Chapter 24 Study Guide by ashrafp


									Chapter 24 Study Guide

   1. List the 3 functions of money.
   2. Describe the two kinds of currency we use.
   3. What type of institution is each of the following:
           a. Bank of America or Wells Fargo
           b. State Employees Credit Union
           c. Swiss Bank Account
   4. What country has one of the safest banking systems in the world?
   5. What is the name of the Central Bank of the United States?
   6. What is the Fed’s nickname and why?
   7. Name the two parts the Fed is broken into.
   8. Who chooses and approves members of the Board of Governors? How long of a term do they serve?
   9. What is the Advisory Councils’ main job? Give one example of an Advisory Council.
   10. Who or what does the Fed regulate?
   11. Name 2 ways the Fed acts as the US government’s bank?
   12. T/F: The Fed controls the amount of currency that is in the United States.
   13. To control the money supply of the US, the Fed can increase or decrease rates charged to banks for
       loans. This is called a ___________ ____________.
   14. The Fed requires banks to have a certain amount of money in their vaults at all times. This is called a
   15. When the Fed sells or buys government bonds, they are controlling the amount of money in the US.
       Selling or buying bonds is part of an _________ _________ _________.
   16. When the Fed _________ bonds, they are taking money away from the people and keeping it.
   17. When the fed ___________ bonds, they are putting more money in the people’s hands.
   18. Name three types of deposit accounts in banks.
   19. What type of account does each of the following describe?
           a. Money has to stay in for a certain period of time.
           b. Money can be withdrawn from the account by checks or debit cards.
           c. Deposited money earns interest but can be withdrawn at any time.
   20. What event led to the starting of the FDIC?
   21. What is the FDIC?

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