Which one of the following institutions has the ability to create government bonds?

a) The President

b) The Federal Reserve

c) The Treasury Department

d) The Office of Management and Budget

2

Money (M1 definition) includes all of the following except:

a) Traveler's check

b) Checking accounts

c) Currency

d) Certificates of Deposit (CDs)

3

Suppose an economy's currency could easily be counterfeited by people in the economy, without risk of being caught. For which of the following functions of money would this be the biggest problem?

a) Medium of Exchange

b) Store of Value

c) Unit of Account