BADM Exam 4 Questions and
Answers 100% PASS
Leondra looks over her Algebra homework and says to herself "This looks hard. I
know I can do it, but I probably need to plan extra time to work on it and make
sure I understand it." Leondra is exhibiting a - CORRECT ANSWER-growth
mindset
Money has taken a range of forms across centuries and cultures—some more
practical than others. In order to be useful (and support economic growth) money
needs to serve the following functions: - CORRECT ANSWER-medium of
exchange, store of value and unit of account.
Barter involves trading one good or service for another rather than using money to
facilitate the exchange. From an economics standpoint, the greatest disadvantage
of using barter is that: - CORRECT ANSWER-barter limits economic productivity
and growth.
Technology developments have enabled a variety of alternative currencies and
payment options including cryptocurrencies, mobile wallets brand or regionally-
,based currencies. Although the underlying technologies may differ, the common
denominator is they: - CORRECT ANSWER-are not a viable replacement for
money at this time.
An individual walks to a local sandwich shop and uses a $10 bill to pay for a $6
sandwich, receiving $4 as change for this transaction. The $6 price of the sandwich:
- CORRECT ANSWER-is a precise measurement of the value of the sandwich.
You need to have your gutters cleaned in the spring but have no ladder and are
really afraid of heights. Buddy lives down the street and owns a roofing business.
You contact Buddy and ask him if he will come clean out your gutters and in
exchange you will make him a wreath he can hang on his door at the holidays. He
agrees to the exchange. What type of system have you used in this transaction? -
CORRECT ANSWER-A barter system because each person gets something of
value.
Apple Pay is an example of which of the following? - CORRECT ANSWER-
mobile commerce
The Federal Reserve System reports on money stock measures at an individual
component and summary level, distinguishing between M1 and M2 money supply
categories. Which of the following statements accurately describes the primary
components of the two money supplies? - CORRECT ANSWER-M1 includes
coins and currency in circulation and checking accounts; M2 includes M1, savings
and money market accounts.
© 2026 Copyright. All Rights Reserved. This document is
protected by copyright law
, Banks facilitate the effective use of money in our payment system by: - CORRECT
ANSWER-Accepting and aggregating deposits and loaning those funds (in part) to
borrowers.
The Federal Reserve System is the central bank of the United States, an institution
established by the Federal Reserve Act of 1913, the parameters of which can be
amended by Congress. As a central bank, the key functions of the Fed are: -
CORRECT ANSWER-To conduct monetary policy, support financial system
stability and provide banking services to banks and the federal government
The Fed's monetary policy objectives are price stability, maximum employment
and long-term economic growth. Which of the following are tools the Fed uses to
implement monetary policy? - CORRECT ANSWER-proposing interest rate and
reserve rate legislation
If the federal government wanted to find out how much M2 money (excluding
M1) is in circulation in the US, they would look at which of the following? -
CORRECT ANSWER-savings accounts
What government entity is responsible for monitoring the U.S. money supply? -
CORRECT ANSWER-Federal Reserve
The Federal Reserve raises the reserve requirement from 7 percent to 8 percent.
Consequently banks must set aside more money and consequently have less money
to lend. The result is that the banks will raise the interest rate they charge to their
customers. These conditions make it harder and more expensive for people and
Answers 100% PASS
Leondra looks over her Algebra homework and says to herself "This looks hard. I
know I can do it, but I probably need to plan extra time to work on it and make
sure I understand it." Leondra is exhibiting a - CORRECT ANSWER-growth
mindset
Money has taken a range of forms across centuries and cultures—some more
practical than others. In order to be useful (and support economic growth) money
needs to serve the following functions: - CORRECT ANSWER-medium of
exchange, store of value and unit of account.
Barter involves trading one good or service for another rather than using money to
facilitate the exchange. From an economics standpoint, the greatest disadvantage
of using barter is that: - CORRECT ANSWER-barter limits economic productivity
and growth.
Technology developments have enabled a variety of alternative currencies and
payment options including cryptocurrencies, mobile wallets brand or regionally-
,based currencies. Although the underlying technologies may differ, the common
denominator is they: - CORRECT ANSWER-are not a viable replacement for
money at this time.
An individual walks to a local sandwich shop and uses a $10 bill to pay for a $6
sandwich, receiving $4 as change for this transaction. The $6 price of the sandwich:
- CORRECT ANSWER-is a precise measurement of the value of the sandwich.
You need to have your gutters cleaned in the spring but have no ladder and are
really afraid of heights. Buddy lives down the street and owns a roofing business.
You contact Buddy and ask him if he will come clean out your gutters and in
exchange you will make him a wreath he can hang on his door at the holidays. He
agrees to the exchange. What type of system have you used in this transaction? -
CORRECT ANSWER-A barter system because each person gets something of
value.
Apple Pay is an example of which of the following? - CORRECT ANSWER-
mobile commerce
The Federal Reserve System reports on money stock measures at an individual
component and summary level, distinguishing between M1 and M2 money supply
categories. Which of the following statements accurately describes the primary
components of the two money supplies? - CORRECT ANSWER-M1 includes
coins and currency in circulation and checking accounts; M2 includes M1, savings
and money market accounts.
© 2026 Copyright. All Rights Reserved. This document is
protected by copyright law
, Banks facilitate the effective use of money in our payment system by: - CORRECT
ANSWER-Accepting and aggregating deposits and loaning those funds (in part) to
borrowers.
The Federal Reserve System is the central bank of the United States, an institution
established by the Federal Reserve Act of 1913, the parameters of which can be
amended by Congress. As a central bank, the key functions of the Fed are: -
CORRECT ANSWER-To conduct monetary policy, support financial system
stability and provide banking services to banks and the federal government
The Fed's monetary policy objectives are price stability, maximum employment
and long-term economic growth. Which of the following are tools the Fed uses to
implement monetary policy? - CORRECT ANSWER-proposing interest rate and
reserve rate legislation
If the federal government wanted to find out how much M2 money (excluding
M1) is in circulation in the US, they would look at which of the following? -
CORRECT ANSWER-savings accounts
What government entity is responsible for monitoring the U.S. money supply? -
CORRECT ANSWER-Federal Reserve
The Federal Reserve raises the reserve requirement from 7 percent to 8 percent.
Consequently banks must set aside more money and consequently have less money
to lend. The result is that the banks will raise the interest rate they charge to their
customers. These conditions make it harder and more expensive for people and
