Noah’s company is privately owned. His company:

Gloria just started working for GlenMack. As part of her signing bonus, she received 20 shares of GlenMack stock. Gloria is excited to contribute to the company and to track the value of her shares on the New York Stock Exchange. GlenMack must be:

Stocks or equity securities are:

Those who buy stock become ________.

A firm will receive a major financial benefit from the sale of its stock ________ .

Historically many methods and markets were used to raise capital, but the primary methods that have evolved in modern times are the:

Carlos has a small fashion company. He has been in business for a little over a year and the company looks like it is going to do very well. Carlos is in talks with Bloomingdale's and Nordstrom, and already has been doing some work with Calvin Klein. Carlos needs to raise some capital to help the company grow to keep up with the demand. What might be a good source of capital for Carlos to look into?

What is the biggest advantage of borrowing money, such as a loan or a bond, instead of issuing stock in order to raise capital?

An individual walks to a local sandwich shop and uses a $10 bill to pay for a $6 sandwich, receiving $4 as change for this transaction. The $6 price of the sandwich ________.

As a business owner you decide to hire a new employee named Maria. You decided to pay Maria $15.00 an hour for her work. At the end of the week Maria receives a paycheck for $600. The $600 Maria received is ________.

The nation of Newbie is establishing its monetary system and is designing its currency. The first proposal is to issue the Newbie Nugget (their new currency) in only 3 denominations of paper bills (100, 500 and 1000 Newbie bills) but no coinage. In order to save time and resources they will print their currency on a heavy stock cardboard. The bills will be about the size of a business card so that the Newbian people will be able to easily carry it with them in their wallets. Why will the Newbie Nugget not function as a medium of exchange?

On Yap Island, in the Pacific Ocean, early inhabitants used large limestone disks, known as Rai stones, as money. Some of these disks weighed as much as a car! Everyone agreed that the stones were valuable and the people utilized them in much the same way we use money today. The weight of the stones and the fact that a Rai stone is difficult to split into smaller denominations would make Rai stones unfit to act as money today because Rai stones could not act as a ________.

You pay your neighbor $100 in exchange for the used washing machine she is selling. Your neighbor puts that $100 into her pocket and takes her family out to the movies and a nice dinner at the end of the week. She still has $20 left after this outing and decides to put the remaining $20 into her savings account. This is an example of:

Although money has no intrinsic value, it is demanded throughout society. Money is demanded for all of the following reasons EXCEPT:

A neighbor has apple trees to harvest but no time to do it. The Peterson family has time to harvest but doesn’t want to work for apples. The Petersons are hoping to take a vacation next summer, and agree to harvest the apples for their neighbor in exchange for a $200 payment for their work. This illustrates one of the advantages of money over bartering, which is:

You need to have your gutters cleaned in the spring but have no ladder and are really afraid of heights. Buddy lives down the street and owns a roofing business. You contact Buddy and ask him if he will come clean out your gutters and in exchange you will make him a wreath he can hang on his door at the holidays. He agrees to the exchange. What type of system have you used in this transaction?

The reason we rarely use the barter system today is:

Bitcoin is an example of which of the following?

Apple Pay is an example of which of the following?

What is a reason you might be hesitant to use Bitcoin?

If the federal government wanted to find out how much M1 money is in circulation in the US, it would look at which of the following?

If the federal government wanted to find out how much M2 money (excluding M1) is in circulation in the US, they would look at which of the following?

Paul would like to buy his first home (an awesome 3 bedroom on a quiet street with a beautiful tree in the front!). The home is listed for $200,000 and he needs to come up with a down payment of $40,000. Paul starts by looking at his most liquid assets to come up with the necessary down payment. Which of the following are the most “liquid” of Paul’s options:

The purpose of a financial institution such as a bank or credit union is to ________.

Banks are a critical intermediary in what is called the ________, which helps an economy exchange goods and services for money or other financial assets.

On Friday, Josie receives her paycheck and goes directly to the bank after work to make a deposit into her savings account. The bank keeps the required reserve and then loans out the remaining balance to a qualified borrower named Juan as a portion of his small business loan. Juan uses the loan to buy a new copy machine for his printing business and makes small monthly payments to the bank to payback the principal balance plus interest on the loan. The bank profits from a portion of the interest payment received and also passes some of the interest back to Josie in the form of an interest payment to her savings account. In this example, the bank is acting ________.

What government entity is responsible for monitoring the U.S. money supply?

Hometown Bank has made a significant number of loans to their customers, some of which have been very large. An audit of the bank’s records shows that as a result of this increased lending activity, the bank is now below the Federal Reserve’s minimum reserve requirement. The Fed lends the bank the amount necessary to bring its reserves up to the required level. Even though Hometown Bank is borrowing the money from the Fed, it will still have to pay interest on this money. The interest rate that is paid to the Fed on this loan is the ________.

Hometown Bank has made a significant number of loans to their customers, some of which have been very large. An audit of the bank’s records shows that as a result of this increased lending activity, the bank is now below the Federal Reserve’s minimum reserve requirement. A member bank, City Bank, has excess reserves, which Hometown Bank borrows. The rate of interest that Hometown Bank will pay to City Bank for the loan is the ________ rate.

One of the ways the Federal Reserve System seeks to stabilize prices is by:

The Federal Reserve relies on what other tool to conduct monetary policy besides the discount rate?

The Federal Reserve uses a variety of monetary policy tools to achieve which of the following goal(s)?

The Federal Reserve raises the reserve requirement from 7 percent to 8 percent. Consequently banks must set aside more money and consequently have less money to lend. The result is that the banks will raise the interest rate they charge to their customers. These conditions make it harder and more expensive for people and businesses to borrow money. Because they can’t borrow as much, they can’t spend as much. If people aren’t spending as much, prices don’t go up. With this action, the Fed has lessened the likelihood of ________.