question

The Federal Reserve is responsible for issuing currency

answer

True

question

Checkable deposits held in saving and loan institutions, mutual savings banks, and credit unions are part of the M1 definition of the money supply

answer

True

question

\"Legal tender\" is another name for fiat money

answer

True

question

The Federal Reserve System has twelve Federal Reserve Districts

answer

True

question

Mutual Savings Banks were owned by the depositors.

answer

True

question

A small time deposit is one that is less than $100,000.

answer

True

question

A checking account is another name for a time deposit.

answer

False

question

There are about 50,000 commercial banks in the United States.

answer

False

question

One of the three basic functions of money is to serve as legal tender.

answer

false

question

A new member to the Board of Governors is appointed every two years

answer

True

question

Without an acceptable domestic currency to serve as a medium of exchange, a nation might try to substitute a more stable currency from another nation.

answer

True

question

There are 25 branch bank cities in the Federal Reserve System.

answer

False

question

Currency and coins held by banks are part of the M1 definition of money supply.

answer

False

question

Credit cards are treated as money because they facilitate transactions.

answer

False

question

The 12 Federal Reserve Districts issue paper money called Federal Reserve Notes

answer

True

question

The current chairman of the Federal Reserve system is Alan Greenspan

answer

False

question

The President of the New York Federal Reserve District is a permanent member of the Federal Open Market Committee.

answer

True

question

The M2 money supply may be larger or smaller than the M1 money supply depending on the size of small time deposit balances and Money Market Mutual Fund balances held by individuals.

answer

false

question

The Federal Open Market Committee (FOMC) is made up of the presidents of the Federal Reserve Banks, the Secretary of the Treasury, and the chair of the President's Council of Economic Advisers.

answer

False

question

The value of money in the United States is based on the stocks of precious metals held by the United States government.

answer

False

question

Thrifts are known as \"banker's banks\" because they lend money to commercial banks

answer

False

question

Too much money in the nation's economy leads to a general rise in prices, or deflation.

answer

False

question

Depository institutions are a major source of money in the U.S. economy.

answer

True

question

One function of the Federal Reserve System is supplying check to banks and their customers.

answer

False

question

The M2 money supply is larger than the M1 money supply.

answer

True

question

If a coin is token money, its face value is greater than its intrinsic value.

answer

True

question

Each member of the Board of Governors serves a 14 year term.

answer

True

question

Approximately $450 billion of U.S. currency is circulating in foreign countries.

answer

False

question

The United States Treasury Department has a checking account with the Federal Reserve System.

answer

True

question

The twelve Federal Reserve Banks are governmentally owned but privately controlled

answer

False

question

The percentage share of total U.S. financial assets held by commercial banks and thrifts has increased since 1980.

answer

False

question

Federal Reserve Banks are bankers' banks

answer

True

question

The United States Treasury is the only source of money in the U.S. economy.

answer

False

question

Money held as cash earns interest.

answer

false

question

Assets are anything of value that a bank may own.

answer

false. not just a bank can have assets

question

The number of U.S. banks has increased since 1990.

answer

False

question

The M1 money supply is composed of currency, checkable deposits, and time deposits.

answer

False

question

The Department of the Treasury is responsible for manufacturing money.

answer

True

question

A savings account is another name for a demand deposit.

answer

false

question

The gold standard is a system in which a nation's paper currency is backed by gold.

answer

True

question

The chairman of the Federal Reserve System serves a four year term and may be reappointed by the President of the United States.

answer

True

question

\"The Fed\" is the common name for the Federal Reserve system.

answer

True

question

Electronic money and smart cards will increase the problems for the Federal Reserve in controlling the money supply.

answer

True

question

The Federal Deposit Insurance Corporation covers bank deposits up to $250,000.

answer

true

question

A bank statement of assets and liabilities is called a balance sheet.

answer

True

question

M2 assets are also called near money.

answer

true

question

Required reserves is that percentage of deposits that banks have to keep in the bank at all times.

answer

True

question

Houston is the headquarters city of District 11 of the Federal Reserve System.

answer

False

question

Open market operations are the most commonly used tool of Fed monetary policy.

answer

True

question

Fidelity, Putnam, Dreyfus, and Kemper are examples of mutual fund companies.

answer

True

question

All nationally chartered banks in the United States are required to join the Federal Reserve System.

answer

True

question

Since the 1980s, banks and thrifts have lost their share of the financial services industry and control over financial assets.

answer

True

question

The President of the United States appoints the chairmen of the Federal Reserve System and the nominee must be confirmed by the Supreme Court.

answer

False

question

The Federal Open Market Committee (FOMC) serves as the fiscal agent for the U.S. government.

answer

False

question

Savings and Loans are also called thrifts.

answer

True

question

The currency owned by commercial banks is included in the money supply.

answer

False

question

The Federal Reserve is prohibited from lending money to banks and thrifts.

answer

False

question

The Federal Reserve System was created by Congress in 1913.

answer

True

question

M1 consists of assets that can be used as or directly converted to cash.

answer

True

question

The Federal Reserve Note is the paper currency of the United States.

answer

True

question

In the United States, all money is essentially the debt of government, commercial banks, and thrift institutions.

answer

True

question

When you use money to purchase groceries, money is functioning as a store of value.

answer

False

question

Tightening the money supply cause interest rates to decrease.

answer

False

question

From 1980 to 2005, pension funds, insurance companies, and securities-related firms increased their share of financial assets relative to banks and thrifts.

answer

False

question

The Federal Open Market Committee (FOMC) regulates markets and enforces antitrust laws to keep markets open and competitive

answer

False

question

The M2 money supply equals M1 minus small time deposits plus Money Market Mutual Fund balances held by individuals.

answer

false

question

The value of money varies inversely with the price level.

answer

True

ECON Ch. 31 True/False; I got 61/67 correct. take your chances

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