Civics: Gov't & Econ: Money and Banking: Chapter 17

The first banks were created in Europe

When prices rise, the Fed may

You can compare a jacket’s price in several stores because

Money is accepted in exchange for goods and services because

Compound interest is ...

money in a checking account

The federal government regulates banking and our money supply through

The largest source(s) of revenue for most banks is (are)

central bank that provides services to U.S. banks and regulates their activities

Which is not a function of money.

an amount of money borrowed for a certain time period

The Fed is not affected by politics because its Board of Governors is

Our market economy could not work without

Which statement is true of American coins?

a slowdown in economic activity and production

Which does not describe characteristics of our currency?

Congress divided the nation into twelve Federal Reserve districts because

Banks only keep some deposits on hand, so they can use the rest to

Money is accepted in exchange for goods and services because

What is a basic function of money?

Which is an important day-to-day job of the Fed?

group responsible for running the Federal Reserve System as a whole

when banks keep a percentage of checking and savings deposits in reserve

What is a major function of banks in our economy?

the total amount of money available for use as a medium of exchange

exchanging goods and services for other goods and service

Which is not a characteristic of our currency?

Which of the following is not a major service banks provide?

A non-profit banking institution that serves only its members is a

Fractional reserve banking puts money from depositors to useful service in the economy because

Which could occur when spending and production are out of balance?

The Federal Reserve System is run by the

The Fed's most powerful job is to

After several financial panics, Congress passed a bill in 1913 which

Unlike most banks, mutual savings banks.

coins and paper bills used as money in an economy

In the past, which objects were used as money?

Our currency is accepted in exchange for goods and services because it