Problem 1
Explain the difference between the terms in each of these pairs. a. standard of value store of value b. commodity money representative money c. demand deposits near money
Problem 1
How are these three terms related? How are they different? a. automated teller b. debit card c. stored-value card machine
Problem 1
Use each of the three terms below in a sentence that illustrates the meaning of the term. a. state bank b. national bank c. \(\operatorname{gold}\) standard
Problem 2
Explain the relationship between the gold standard and the concept of representative money.
Problem 2
What are two reasons that people deposit money in banks?
Problem 2
Why are economic transactions easier with money than with barter?
Problem 3
How does the Federal Reserve System serve as a central bank?
Problem 3
Why is it important that money be divisible?
Problem 4
Why are checking accounts called demand deposits?
Problem 4
How did deregulation lead to a decrease in the number of banks between 1980 and the present?
