ScienceEconomics4.03 Money in the Bank
Please enter something

4.03 Money in the Bank

Franklin Reed avatar Franklin Reed
25 December 2023
4.7 (228 reviews)
10 test answers

Unlock all answers in this set

Unlock answers (6)
question
Which best explains how a barter system works?
answer
Goods and services are exchanged without the use of money.
question
Which is a form of fiat money that is commonly used today?
answer
digital money
question
Which most accurately explains why commodity money has value?
answer
Commodity money is a good that can be used as a medium of exchange or for some other purpose.
question
Which is a balance sheet?
answer
statement of financial position
question
Which of the following explains why the government sets a required reserve ratio for private banks?
answer
make sure banks don't run out of money when customers make withdrawals
question
Which of the following best describes how the Federal Reserve Bank helps banks during a bank run?
answer
can provide a short-term loan to banks to prevent them from running out of money
question
Which of the following best describes monetary policy?
answer
managing the economy by controlling the money supply
question
Which of the following best explains why raising the required reserve ratio results in a decrease in the money supply?
answer
Banks must loan out a smaller portion of their reserves, resulting in fewer loans.
question
Which of the following best explains why Treasury bonds have an effect on the size of the money supply?
answer
The Federal Reserve Bank can buy and sell these bonds to raise or lower bank deposits.
question
Which action is most likely to result in a decrease in the money supply?
answer
The government sells a new batch of Treasury bonds.