Unit 6 Economics Review

The earliest forms of paper money were

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

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

If money is not backed by anything it is said to

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

What makes trade difficult in a barter economy?

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

Who controls the creation and destruction of new money?

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

A higher reserve requirement would result in 

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

When a bond has stopped growing it has

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

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

When would expansionary monetary policy be a good idea?

When Zimbabwe experienced hyperinflation what did their money lack?

What kind of money is created by government command?

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

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

What kind of money has other uses than as money?

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

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

What determines the price of equities?

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

A higher reserve requirement will result in 

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

When would contractionary monetary policy be a good idea?

Paper money was first used in

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

The cost of borrowing money is the

Paper money became popular in China because 

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

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

The US Dollar is

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

Stock shares that represent ownership of corporations are

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

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

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

A lower discount rate would 

Which of these would not make money more valuable?

Money sitting in the bank will lose value due to

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

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

If the Federal Reserve buys bonds in open market operations

If gasoline was used as money it would be a

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

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

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

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