Money Is

question 18

Multiple Choice

Money is

• A) anything that is generally accepted in payment for goods and services or in the repayment of debt.
• B) a flow of earnings per unit of time.
• C) the total collection of pieces of property that are a store of value.
• D) always based on a precious metal like gold or silver.

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Definitions:

Recession

An episode of provisional economic downturn, during which industrial and commercial activities decrease, customarily identified by a GDP drop in two consecutive quarters.

Money Supply

The sum of all financial resources present in an economy at a given moment, encompassing currency, deposits in banks, and other assets that can be quickly converted into cash.

Federal Reserve

The principal banking authority in the United States, responsible for overseeing the nation's financial and monetary systems.

Reserve Requirement

The reserve requirement is a central banking regulation that sets the minimum amount of reserves that must be held by a commercial bank, not to be loaned out, to ensure bank liquidity and stability.