Macroeconomics Chapter 32
Unlock all answers in this set
Unlock answersquestion
The Federal Reserve System is divided into:
answer
-12 districts
question
What function is money serving when you use it when you go shopping?
answer
-a medium of exchange
question
Joe deposits $200 in currency into his checking account at a bank. The deposit is treated as:
answer
-no change in the money supply because the $200 in currency has been converted to a $200 increase in checkable deposits
question
Which group aids the Board of Governors of the Federal Reserve System in conducting monetary policy?
answer
-Federal Open Market Committee
question
The Federal Open Market Committee (FOMC) of the Federal Reserve System is primarily for:
answer
-setting the Fed's monetary policy and directing the purchase and sale of government securities
question
Members of the Federal Reserve Board of Governor's are:
answer
-appointed by the President to staggered 14-year terms
question
The use of a credit card is most similar to:
answer
-obtaining a short-term loan
question
One major advantage of money serving as a medium of exchange is that it allows society to:
answer
-escape the complications of barter
question
The functions of money are to serve as a:
answer
-unit of account, store of value, and medium of exchange
question
When a consumer wants to compare the price of one product with another, money is primarily functioning as a:
answer
-unit of account
question
The paper money or currency in the U.S. essentially represents:
answer
-a debt of the Federal Reserve System
question
How many members can serve on the Board of Governors of the Federal Reserve System?
answer
-7
question
One reason that \"near-monies\" are important is because:
answer
-they can be easily converted into money or vice versa, and thereby can influence the stability of the economy
question
Checkable deposits are:
answer
-debts of commercial banks and savings institutions
question
The Federal Reserve System was established by the Federal Reserve Act of:
answer
-1913
question
The main function of the Federal Reserve System is to:
answer
-control the money supply
question
The M(1) money supply is composed of:
answer
-checkable deposits and currency in circulation
question
To keep high inflation from eroding the value of money, monetary authorities in the United States:
answer
-control the supply of money in the economy
question
The paper currencies of the U.S. are also called:
answer
-Federal Reserve notes
question
What function is money serving when you deposit money in a savings account?
answer
-a store of value
question
The Federal Reserve Banks are owned by the:
answer
-member banks
question
The Federal Reserve System consists of which of the following?
answer
-Board of Governors and the 12 Federal Reserve Banks
question
The basic requirement for an item to function as money is that it be:
answer
-generally accepted as a medium of exchange
question
Which of the following items are included in money supply M(2) but not M(1)?
answer
-savings deposits
question
The currency or money of the United States, like those of other countries, is:
answer
-token money
