Show:
Types of Money
Uses/Characteristics
Financial Institutions
The Fed
Inflation/Pricing
100

Before money civilizations used this system.

The Barter System

100

A characteristic of money meaning that you can break it into smaller pieces.

Divisibility

100

Banks attract deposits by....

paying interest on accounts

100

When was the Federal Reserve established?

1913

100

The general sustained upward movement of prices is called .....

Inflation

200

This type of money involves using things like seashells, tobacco, or spices.

Commodity Money

200

A characteristic of money that means you can carry it around.

Portability

200
How are credit unions different than a bank?

Credit unions are owned by their members.

Credit unions are not for profit.

200

What is the Dual Mandate of the Fed?

Employment and Price Stability
200

When consumers expect significantly higher prices in the near future they will (increase/decrease) their spending now.

increase

300

Money backed by gold or silver.

Representative money

300

A use of money for comparing value of goods and services.

A Unit of Account

300

How do banks make money?

Charging interest on loans

300

What does FOMC stand for?

Federal Open Market Committee

300
Inflation happens when the money supply grows (slower/faster) than economic output.

faster

400

Money backed by government decree

Fiat Money

400

A __________ of exchange is anything used to measure value during the exchange of goods and services.

Medium

400

If you wanted to protect your home from the possibility of financial loss due to a disaster or fire you would look for a/an __________________ company.

Insurance

400

If the Fed wanted to fight inflation they may (raise/lower) interest rates which would (reduce/increase) the money supply

raise

reduce

400

When the government sets a maximum price on rental housing below market rates this may result in a supply (surplus/shortage).

Shortage

500

Fiat money is said to have no intrinsic v_______.

value
500

A use of money meaning it keeps its value it you don't spend it right away.

Store of Value

500

A person who wants to invest in Stocks, Bonds, or Mutual Funds would send their money to a ____________ firm

Investment

or

Brokerage

500

When the economy looks to be in a recession what would The Fed do?

lower interest rates

500

In a market experiencing a surplus of goods, what typically happens to the price of those goods.

The prices will fall.