Question: The concept of being unable to divide a chicken in half when it comes to bartering most closely relates to which standard for a useful form of money

Answer: Divisibility

Question: Barter is the direct trading of goods or services for other goods or services

Answer: barter

Question: The Federal Reserve manages interest rates and inflation when implementing policies.

Answer: True

Question: Money that can be accessed quickly and easily (coins, paper money, checks)

Answer: M1

Question: M2 plus big deposits like institutional money market funds is represented by

Answer: M3

Question: All of the following are examples of impacts of a falling dollar, EXCEPT

Overseas demand for U.S. products rise

Gas prices rise significantly

A favorable exchange rate for U.S. companies increases profits in foreign markets

U.S. tourism increases

Answer: Gas prices rise significantly

Question: Low discount rates encourage consumers to borrow money .

Answer: borrow money

Question: The President of the United States generally want interest rates to be extremely high; especially during election years.

Answer: false

Question: The percentage of commercial banks’ checking and savings accounts that must be physically kept in the bank is called the

Answer: Reserve requirement

Question: The rate at which other banks can loan money to one another is the

Answer: Federal Funds rate