Question 1Tips5 pts______ is anything (regardless of form) that is acceptable as payment for goods and services.Group of answer choicesShareholders' equityCapitalMoneyA fixed assetRevenue Flag question: Question 2Question 2Tips5 ptsAny object or objects that a group of people use to buy and sell goods and services is called:Group of answer choicesa countertradecapitalmoneyrevenuean earned deposit Flag question: Question 3Question 3Tips5 ptsItems that groups of people use as money must be _____ to be acceptable mediums of exchange.Group of answer choicesscarce, divisible, portable, and durableportable, sortable, profitable, and divisiblecompatible, durable, universal, sortabledistributable, durable, comparable and valuablevaluable, durable, compatible and scarce Flag question: Question 4Question 4Tips5 ptsWhich of the following is NOT one of the key characteristics required in order for money to be an acceptable medium of exchange?Group of answer choicesscarcitydurabilitydivisibilityprofitabilityportability Flag question: Question 5Question 5Tips5 ptsCupcakes, hamburgers, and cut flowers would not make good mediums of exchange because they lack the key characteristic of:Group of answer choicesexchangeabilitydivisibilityprofitabilitydurabilitycompatibility Flag question: Question 6Question 6Tips5 ptsThe most important function of the Federal Reserve System is carrying out ______ policy.Group of answer choicesfiscaltaxmonetaryspendinginflationary Flag question: Question 7Question 7Tips5 ptsWhich of the following is an activity performed by the Federal Reserve System as it carries out its monetary policy?Group of answer choicesinsuring credit card balancesproviding tax refundsdistributing currencyloaning money to consumerscontrolling the stock exchange Flag question: Question 8Question 8Tips5 ptsThe three principal tools of the Federal Reserve System are:Group of answer choicesdiscount rate, prime rate, and open market operationstax rate, margin requirements, and discount rateopen market operations, discount rate, and tax ratereserve requirements, consumer rate, and prime ratereserve requirements, discount rate, and open market operations Flag question: Question 9Question 9Tips5 ptsThe most frequently used and the most flexible tool that the Federal Reserve has that it can use to change the economic environment is:Group of answer choicesreserve requirementopen market operationsprime ratediscount rategeneral fund deposits Flag question: Question 10Question 10Tips5 ptsThe purchase or sale of U.S. government bonds by the Federal Reserve to stimulate or slow down the economy is called:Group of answer choicesa base market operationan open market operationa prime transactionmanipulating the discount ratemaking a general fund deposit/withdrawal Flag question: Question 11Question 11Tips5 ptsTo stimulate the economy, the Federal Reserve can:Group of answer choiceslower the reserve requirementraise the prime rateraise the discount ratesell government bonds on the open marketbuy stocks listed on the New York Stock Exchange Flag question: Question 12Question 12Tips5 ptsFederal Reserve banks must hold a certain portion of their deposits in reserve. This percentage is called the:Group of answer choicesreserve requirementprime monetary percentagediscount requirementinterest rate averagemargin requirement Flag question: Question 13Question 13Tips5 ptsWhen The Bank of Bank County borrows funds from the Federal Reserve; the rate the Fed charges the commercial bank is called the _____ rate.Group of answer choicesprimediscountcommercial bankgoingreserve Flag question: Question 14Question 14Tips5 ptsIn its role as lender to member banks, the Federal Reserve is called the:Group of answer choicesnational bankcustomized banknational creditorbanker's bankgovernment exchange