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The ________ provides the same results as a check because it withdraws funds from a checking account.
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debit card
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A __________ represents an agreement by a bank to pay a foreign company a given amount if certain conditions are met.
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letter of credit
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The World Bank provides funding for:
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projects to improve the standard of living in less-developed nations.
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Which of the following represents a benefit of coins over paper money?
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Improved durability
