Unit 6 Economics Review

The earliest forms of paper money were

What type of economy has no money and is based on trade?

The rate of interest the Fed charges on loans to other banks is the

What could you invest in to pay less in taxes while you save for retirement?

When would expansionary monetary policy be a good idea?

What kind of money is created by government command?

Decreasing the money supply to increase interest rates & lower inflation is 

The multiple the money supply expands by when new money is deposited in a bank is the

A lower discount rate would 

The policy that banks must only keep some of deposits as reserves, and may lend out the rest is

Which of these bond ratings would represent the lowest risk & lowest reward?

Attempts to stabilize the economy by increasing or decreasing the money supply are

What determines the price of equities?

The central bank of the US that oversees the entire banking and money systems is

The US Dollar is

When did the USA completely end the backing of the Dollar by gold?

Money sitting in the bank will lose value due to

A company that invests in many different stocks and bonds and then issues stocks is called

The safest way to protect the value of money over time would be

Which characteristic of money means it can be easily transferred to others?

Paper money became popular in China because 

If gasoline was used as money it would be a

If money is not backed by anything it is said to

A higher reserve requirement would result in 

What is a loan contract that pays interest in increments and then is fully repaid at maturity?

The theory that the market is better at predicting stock values than individuals

Which function of money means it can be used to put prices on things?

Which of these would not make money more valuable?

What makes trade difficult in a barter economy?

A higher reserve requirement will result in 

Which of these would not make money more useful & more valuable?

The cost of borrowing money is the

When would contractionary monetary policy be a good idea?

If the Federal Reserve buys bonds in open market operations

When Zimbabwe experienced hyperinflation what did their money lack?

Which of these does the Efficient Market Hypothesis imply is a good idea?

The percentage of every dollar deposited in a bank that must be kept in reserve is the

When the Federal Reserve buys or sells bonds to affect the money supply they are doing

The only way save money & have it gain real value over time is to

Which of these is in the correct order from highest risk & reward to lowest?

Which function of money means it is accepted as payment for goods and services?

Who controls the creation and destruction of new money?

Stock shares that represent ownership of corporations are

A strategy of buying many different types of assets for your investment portfolio is

What kind of money has other uses than as money?

When money can be directly exchanged for gold from a bank it is ________ by it

Paper money was first used in

Which characteristic of money means it will last a long time?

When a bond has stopped growing it has

Increasing the money supply to lower interest rates & cause economic growth is called