Chapter 10 - Economics Test

Question 1

The U.S went on the gold standard in 1900 and then

Answer 1

went off the gold standard in 1933

Question 2

Characteristic of portability

Answer 2

You can carry money in a pocket or purse.

Question 3

A $1 bill is what

Answer 3

fiat money, a Federal Reserve note, and currency.

Question 4

is a bank that can lend to other banks in times of need, or a “banker’s bank”

Answer 4

central bank

Question 5

is an example of fiat money

Answer 5

Wampum

Question 6

is a formula used to compute the amount of a depository institution’s required reserves.

Answer 6

Reserve requirement

Question 7

A checking account is an example of

Answer 7

DDA (Direct Deposit Account)

Question 8

When did banks issue currency

Answer 8

in the early 1800s in the U.S

Question 9

is a privately owned, publicly controlled, central bank of the U.S

Answer 9

The Federal Reserve System (Fed)

Question 10

a certificate of ownership in a corporation is called

Answer 10

stock

Question 11

Most banks are established as

Answer 11

corporations

Question 12

This note is legal tender for all debts…is printed on notes. This shows that it is a…

Answer 12

medium of change

Question 13

is a commercial bank chartered by the National Banking System

Answer 13

A national bank

Question 14

is a form of business organization

Answer 14

corporation

Question 15

can cost you money in large interest payments.

Answer 15

credit card

Question 16

Congress enacted the National Currency Act during the

Answer 16

Civil War…it created a National Banking System.

Question 17

shows than an investor has made a loan

Answer 17

Certificates of deposit (CDs)

Question 18

provides insurance on depositor’s accounts

Answer 18

FDIC

Question 19

is a system where currency is the same as gold

Answer 19

The gold standard

Question 20

money that has no alternative value is

Answer 20

fiat money