The document contains 4 multiple choice questions about economic and monetary topics: 1. Money that has an alternative use as an economic good is commodity money. 2. The FDIC was established to protect the savings of the American people. 3. Continental dollars printed during the Revolutionary War became nearly worthless because too much was printed. 4. When money is easily transferred, it is portable. Raising interest rates will likely result in fewer businesses and individuals applying for loans, decreasing the money supply.

1. Question 23
Not yet answered
Marked out of 1.00
Flag question
Question text
Money that has an alternative use as an economic good is
Select one:
a. commodity money.
b. fiat money.
c. specie.
d. wampum.
Question 24
Not yet answered
Marked out of 1.00
Flag question
Question text
The FDIC was established to
Select one:
a. create a government banking monopoly.
b. protect the savings of the American people.
c. help with the financing of World War II.
d. federalize the banking system.
Question 25
Not yet answered
Marked out of 1.00
Flag question
Question text
The problem with Continental dollars, which were printed during the Revolutionary War, was
that
Select one:
a. they were backed by gold and not silver.
b. they were fiat money.
c. they were backed by individual states.
d. so much was printed they became nearly worthless.
Question 26

2. Not yet answered
Marked out of 1.00
Flag question
Question text
When money is easily transferred from one person to another, it is said to be
Select one:
a. accepted.
b. portable.
c. divisible.
d. durable.
Question 27
Not yet answered
Marked out of 1.00
Flag question
Question text
Which of the following will most likely happen if interest rates are raised?
Select one:
a. Fewer businesses and private citizens will apply for loans and there will be a general decrease
in the money supply.
b. More private citizens and businesses will apply for loans.
c. Businesses will likely apply for more loans, while private citizens may or may not.
d. The money supply will expand
Solution
Hi,
The correct answers are as follows:
23. commodity money
24. protect the savings of the American people
25. so much was printed they became nearly worthless.
Eplanation: Paper money issued to finance the Revolutionary War. A large volume was printed
to pay soldiers and supplies. So much was printed it made the currency virtually worthless.
26. Portable
27. . Fewer businesses and private citizens will apply for loans and there will be a general
decrease in the money supply