1) The Federal Reserve provides gold in exchange for Federal Reserve notes.

T or F

2) Whatever functions as money must be _____

	a.	accepted as deposit by banks.
	b.	varied in quality.
	c.	limited in supply.
	d.	completely indestructible.
	e.	backed by precious metals like gold or silver.

3) A decrease in the interest rate, other things constant, will _____

	a.	decrease the quantity of loanable funds supplied.
	b.	decrease the quantity of loanable funds demanded.
	c.	shift the demand for loanable funds curve to the right.
	d.	shift the supply of loanable funds curve to the right.
	e.	shift the supply of loanable funds curve to the left.