Any commodity or token that is generally accepted as a means of payment is1) __________. A 2) __________ (unit of account; store of value; medium of exchange) is an object that is generally accepted in return for goods and services. A3) __________ (unit of account; store of value; medium of exchange) is an agreed-upon measure for stating prices of goods and services. A 4) __________ (unit of account; store of value; medium of exchange) is any commodity or token that can be held and exchanged later for goods and services. Currency inside the banks 5) __________ (is; is not) money and currency outside the banks 6) __________ (is; is not) money. A credit card 7) __________ (is; is not)money. M1 is 8) __________ (more; less) than M2. Checkable deposits 9)_ __________ (are; are not) part of M1 and savings deposits 10) __________ (are; are not) part of M1.

The currency in a bank's vault is part of the bank's 11) __________ (reserves; loans). Banks can borrow or lend reserves in the 12) __________ (reserves; federal funds) market. At commercial banks in the United States, the majority of deposits 13) __________ (are; are not) checkable deposits.

There are 14) __________ (2; 6; 12) Federal Reserve Banks. The Fed's main policy-making committee is the

15) __________ (Board of Governors; Federal Open Market Committee).The Fed sets the minimum percentage of deposits that must be held as reserves, which is called the 16) __________ (discount rate; required reserve ratio). The interest rate at which the Fed stands ready to lend reserves to commercial banks is the 17) __________ (discount; open market operation) rate. Quantitative easing is an example of 18) __________. The purchase or sale of government securities by the Federal Reserve is an 19) __________.