Notes 2

Question 0

The value of the U.S. Dollar was linked to the value of ___ until 1971

Answer 0

Gold

Question 1

____ money is declared by the government and accepted by citizens to have worth

Answer 1

Fiat money

Question 2

Paper money and coins is

Answer 2

Currency

Question 3

Checking accounts are called

Answer 3

Demand deposits

Question 4

____ are also called demand deposits

Answer 4

Travelers checks

Question 5

_____ are interest bearing savings accounts against which drafts may be written

Answer 5

Negotiable order of withdraw (NOW)

Question 6

____ are funds that people place in a financial institution for a specific period of time in return for a higher interest rate which are often placed in a certificate of deposit (CD)

Answer 6

Time deposits

Question 7

____ is the narrowest measure of the money supply,consisting of currency , demand deposits,and other checkable deposits

Answer 7

M1

Question 8

___ is a broader measure of the money supply,consisting of M1 plus various kinds of near money

Answer 8

M2