Show:
Functions and Characteristics
History of Money
The Fed
Tools of Fed
Miscellaneous
100
Name the 4 characteristics of Money
Portable, durable, divisible, and limited in supply
100
Where did the $ symbol originate from?
Spanish peso in 1782
100
How many members are appointed in the Board of Governors?
7
100
What is the Fed’s plan for expanding or contracting money supply?
Monetary Policy
100
Where did our modern word for money, “bucks”, come from?
Traded Deer Hides
200
Name the 3 functions of money
Medium of Exchange, Measure of Value and Store of Value
200
From which period are the first records of loans and deposits?
18th Century BC in Babylon
200
What is the Fed owned by?
Member banks. "Privately owned, but publicly controlled."
200
What are the 3 tools of the Fed?
Open Market Operations, Discount Rate, Cash Reserve Rate
200
What corporation, created by The Banking Act, built a sense of security in banking?
Federal Deposit Insurance Corporation
300
Two examples of things that fulfill all three functions of money other than currency bills.
Personal checks, Credit cards, Gold
300
When did the first credit card come out?
1951
300
Which body in the Fed meets 8 times a year to review the economy and evaluate factors such as trends in contraction, wages, etc.?
Federal Open Market Committee (FOMC)
300
Which is the most frequently employed tool of the Fed?
Open Market Operation
300
Who is the current chairman of the Board? Who was it before him/her?
Ben Bernanke, preceded by: Alan Greenspan
400
Do playing cards come under medium of exchange, store of value and/or standard of value?
None
400
What was the first civilization to create paper money?
China
400
What year was the Fed created?
1913.
400
How are the 3 tools used in conducting Monetary Policy?
In the expansionary policy, in the Open Market Operations, bonds are bonds are bought, discount rates are increased and cash reserve rates are increased. In the contractionary policy, in the Open Market Operations, bonds are sold, discount rates and cash reserve rates are decreased.
400
Which are probably the oldest of all forms of money in the world? Hint: Not necessarily satisfied the functions and characteristics of money.
Cattle
500
Does prepaid phone cards come under any of the functions? If so which ones?
Medium of Exchange + Standard of value
500
Who was the first ever banker?
Pythius, merchant banker from Asia in 5th century B.C.
500
What are the 3 advisory councils?
Federal Advisory Council, Consumer Advisory Council, and Thrift Institution Advisory Council
500
What percent is the discount rate usually around?
6%
500
Describe M1 and M2.
M1 is money supply relating to money’s role as a medium of exchange. M2 is money supply relating to money’s role as store of value.