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Unformatted text preview: Fin 307 L. Pierson Doti Fall 06 Miller and Van Hoose 3rd Study Questions Chapters 1 to 6 Money Chapter 1 1) Define money. 2) Describe the four functions of money. 3) Describe the different types of money. 4) Explain how a commodity standard works. 5) Explain why coins have been a popular type of money. 6) Describe the evolution of money from commodity to fiat. 7) 7) What characteristics make good money? h. What is the most common form of money in the world today? i. Why is credit not money? 10) 10) Why measure money? 11) 11) Define the following US measures of money Monetary Base Currency M1 M2 12) What is liquidity? 13) Explain the difficulty of measuring the quantity of money in a digital economy. 14) What is your opinion of the golden dollar? Take the interactive quiz at http://money.swcollege.com Words to Know Chapter 1 Automated Clearing Houses Bank note Banking Double coincidence of wants Barter Bimetallic standard Cash Checking account Coins Commodity money Commodity standard Continental Currency board Demand deposits Depository institutions Electronic money Electronic payments Eurodollars Federal Reserve note Fiat money Fiduciary Fungible Gold standard Golden dollar Greenbacks Large denomination time deposits 1 Fin 307 L. Pierson Doti Fall 06 Miller and Van Hoose 3rd Liquidity M1 M2 Medium of exchange Monetary aggregate Monetary base Money Money market mutual funds POS transfers Repurchase agreements Reserves Savings deposits Seigniorage Small denomination time deposits Standard of deferred payment Store of value Transaction deposits Unit of account Take the interactive quiz at http://money.swcollege.com Digital Banking Chapter 2 1) Explain: e-cash, e-money, digital money....
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- Spring '08