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Who Wants to be a Millionaire!?
Monetary Policy
Fastest Finger Question #1:
List the following groups in order
based on salary:
(starting with the least)
 A.
Teacher
 B. Airline pilot
 C. Carpenter
…And the Winner Is…
 C.
Carpenter
 A. Teacher
 B. Pilot
Road to Riches…
1 Ex
 2 Extr
 3 Extra
 4 Extra Cre
 5 Extra Credit

50/50
ASK A
FRIEND!
Money that has an alternative use:
(1 Point)
A. Fiat money
C. Convertible
money
B. Commodity
money
D. Monopoly
money
Something accepted by all parties as
payment for goods and services
(2 Points)
A. Currency
C. Fiat Money
B. Medium of
exchange
D. Gold
The interest rate the Fed. Charges its
member banks? (4 Points)
A. Prime rate
C. Excessive rate
B. Discount rate D. Reserve rate
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
Excessive increases in the monetary
supply lead to:
(8 Points!)
A. Deflation
C. Inflation
B. Low interest
rates
D. High interest
rates
List the following commodities
by price – lowest to highest:
 A.
Silver
 B. Platinum
 C. Gold
…And the Winner Is…
Silver
 C. Gold
 B. Platinum
 A.
The Fed. Must constantly choose
between two evils. They are:
(1 Point)
A. Consumers
C. Inflation
B. Banks
D. Recession
The Fed. does all of the following
services EXCEPT:
(2 Points)
A. Oversees the
activities of the
Treasury Dept.
B. Maintains
currency / coins
C. Enforces
consumer
legislation
D. Clears checks
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
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
Which is a good explanation of the
wage-price spiral?
(8 Points)
A. Fed. Produces
more money, so
wages go up
B. Wages go up
when prices rise
C. Prices drop,
then wages drop
D. A funnel
cloud produces
by high wages
List the following from lowest to
highest percentage:



A. Rate for students
B. Prime rate
C. Discount rate
…And the Winner Is…
discount rate
 B. prime rate
 A. rate for students
 C.
Our current money is ?
(1 Point)
A. Specie money C. Backed by
silver
B. Inconvertible
fiat money
D. worthless
Properties, possessions…stuff you
have?
(2 Points)
A. assets
C. liquidity
B. liabilities
D. balances
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 D. Public
said you must use confidence in it
it
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
How does the Fed. influence your
purchasing power?
(8 Points)
A. They
incentivize
borrowing
B. They set prices
of consumer goods
C. They control the
CPI
D. They decide
whether your check
is good or not
List the following items in order based
on percentage charged by banks:
(starting with the lowest)
 A.
Credit card
 B. Car loan
 C. Mortgage (home loan)
…And the Winner Is…
 C.
Mortgage (home loan)
 B. Car loan
 A. Credit card
Who might get hurt by inflation?
(1 Point)
A. Consumers who C. People with
don’t get a raise
credit card debt
B. Investors in the D. Gold
stock market
speculators
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
If the Treasury Dept. and FED
wanted to encourage loose money
policy, they might?
(3 Points)
A. Raise the
C. Raise the
reserve requirement Discount Rate
B. Lower the
D. Not wear a belt
reserve requirement
Which would be an example of
commodity money?
(4 Points)
A.
C.
B.
D. Dolphin Teeth
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