Civics Today: Citizenship, Economics, & You

Chapter 24: Money and Banking

Money and Banking

1
Which of the following is not a function of money?
A)measure of value
B)store of value
C)measure of virtue
D)medium of exchange
2
Your deposit is insured up to $100,000 by the __________.
A)Federal Deposit Insurance Corporation
B)Federal Municipal Insurer's Association
C)Banker's Insurance Corporation
D)Certificates of Deposit
3
Diamonds are difficult to use as money because __________.
A)not everyone agrees that they are valuable
B)they are difficult to carry around
C)they are not easy to split into smaller pieces to use
D)they are not valuable
4
In our system, what gives our money its value?
A)the value of the metals in the coins
B)our confidence in the money supply's value
C)the value of the security thread in the currency
D)that it can be exchanged for gold
5
The Federal Reserve is divided into __________ districts.
A)5
B)6
C)12
D)50
6
The Fed conducts monetary policy by manipulating __________.
A)the discount rate, reserve requirements, and cash flow
B)the amount of currency printed or coined during a given year
C)the discount rate, reserve requirements, and open market operations
D)reserve requirements and the amount of currency printed
7
Raising the discount rate will __________.
A)slow the economy's rate of growth
B)speed up the economy's rate of growth
C)allow more consumers to make mortgage loans
D)cause businesses to expand
8
If you are willing to put a certain amount of money in the bank for a year, you would earn more interest with a __________.
A)checking account
B)debit card
C)certificate of deposit
D)regular savings account
9
The Federal Reserve System was established as a result of __________.
A)Alexander Hamilton's economic policies
B)Andrew Jackson's economic policies
C)a series of panics and bank failures
D)the Great Depression
10
During the Great Depression President __________ declared a "bank holiday" until banks could prove they were financially sound.
A)Harding
B)Hoover
C)Truman
D)Roosevelt
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