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Chapter Quiz
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1
Barter is the direct trading of goods and services for other goods and services.
A)True
B)False
2
M-1 includes money in savings accounts, money market accounts, and mutual funds.
A)True
B)False
3
The Fed has a board of governors.
A)True
B)False
4
A stock exchange is a place where investors may go to buy and sell stocks.
A)True
B)False
5
Mutual funds are another name for stocks.
A)True
B)False
6
A useful form of money has which of the following characteristics?
A)portability
B)divisibility
C)stability
D)All of the above are characteristics of a useful form of money.
7
__________ includes coins and paper bills, money available by writing checks, and money held in traveler's checks—that is money that can be accessed quickly and easily.
A)M-1
B)M-2
C)M-3
D)M-4
8
The discount rate is the interest rate that the Fed charges for loans to _____________.
A)consumers.
B)privately-held banks.
C)member banks.
D)large businesses.
9
__________ markets handle the sale of new securities.
A)Primary
B)secondary
C)Trading
D)Discount
10
__________ are shares of ownership in a company.
A)Stocks
B)Bonds
C)Mutual funds
D)Certificates of deposit





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