Money & the Federal Reserve System

  1. can be anything that serves as (1) medium of exchange, (2) unit of account, and (3) store of value.
  2. is the most important function of money. This means that money is widely accepted in payment for goods and services.
    Medium of exchange
  3. is the function of money to measure relative values by serving as a common yardstick for valuing goods and services
    Unit of account
  4. is the property of money to hold its value over time.
    Store of value
  5. is money that has marketable value, such as gold and silver.
    Commodity money
  6. is the narrowest definition of money which equals currency plus checkable deposits.
  7. is a broader definition of money which equals M1 plus all money in savings deposits and small time deposits.
  8. is an even broader definition of money which equals M2 plus large time deposits of more than $100,000
  9. is our central bank and was established in 1913
    The Federal Reserve System
  10. directs the buying and selling of U.S. government securities, which is a key method of controlling the money supply.
    Federal Open Market Committee
  11. is the direct exchange of one good for another good, rather than for money.
  12. Money accepted by law and not because of redeemability or intrinsic value is called
    Fiat money
  13. is money, including coins and paper money.
  14. The total of checking account balances in financial institutions convertable to currency "on demand" by writing a check without advanced notice is called
    Checkable deposits
  15. is the seven members appointed by the president and confirmed by the U.S. Senate who serve for one nonrenewable 14 year term. Their responsibility is to supervise and control the money supply and the banking system of the United States.
    Board of Governers
  16. is the government agency established in 1933 to insure commercial bank deposits up to a specified limit.
    The Federal Deposit Insurance Corporation
  17. A law, that gives the Fed. greater control of nonmember banks fand makes all financial institutions more competitive is called the
    Monetary Control Act
Card Set
Money & the Federal Reserve System
The Fed