Stock market price quotations best exemplify money

Log in Sign up. How can we help? What is your email? Upgrade to remove ads. To say money is socially defined means that: If you are estimating your total expenses for school next semester, you are using money primarily as: If you place a part of your summer earning in a savings account, you are using money primarily as a: If you write a check on a bank to purchase a used Honda Civic, you are using money primarily as: Stock market price quotations best exemplify money serving as a n: Purchasing common stock by writing a check best exemplifies money serving as a n: When economists say that money serves as a medium of exchange, they mean that it is: When economist say that money serves as a unit of account, they mean that it is: When economists say that money serves as a store of value, they mean that it is: The paper money used in the United States is: In the United States, the money supply M1 is compromised of: Currency held in the vault of the First National Bank is: Checkable deposits are classified as money because: Currency paper money plus coins constitutes about: In January , the supply of money M1 in the United States was about: To say that coins are "token money" means that: In define money as M1, economists exclude time deposits because: Which of the following is not part of the M2 money supply?

The M2 money supply includes: A checking account entry is money because it: Currency in circulation is part of: M2 not including M1. Money market deposits accounts are included in: The amount of money reported as M2: The largest component of the money supply M1 is: Paper money currency in the United States is issued by the: Coins in people's pockets and purses are: Coins held in commercial banks are: The difference between M1 and M2 is that: M1 money supply will decline.

M1 money supply will not change. M2 money supply will decline. M2 money supply will increase. M1 money supply will decline and M2 money supply will remain unchanged. M1 and M2 money supplies will not change.

M1 money supply will increase and M2 money supply will remain unchanged. M1 and M2 money supplies will both decline. M2 money supply will increase and the M1 money supply will decrease. Small-denominated time deposits, by definition: The near-money components of M2 are: Currency held within banks is part of: The money supply is backed: Which of the following does not explain what back the money supply in the United States?

It is back by gold. It is widely accepted in transactions. It is designated "legal tender" by the Federal government. It is relatively scarce. Suppose that the Federal government suddenly declared that wheat was to be used as money. What is a possible outcome of that decision?

The value of the "wheat dollar" would be unstable depending on crop yields from year to year. Farmers would replace corn and soy crops with wheat. Wheat would function as money so long as people accept it in exchange for goods and services. All of these are possible outcomes. The purchasing power of money and the price level vary: The value if money varies: If the price index rises from to , the purchasing power values of the dollar: The purchasing power of the dollar: During period of rapid inflation, money may cease t work as a medium of exchange: Stabilizing a nation's price level and the purchasing power of its money can be achieved: Other things equal, an excessive increase in the money supply will: If P equals the price level expressed as an index number and SV equals the value of the dollar then: The basic policy-making body in the U.

Federal Open Market Committee FOMC. Board of Governors of the Federal Reserve. Council of Economic Advisers.

The Federal Reserve System was created in: Senate Committee on Banking and Finance. As it relates to the Federal Reserve activities, the acronym FOMC describes the: Federal Open Market Committee. Federal Options Market Committee. Federal Organization for Monetary Control.

Federal Organization for Money Creation. The Federal Open Market Committee FOMC is made up of: The group that sets the Federal Reserve System policy on buying and selling government securities bill, notes, and bonds is the: Federal Deposit Insurance Corporation FDIC.

Federal Bond Sale Authority. Approximately how many commercial banks are now operating in the United States? Which of the following is true about the U. There are 12 regional Federal Reserve Banks. The head of the U. Treasury also chairs the Federal Reserve Board. There are 14 members of the Federal Reserve Board. The Open Market Committee is smaller in size than the Federal Reserve Board. The member of the Federal Reserve Board: An important function of the Federal Reserve Bank is to: Which of the following statements best describe the twelve Federal Reserve Banks?

They are privately owned and privately controlled central banks whose basic goal is to provide an ample and orderly market for U. They are privately owned and publicly controlled central banks whose basic function is to minimize the risks in commercial banking in order to make it a reasonably profitable industry.

They are privately owned and publicly controlled central banks whose basic goal is to control the money supply and interest rates in promoting the general economic welfare.

They are privately owned and publicly controlled central banks whose basic goal is to earn profits for their owners. The seven members of the Board of Governors of the Federal Reserve System are: To say that the Federal Reserve Banks are quasi-public banks means that: Which of the following is the basic economic policy function of the Federal Reserve Banks?

The Federal Reserve System: Research for industrially advanced countries indicates that: Commercial banks and thrift institutions: What are "mortgage-backed securities? Company stock shares for financial institutions that lend to home buyers.

Bonds backed by mortgage payments.

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Treasury bills and savings bonds that banks sold to maintain liquidity during the mortgage default crisis. Insurance against mortgage loan defaults. When banks bundled mortgage loans and sold the resulting mortgage-backed securities: Banks lost money during the mortgage default crisis because: In the financial industry,"securitization" refers to: What does it mean when economists say that home buyers are "underwater" on their mortgages?

Buyers owe more on their mortgage than the properties are worth. Buyers are financially incapable of repaying their mortgages and bankruptcy is inevitable.

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Buyers are purchasing homes on flood plains and are highly susceptible to financial losses. Buyers are paying interest rates substantially higher than current market interest rates, creating interest payments that create financial hardship. Buyers owe more on the properties than the properties are worth. The "shadow banking system" refers to: Which of the following statements is true about the high rate of mortgage defaults that contributed to the financial crisis of and ?

High interest rates on mortgage loans were the primary cause of defaults. The high rate of defaults occurred despite the efforts of government to discourage new home ownership and slow the growth of the housing bubble.

Prior to the rise in defaults banks had become lax in their lending practices, resulting in a number of bad loans. The high rate of defaults resulted primarily from the two years of recession preceding the mortgage default crisis. Which of the following financial institutions declared bankruptcy as a result of the financial crisis of and ? Which of the following financial institutions was acquired by Bank of America as a result of the financial crisis of and ?

TARP, created in , stands for: Toxic Asset Relief Program B. Troubled Asset Recovery Plan C. Toxic Asset Reinvestment Policy D. Troubled Asset Relief Program. How much did the U. Congress allocate to the Troubled Asset Relief Program in ? Some economists are concerned that the financial rescue provided by the TARP will encourage financial investors and firms to take on greater risks in the future.

This is an example of: Which of the following programs was not designed and implemented by the Federal Reserve? Troubled Asset Relief Program B. Term Securities Lending Facility C. Asset-Backed Commercial Paper Money Market Mutual Fund Liquidity Facility D. Primary Dealer Credit Facility. Troubled Asset Relief Progam. Which of the following statements is true as a result of Federal Reserve efforts to rescue the financial industry from the financial crisis of and ?

From February , to May , the Fed oversaw the consolidation of 20 major financial institutions into fewer than a dozen. From March , to February , the Fed experienced a 50 percent decline in the value of assets held.

From February , to March , Fed lending caused the U. Which of the following programs provides loans of U. Primary Dealer Credit Facility B.

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Commercial Paper Funding Facility C. Term Asset-Backed Securities Loan Facility D. Term Securities Lending Facility. Which role of the Federal Reserve was expanded directly as a result of the PDCF and TSLF?

Lender of last resort C. Fiscal agent for the Federal government D. Lender of last resort. Which of the following programs involves the Federal Reserve directly purchases short-term lending instruments from corporation? Term Asset-Backed Securities Loan Facility B.

Asset-Backed Commercial Paper Money Market Mutual Fund Liquidity Facility C. Commercial Paper Funding Facility D. Commercial Paper Funding Facility.

What is the primary function of the Term Assets Backed Securities Loan Facility? Provide funding support for collateralized securities such as student, auto, and credit card loans.

Provide securities loans to primary dealers for one-month terms. Provide overnight loans to primary dealers willing to post loan-backed securities as collateral. Provide loans to U. The various lender-of-last-resort programs implemented by the Fed in response to the financial crisis of and Between September , and September New York Life, Prudential, and Hartford, are all primarily: Chapter One, Pentagon Federal Credit Union, and Boeing Employee Credit Union, are all primarily: TIAA-CREF, Teamster' Union and CalPERS, are all primarily: Smith Barney, Charles Schwab, and Merrill Lynch, are all primarily: In , approximately how much if the money on the deposit was held by the three largest U.

Firms whose central business is to offer security advice and buy and sell individual stocks and bonds for clients are known as: Firms whose central business is providing individual account shares of collections of stocks, bonds, or both are known as: Which of these pairs of financial institutions are most alike in terms of their main lines of business?

Commercial banks and thrifts. Insurance companies and mutual fund companies. Thrifts and securities firms. Pension fund companies and commercial banks. Consider This Credit cards are: Consider This Which of the following is not part of the M2 money supply? Consider This Credit card balances are: Last Word Electronic money is: Last Word Plastic cards that contain computer chips that store balances are known as: Last Word Smart cards sold by retailers, such as single-store gift cards and prepaid phone cards are known as: