Question: Before the development of money as a medium, which was used by people to exchange goods?

Answer: barter system

Question: Which statement accurately describes the relationship between commodity money and fiat money?

Answer: Commodity money has value in itself while fiat money has value only because it is given value.

Question: Which accurately describes the requirements banks must meet under a fractional reserve banking system?

Answer: Banks must keep a specific percentage of deposits on hand.

Question: Which is the purpose of the Federal Reserve Bank?

Answer: manage the growth of the U.S. economy

Question: Which can the Fed accomplish by raising or lowering the required reserve ratio?

Answer: increase or decrease the money supply

Question: Which explains how Treasury bonds can have an effect on the size of the money supply?

Answer: The Federal Reserve Bank can buy and sell Treasury bonds to raise or lower bank deposits.

Question: Which is an example of a businessman making an investment?

Answer: he contributes money to a partnership

Question: Which is a power enjoyed by a stockholder?

Answer: able to vote for members of the board of directors

Question: Which is traded in a commodity market?

Answer: unprocessed goods

Question: Which of the following accurately describes socially responsible investing?

Answer: Investors buy into companies with ethical practices they support.