Medium of Exchange, Unit of Account, Store of Value.
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The functions of money:
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currency and checkable deposits.
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The narrowest definition of the U.S. money supply is M1, which consists of:
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the primary depository institutions. They accept the deposits of households and busniesses, keep the money safe until it is demanded via checks, and in the meantime use it to make available a wide variety of loans.
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Commercial banks are:
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savings and loan associations, mutual savings banks, and credit unions.
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Thrift institutions are:
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M2
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a Broader definition of money includes M1 plus several near-monies:
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Savings deposits, including money market deposit accounts (MMDA); Small-denominated time deposits; Money market mutual funds held by individuals (MMMF).
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M2 includes three categories of near-monies:
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a board of governors that direct the activities of the 12 federal reserve banks.
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The Federal Reserve System is:
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the nation's central bank.
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The 12 federal reserve banks serve collectively as:
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blend private ownership and public control.
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The 12 federal reserve banks are quasi-public banks, which:
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directs the purchase and sale of government securities in the open market.
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The federal open market committee (FOMC):
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issuing currency, setting reserve requirements and holding reserves, lending to financial institutions, providing for check collection, acting as fiscal agent, supervising banks, controlling the money supply.
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The Fed performs several functions:
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Unit of account
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Stock market price quotations best exemplify money serving as a:
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store of value.
unit of account.
medium of exchange.
index of satisfaction.
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setting the Fed's monetary policy and directing the purchase and sale of government securities.
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The Federal Open Market Committee (FOMC) of the Federal Reserve System is primarily for:
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maintaining cash reserves that can be used to settle international transactions.
supervising banks to make sure markets are open to all and remain competitive.
issuing currency and acting as the fiscal agent for the federal government.
setting the Fed's monetary policy and directing the purchase and sale of government securities.
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token money
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All coins in circulation within the United States are:
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near monies.
checkable deposits.
token money.
time deposits.
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is decreased
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When a bank loan is repaid, the supply of money:
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is constant, but its composition will have changed.
is decreased.
is increased.
may either increase or decrease.
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a medium of exchange
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The principal advantage money has over barter is its function as:
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a store of value.
a medium of exchange.
a unit of account.
debt.
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$100,000
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A commercial bank has actual reserves of $1 million and checkable-deposit liabilities of $9 million, while the required reserve ratio is 10 percent. The excess reserves of the bank are:
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$50,000.
$100,000.
$900,000.
$1 million.
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a unit of account
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If product prices were stated in terms of gallons of milk, then milk would be functioning primarily as:
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fiat money.
legal tender.
a store of value.
a unit of account.
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currency
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The largest component of the money supply (M1) is:
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currency.
checkable deposits.
small time deposits.
savings deposits.
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1 / required reserve ratio
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The monetary multiplier =
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