FINANCIAL LITERACY MODULE 1 TEST
AND ANSWERS.
What are the six characteristics money must have? - Answers-Durable, Portable,
Divisible, Scarce, Uniform, and Acceptable
A __________ regulates the supply of money in a country, issues currency in the
country, and oversees the country's banks. - Answers-The Bureau of Engraving and
Printing (BEP)
The __________ supervise many of the nation's banks to make sure they stay healthy
and play by the rules. - Answers-Federal Reserve, or FED.
What is the Federal Reserve and what all does it do? - Answers-Or the Fed, is the
central bank of the United States. Supervises and regulate bank and other financial
institutes, ensures the nations banking systems safety, and credit rights of consumers.
What does the Bureau of Engraving and Printing (BEP) do? - Answers-A government
agency within the U.S. Treasury Department that designs, engraves and prints all paper
money for the U.S.
What types of money are used in the United States? - Answers-Physical Money,
currency and coins
What are some anti-counterfeiting security measures used in U.S. currency? - Answers-
Microprinting, Watermark, Security Thread, and Color Shifting Ink.
What does "pegging currency" mean? - Answers-Setting the exchange value of their
domestic currency
How long does the average one-dollar bill last in circulation? - Answers-Until the
Federal Reserve issues it as lawful money.
What is the largest bill denomination in circulation in the U.S.? - Answers-100 dollar bill
Medium of Exchange - Answers-anything that is traded broadly for goods and services
in an economy.
Unit of Account - Answers-the unit by which the prices of all other items are quoted.
Store of Value - Answers-the function of an asset (money) that can be saved, retrieved
and exchanged at a later time, and be predictably useful when retrieved.
AND ANSWERS.
What are the six characteristics money must have? - Answers-Durable, Portable,
Divisible, Scarce, Uniform, and Acceptable
A __________ regulates the supply of money in a country, issues currency in the
country, and oversees the country's banks. - Answers-The Bureau of Engraving and
Printing (BEP)
The __________ supervise many of the nation's banks to make sure they stay healthy
and play by the rules. - Answers-Federal Reserve, or FED.
What is the Federal Reserve and what all does it do? - Answers-Or the Fed, is the
central bank of the United States. Supervises and regulate bank and other financial
institutes, ensures the nations banking systems safety, and credit rights of consumers.
What does the Bureau of Engraving and Printing (BEP) do? - Answers-A government
agency within the U.S. Treasury Department that designs, engraves and prints all paper
money for the U.S.
What types of money are used in the United States? - Answers-Physical Money,
currency and coins
What are some anti-counterfeiting security measures used in U.S. currency? - Answers-
Microprinting, Watermark, Security Thread, and Color Shifting Ink.
What does "pegging currency" mean? - Answers-Setting the exchange value of their
domestic currency
How long does the average one-dollar bill last in circulation? - Answers-Until the
Federal Reserve issues it as lawful money.
What is the largest bill denomination in circulation in the U.S.? - Answers-100 dollar bill
Medium of Exchange - Answers-anything that is traded broadly for goods and services
in an economy.
Unit of Account - Answers-the unit by which the prices of all other items are quoted.
Store of Value - Answers-the function of an asset (money) that can be saved, retrieved
and exchanged at a later time, and be predictably useful when retrieved.
