Exam3-Final-20

Question 1

Money

Answer 1

anything that people accept as payment for goods

Question 2

barter

Answer 2

trading of goods for other goods

Question 3

Standards for useful money

Answer 3

1-Protability
2-Divisibilty
3-Stability
4-Durability
5-Uniqueness

Question 4

Money Supply

Answer 4

Amount of Money the Fed makes avaible for people to buy goods
m1-money that can be accessed quickly.
m2-money included in m1 plus money that may take a littel time to obtain.
m3-m2 plus big deposits.

Question 5

Inflation

Answer 5

a general rise in the prices of goods and services over time.

Question 6

deflation

Answer 6

a situation in which prices are declining.

Question 7

Federal Reserve

Answer 7

Five Major Parts

1. ) Board of Governors
2. ) Federal Open Market Committe (FOMC)
3. ) 12 Federal Reserve Banks
4. ) Three Advisory Counsils
5. ) Members of the bank systems.

Question 8

Letter of Credit

Answer 8

promise by the bank to pay the seller a given amount if certain conditions are met

Question 9

Bankers Acceptance

Answer 9

promise that the bank will pay some specified amount at a particular time

Question 10

money exchange

Answer 10

company can exchange money to different currencies

Question 11

world bank

Answer 11

bank responsible for financing economic deveolpment

Question 12

IMF

Answer 12

International Monetary Fund-organization that assists the smooth flow of money among nations