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- 1. Multiple Choice
The Consumer Price Index (CPI) can be defined as
The market value of all final goods and services
A measure of inflation based on the cost of a fixed “market basket”
- 2. Multiple Choice
All of these are functions of money EXCEPT
Medium of exchange
Store of value
Commodity money
unit of measurement
- 3. Multiple ChoiceMoney loses its value when itIt becomes too plentifulbecomes too portabaleis divisibleis durable
- 4. Multiple ChoiceInflation is measured by...Consumer Price Index (CPI).Gross National Product (GNP).Gross Domestic Product (GDP).Securities & Exchange Commission (SEC).
- 5. Multiple Choice
A pair of shoes that costs $80 last month costs $100 this month. Which of the following BEST describes this economic condition?
inflation
recession
- 6. Multiple Choice
The central bank in the USA that regulates the monetary systemThe FedFDIC - 7. Multiple Choice
The percentage of a deposit that a bank must hold on to is called the ______.
Reserve Requirement
Credit
- 8. Multiple ChoiceHow many Federal Reserve Districts are in the U.S?912
- 9. Multiple Choice
When writing a check, it is a good idea to use
pencil
erasable pen
blue or black ink pen
red pen
- 10. Multiple Choice
It is ok to leave the amount portion of a check blank if you are unsure of the amount of an upcoming purchase.
true
false
- 11. Multiple Choice
Approximately how often does a financial institution send a bank statement through the mail?
yearly
weekly
quarterly
monthly
- 12. Multiple Choice
Which part of the check is the least important?
memo line
signature line
routing numbers
check number
- 13. Multiple Choice
When it comes to saving money, what is a good rule of thumb?
Keep most of your savings in your checking account
Put aside money for savings each month
Choose the savings account with the lowest interest rate
Put anything you can't afford on your credit card
- 14. Multiple Choice
The Federal Reserve Bank’s activities are controlled by
the President
Board of Governors
Congress
the citizens
- 15. Multiple Choice
Money
represents near-money
is backed by gold
is widely accepted for the payment of debt
consists of bill only, not coins
- 16. Multiple Choice
The Fed does not
print money
regulate banks
serve as a lender of last resort
control the money supply
- 17. Multiple Choice
Jack saves his money in a piggy bank. He is using money as a
medium of exchange
store of value
unit of measurement
bartering tool
- 18. Multiple Choice
When a bank makes a loan of $1,000, then
the money supply increases by $1,000
the money supply decreases by $1,000
nothing
the bank owes the FED $1,000
- 19. Multiple Choice
Which President is on the $5 dollar Bill?
Washington
Jackson
Hamilton
Lincoln
- 20. Multiple Choice
Which of the following statements is TRUE according to the Simple Quantity Theory of Money?
an increase in the money supply will cause inflation
an decrease in the money supply will cause inflation
an increase in the quantity of goods purchased will cause inflation
inflation is only caused by changes in the weather
- Answer choicesTagsAnswer choicesTags