Chapter 16 Money and the Banking System 161 What Is Money 1 The supply of money

Chapter 16 money and the banking system 161 what is

This preview shows page 76 - 79 out of 323 pages.

Chapter 16 Money and the Banking System 16.1 What Is Money? 1) The supply of money in the U.S. economy is determined primarily by A) decisions made by the Federal Reserve and the U.S. Treasury.B) the actions of the Federal Reserve and the banking system.C) consumers and the banking system.D) the demand for money in the economy.Answer: BDiff: 1Topic: Money and the Banking SystemSkill: Fact 2) In the ________ increases in the supply of money will ________. 3) Money is A) anything that is regularly used and generally accepted in economic transactions or exchanges. B) necessary to conduct economic transactions. C) facilitates specialization in production. D) anything the government declares to have value. Answer: A Diff: 1 Topic: What is Money? Skill: Definition 4) Which of the following can be used as money? 76
Image of page 76
5) When money is accepted as payment for a good or service, it is being used as a 6) Money solves the dilemma of a double coincidence of wants by serving as a A) medium of exchange.B) store of value.C) symbol of value.D) unit of account.Answer: ADiff: 1Topic: Three Properties of MoneySkill: ConceptualAACSB: Reflective Thinking 7) When money is used to express the value of goods and services, it is functioning as a 8) If the prices of goods and services were expressed in terms of carved wooden beads, then the carved wooden beads would be serving as a 77
Image of page 77
Image of page 78
Image of page 79

You've reached the end of your free preview.

Want to read all 323 pages?

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

Stuck? We have tutors online 24/7 who can help you get unstuck.
A+ icon
Ask Expert Tutors You can ask You can ask You can ask (will expire )
Answers in as fast as 15 minutes