Topic 14: Ch. 20

Question 1

Barter

Answer 1

Trading of goods or services for other goods or services 

Question 2

Money supply types

Answer 2

M-1, M-2 and M-3 (M-1 is fastest to obtain)

Question 3

Reserve requirement

Answer 3

A percentage of commercial banks checking and savings accounts that must be physically kept in the bank

Question 4

Open market operations

Answer 4

The buying and selling of US government bonds by the fed with a goal of regulating the money supply

Question 5

Discount rate

Answer 5

In the interest rate that the fed charges for loans to member banks

Question 6

Certificate of deposit

Answer 6

Time deposit (savings) account that earns interest to he delivered at the end of the certificates maturity date

Question 7

Pension funds

Answer 7

Money put aside by corporations, nonprofit organizations and unions to cover part of the financial needs of members when they retire

Question 8

Federal deposit insurance corporation (FDIC)

Answer 8

A independent agency of the US government that insures bank deposits

Question 9

Savings Association Insurance Fund (SAIF)

Answer 9

The part of the FDIC that insures holders of accounts in savings and loan associations

Question 10

International Monetary Fund

Answer 10

Organization assists the smooth flow of money among nations (controversial organization)