WORKSHEET 3

WORKSHEET 3 - country will have if there are 173...

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WORKSHEET 3 Recitation for Economics 2020-300 – Principles of Macroeconomics Spring 2008 This worksheet covers: Chapter 16 – The Monetary System 1. What are the three functions of money? 2. What does “Liquidity” mean? 3. Define “fiat money:” 4. Which of the following is a store of value? a. currency b. U.S. government bonds c. fine art d. All of the above are correct. 5. When you put money in a cookie jar, which function of money are you using? a. store of value b. medium of exchange c. unit of account d. None of the above is correct.
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6. Define the four different measures of the money stock. 7. Suppose there are two countries, Retrab and Yenom. Retrab adopts a barter system to exchange goods, while Yenom uses money as the unit of account in their economic transactions. Calculate how many exchange rates each
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Unformatted text preview: country will have if there are 173 commodities in each country. 8. What are the functions of the Federal Reserve System? 9. The Board of Governors: a. is currently chaired by Ben Bernanke b. are appointed by the president and confirmed by the Senate. c. has seven members. d. All of the above are correct. 10. Which of the following is correct? a. The Federal Reserve has 14 regional banks. The Board of Governors has 12 members who serve 7 year terms. b. The Federal Reserve has 12 regional banks. The Board of Governors has 7 members who serve 14-year terms. c. The Federal Reserve has 12 regional banks. The Board of Governors has 14 members who serve 7-year terms. d. None of the above is correct....
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This note was uploaded on 02/28/2008 for the course ECON 2010 taught by Professor Mertens,wi during the Fall '07 term at Colorado.

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WORKSHEET 3 - country will have if there are 173...

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