Money and the Monetary System Quiz

Money does not function as a store of labor.

Money supply refers to the total amount of money in circulation within an economy.

Inflation refers to the increase in the general price level of goods and services over time.

Commodity money has intrinsic value derived from the commodity it represents.

Discount rate is the interest rate at which central banks lend to commercial banks.

Subjectivity is not a characteristic of money; it should be objective and universally accepted.

In modern economies, the government typically controls the money supply.

The Federal Reserve System primarily manages the money supply in the United States.

FDIC stands for Federal Deposit Insurance Corporation, ensuring bank deposits.

Hyperinflation is a rapid and excessive increase in prices.

Yen is the currency used in Japan.

Gross Domestic Product (GDP) measures a country's economic output.

Monetarism advocates for using monetary policy to control economic variables.

Quantitative easing refers to increasing the money supply by buying government securities.

Stagflation is characterized by high inflation and high unemployment rates.

A trade deficit occurs when a country's imports exceed its exports.

Depreciation refers to the decrease in value of a currency relative to other currencies.