Consumer Economics
Lesson #11 Review
Lesson #11
Test Review
Welcome to the online test review.
Working through these questions and
studying will give you a good
indication of what is on the exam.
Click here to begin
the review
Question #1
For money to be a medium of exchange,
it must be in limited supply
True
False
Correct!
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question
Question #2
Fiat money has no inherent worth (it
only has value because the government
says it does)
True
False
Correct!
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Question #3
Because of the Federal Reserve
System, banks did not fail during the
depression of the 1930’s?
True
False
Correct!
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Question #4
The Legal Tender Act of 1862 created
the currency called greenbacks?
True
False
Correct!
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Question #5
State banks were required by law to
join the Federal Reserve when it
started in 1913
True
False
Correct!
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Question #6
Commodity money has an alternative
use as an economic good.
True
False
Correct!
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Question #7
When money becomes too plentiful,
which of the following happens?
It becomes
less durable
It can easily
be divided
It loses its
value
Correct!
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Question #8
The FDIC was established to …
Protect
consumers
savings
Act as a backup to the
Federal
Reserve
World Domination
Correct!
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Question #9
How many Federal Reserve banks
(territories) are there in the
system?
12
10
15
Correct!
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Question #10
Continental Dollars were a problem
because…
Too many were
printed
There was too much
gold backing them
Both of the
above
Correct!
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Question #11
For money to have value, it must have
all of the following except…
Durability
Portability
Divisibility
Plentiful
availability
Correct!
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Question #12
The FDIC insures people accounts for a
maximum amount of …
$100,000
$125,000
$150,000
Correct!
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Question #13
Continental Dollars were printed to
support…
The War of
1812
The Korean
War
The Crimean
War
The
Revolutionary
War
Correct!
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Question #14
The Federal Reserve System was
established in…
1881
1913
1799
1941
Correct!
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Question #15
Individuals can get loans from the
Federal Reserve bank?
True
False
Correct!
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Question #16
A rush of depositors to withdrawal their
money from a bank before it fails is called?
Mandatory Withdrawal
Run on the Bank
Correct!
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Question #17
Coins in circulation last about 20 years,
this makes them …
Portability
Divisibility
Durable
Plentiful
availability
Correct!
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Question #18
Congress created the National Banking
System (NBS) by passing which law?
Glass – Steagall
Act
National
Banking Act
Campbell –
Seavers Law
Correct!
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Question #19
What year was the National Banking
Act passed
1850
1870
1863
1903
Correct!
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Question #20
What type of economy relies on the
trade of g/s
Command
Market
Barter
Correct!
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Question #21
What was the legal tender called first
issued in 1861 to finance the Civil War
Greenbacks
Red Notes
Dollar Bills
Correct!
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Question #22
When the government declares an item
to be money without gold backing
Currency
Money
Printed Money
Fiat Money
Correct!
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Question #23
Silver Certificates were paper
currency backed by silver dollars was
passed in …
1878
1875
1880
Correct!
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Question #24
The NBS lead to more _______ and higher
______ of banks (which gave people
confidence in banks)
Paper money /
security
Banks / profits
Inspections /
standards
Correct!
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Question #25
Who does the Federal Reserve lends
money to whom?
Individuals
Foreign Banks
Mr. Campbell
Other US
banks
Correct!
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Question #26
What year was the Federal Reserve
created?
1910
1913
1915
1929
Correct!
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Question #27
What was the reason for the Federal
Reserve to be created?
Banking
crisis of
1910
Stock
market
collapse
Result of
World War 1
Great
Depression of
1929
Correct!
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Question #28
How do you get on the board of Governors
for the Federal Reserve?
Appointed by the President,
confirmed by senate
Appointed by the President,
confirmed by congress
Appointed by chairman of the
New York Fed bank
Correct!
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Question #29
What is the nickname for the Federal
Reserve?
“The mightiest bank in the world”
“The bankers bank”
“the money store”
Correct!
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Question #30
Who many banks are in the Federal Reserve
system?
10
16
12
20
Correct!
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Question #31
Who is the only permanent member of the
FOMC?
Chairman of the
Fed of Dallas
Chairman of the
Fed of Cleveland
Chairman of the
Fed of New York
There is no
permanent
member
Correct!
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Congratulations
You’ve made it through the review
questions, click below for more
valuable test information
You need to know the
following definitions
Medium of exchange
Gold certificate
Monetary standard
Legal tender
Gold standard
Click on the
button for more
definitions
You need to know the
following definitions (cont)
State bank
Federal Reserve System
Fiat Money
National Banking System
Credit Union
Click here if you
are done
reviewing
Click on the
button for more
info
You also need to know the
following
Disadvantages of the Gold
Standard
What the constitution says about
Click on the
money
button for more
info
What makes money
“money”
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are done
reviewing
You also need to know the
following
Characteristics of money
Managed Money Supply
“The Fed Today” brochure
questions from this worksheet)
Click here if you
are done
reviewing
(at least 5 or six
Click on the
button for more
info
Test Format
True & False
Multiple Choice
Matching
Completion
Bonus Questions
Click here
for last
slide
Good Luck
Remember to study, get a
good nights sleep, and eat
a healthy breakfast