10 Questions
What are the three main components of the U.S. money supply?
Currency, demand deposits, and time deposits
Which institution is responsible for insuring deposits in commercial banks and thrift institutions in the United States?
The Federal Deposit Insurance Corporation (FDIC)
What is the primary function of the Federal Reserve System?
To oversee the nation's monetary and credit system
What type of financial institution is not for profit and member-owned?
Credit unions
What is a key characteristic of money that makes it a suitable means of exchange?
It is widely accepted
What are the characteristics of a good medium of exchange?
It must be scarce, durable, portable, and divisible
What role do U.S. banks play in the international marketplace?
They provide loans and trade-related services to foreign governments and businesses
What is the primary tool used by the Federal Reserve to manage the money supply?
Open market operations
What characteristic of money makes it scarce?
It is available in limited quantities
What is the maximum insurance coverage per depositor, per bank, provided by the FDIC?
$250,000
Assess your understanding of money, financial institutions, and the Federal Reserve's role in the economy. Perfect for post-secondary students in economics, finance, or business studies.
Make Your Own Quizzes and Flashcards
Convert your notes into interactive study material.
Get started for free
