this function of money allows money to be used to facilitate transactions
What is medium of exchange?
100
characteristic of money that allows it to keep its value
What is limited availability?
100
the U.S. one dollar bill is an example of this type of money
What is fiat money?
100
What does the acronym FOMC in relation to the Fed stand for?
What is Federal Open Market Committee?
100
this philosopher believe that government should have minimal involvement in the economy because it would lead to socialism and loss of freedom
Who is Friedrich Hayek?
200
Which function of money allows money to maintain its value over time?
What is store of value?
200
easy to carry
What is portability?
200
money that has an alternative use as an economic good
What is commodity money?
200
The Board of Governors is chosen by the __________ and confirmed by __________.
Who is the President; Congress?
200
This economic philosopher had a large influence on US monetary policy, wrote The Monetary History of the United States, and linked increase in money over time with inflation.
Who is Milton Friedman?
300
If you write a check to purchase something, you are using money primarily as this function.
What is a medium of exchange?
300
can be divided into smaller units
What is divisibility?
300
type of money that has the most stable value
What is representative money?
300
The ____________________ of the Federal Reserve System makes the decisions about growth of money supply and the level of interest rates.
What is Federal Open Market Committee (FOMC)?
300
largest component of the money supply (M1)
What is paper money in circulation?
400
If you are estimating your total expenses for school next semester, you are using money primarily as this function.
What is a unit of account?
400
limited supply
What is limited availability?
400
Positive aspects: allows a market to work more efficiently because of the functions and characteristics of money
Negative aspects: value fluctuate based on supply
What is currency?
400
The interest rate charged by the Federal Reserve to banks that borrow on a short-term (usually overnight) basis
What is discount rate?
400
The cause-effect chain of this type of money policy is: an increase in the money supply will lower the interest rate, increase investment spending, and increase aggregate demand and GDP
What is easy money policy?
500
When economists describe this function of money, they mean that it is a way to keep wealth in a readily spendable form for future use.
What is store of value?
500
does not deteriorate easily
What is durability?
500
A _____ card can be used to buy products and can be used without being able to afford purchases immediately.
What is credit?
500
TRUE or FALSE: selling bonds increases the money supply