A.   token money

B.   legal tender

C.   a medium of exchange

D.   fiat money

A.   Yes, because their value is included in the calculation of M 2.

B.   No, because they provide a short-term loan to cardholders from a financial institution that issued the card.

C.   Yes, because their value is included in the calculation of M 1.

D.   No, because the card transactions are not insured by either the Federal Reserve banks or the U.S. Treasury.

A.   the confidence of the public in the ability of government to pay off the national debt

B.   the gold bullion that is stored in Fort Knox, Kentucky

C.   the belief of holders of money that it can be exchanged for desirable goods and services

D.   the willingness of banks and the government to surrender something of value in exchange for money

A.   debts, or promises to pay

B.   assets of the Federal Reserve Banks

C.   token money

D.   legal tender

A.   25%

B.   16.67%

C.   14.14%

D.   20%

A.   increase the use of money as a measure of value

B.   decrease the use of money as a medium of exchange

C.   decrease the conversion of money to gold

D.   increase the purchasing power of money

A.   buys corporate stock

B.   controls the money supply

C.   employs fiscal policy

D.   uses price and wage controls

A.   privately owned but publicly controlled

B.   publicly owned but privately controlled

C.   publicly owned and controlled

D.   privately owned and controlled

A.   commercial banks and thrifts as those institutions do for the public

B.   the public as do commercial banks and thrifts

C.   federal government as does the U.S. Treasury

D.   commercial banks and thrifts as does the Federal Deposit Insurance Corporation

A.   supervising the operation of banks to make sure they follow regulations and monitoring banks so they do not engage in fraud

B.   handling the Fed's collection of checks and adjusting legal reserves among banks

C.   setting the Fed's monetary policy and directing the buying and selling of government securities

D.   acting as the fiscal agent for the federal government and issuing currency

A.   understating the benefits of devaluing the U.S. dollar

B.   underestimating the risk of losses on mortgage-backed securities

C.   overestimating the expected profits made by oil companies

D.   overstating the moral hazard problem

A.   set up the Troubled Asset Relief Program (TARP)

B.   set up the primary dealer credit facility (PDCF)

C.   set up the money market investor funding facility (MMIFF)

D.   set up the commercial paper funding facility (CPFF)

A.   issuing paper money in excess of the amount of gold stored with them

B.   using deposited gold to produce products for sale to others

C.   issuing receipts for the gold stored with them

D.   accepting deposits of gold for safe storage

A.   add to the liquidity of the commercial bank and protect it against a "run" on the bank

B.   provide the Fed with a means of controlling the lending ability of the commercial bank

C.   protect the deposits in the commercial bank against losses

D.   provide the means by which checks drawn on the commercial bank and deposited in other commercial banks can be collected

A.   U.S. Treasury

B.   Congress of the United States

C.   Internal Revenue Service

D.   Federal Reserve

A.   The total demand for money is inversely related to the interest rate.

B.   The supply of money is directly related to the interest rate.

C.   A lower interest rate raises the opportunity cost of holding money.

D.   Bond prices and the interest rate are directly related.

A.   the reserve ratio

B.   the discount rate

C.   interest on reserves

D.   open-market operations

A.   changes required reserves to excess reserves

B.   increases the discount rate

C.   decreases the discount rate

D.   increases the amount of excess reserves banks must keep

A.   banks charge for loans to the most creditworthy customers

B.   banks charge for overnight use of excess reserves held at the Federal Reserve banks

C.   the Federal Reserve charges for short-term loans to commercial banks

D.   is charged for government bonds sold in the open market operations of the Federal Reserve

A.   a discretionary fiscal policy

B.   an expansionary monetary policy

C.   a restrictive monetary policy

D.   a prime interest rate policy

A.   selling government securities and lowering the discount rate

B.   buying government securities and lowering the discount rate

C.   buying government securities and lowering the reserve ratio

D.   selling government securities and raising the discount rate

A.   tax rates

B.   the imports of the economy

C.   investment spending

D.   government spending

A.   an increase in the federal funds rate and a decrease in the money supply

B.   a decrease in the federal funds rate and an increase in the money supply

C.   a decrease in the federal funds rate and a decrease in the money supply

D.   an increase in the federal funds rate and an increase in the money supply

A.   Jerome Powell

B.   Alan Greenspan

C.   Ben Bernanke

D.   Janet Yellen