2. Who Wants to be a Millionaire!? Monetary Policy

3. Fastest Finger Question #1:

4. List the following groups in order based on salary: (starting with the least) A. Teacher A. Teacher B. Airline pilot B. Airline pilot C. Carpenter C. Carpenter

5. …And the Winner Is… C. Carpenter C. Carpenter A. Teacher A. Teacher B. Pilot B. Pilot

6. Road to Riches… 1 Ex 1 Ex 2 Extr 2 Extr 3 Extra 3 Extra 4 Extra Cre 4 Extra Cre 5 Extra Credit 5 Extra Credit ASK A FRIEND! 50/50

7. Money that has an alternative use: (1 Point) A. Fiat money C. Convertible money B. Commodity money D. Monopoly money

8. Something accepted by all parties as payment for goods and services (2 Points) A. Currency C. Fiat Money B. Medium of exchange D. Gold

9. The interest rate the Fed. Charges its member banks? (4 Points) A. Prime rate C. Excessive rate B. Discount rate D. Reserve rate

10. Rule stating that a percentage of every deposit be set aside as legal reserves: (6 Points) A. Discount rate C. Reserve requirement B. Gold standard D. Excess reserves

11. Excessive increases in the monetary supply lead to: (8 Points!) A. Deflation C. Inflation B. Low interest rates D. High interest rates

12. List the following commodities by price – lowest to highest: A. Silver A. Silver B. Platinum B. Platinum C. Gold C. Gold

13. …And the Winner Is… A. Silver A. Silver C. Gold C. Gold B. Platinum B. Platinum

14. The Fed. Must constantly choose between two evils. They are: (1 Point) A. Consumers C. Inflation B. Banks D. Recession

15. The Fed. does all of the following services EXCEPT: (2 Points) A. Oversees the activities of the Treasury Dept. C. Enforces consumer legislation B. Maintains currency / coins D. Clears checks

16. Which scenario indicates ‘easy/loose money policy’: (4 Points) A. Selling gov. securities C. Raising the discount rate B. Decreasing the reserve requirement D. Raising the price of milk

17. How does the gov. measure inflation from year to year? (6 Points) A. Current GDP C. Producer price index B. GDP price deflator D. Consumer price index

18. Which is a good explanation of the wage-price spiral? (8 Points) A. Fed. Produces more money, so wages go up C. Prices drop, then wages drop B. Wages go up when prices rise D. A funnel cloud produces by high wages

19. List the following from lowest to highest percentage: A. Rate for students A. Rate for students B. Prime rate B. Prime rate C. Discount rate C. Discount rate

20. …And the Winner Is… C. discount rate C. discount rate B. prime rate B. prime rate A. rate for students A. rate for students

21. Our current money is ? (1 Point) A. Specie money C. Backed by silver B. Inconvertible fiat money D. worthless

22. Properties, possessions…stuff you have? (2 Points) A. assets C. liquidity B. liabilities D. balances

23. Our current money has value because? (4 Points) A. It is backed by the gold std. C. It is portable, durable, and divisible B. Government said you must use it D. Public confidence in it

24. If a person robs a bank and your money is stolen, the gov. will insure it: (6 Points) A. True C. Only up to $1,000 B. False D. Only if the robber gets away

25. How does the Fed. influence your purchasing power? (8 Points) A. They incentivize borrowing C. They control the CPI B. They set prices of consumer goods D. They decide whether your check is good or not

26. List the following items in order based on percentage charged by banks: (starting with the lowest) A. Credit card A. Credit card B. Car loan B. Car loan C. Mortgage (home loan) C. Mortgage (home loan)

27. …And the Winner Is… C. Mortgage (home loan) C. Mortgage (home loan) B. Car loan B. Car loan A. Credit card A. Credit card

28. Who might get hurt by inflation? (1 Point) A. Consumers who don’t get a raise C. People with credit card debt B. Investors in the stock market D. Gold speculators

29. If the FED loaned BofA $10,000 at 5% interest, how much money will they make over one year? (2 Points) A. $5 C. $500 B. $50 D. $0 – the Fed doesn’t make a profit b/c they are part of the government

30. If the Treasury Dept. and FED wanted to encourage loose money policy, they might? (3 Points) A. Raise the reserve requirement C. Raise the Discount Rate B. Lower the reserve requirement D. Not wear a belt

31. Which would be an example of commodity money? (4 Points)A.C.B. D. Dolphin Teeth

32. If the FED used open market operations to get money out of circulation / fight inflation, it would? (5 Points) A. Sell t-bills C. Print money B. Buy t-bills D. Lower interest rates