Lesson 11 Making Money Quiz

The Department of the Treasury is responsible for printing money, collecting taxes, and managing U.S. bank accounts. It is a government agency that handles financial matters and ensures the stability and integrity of the U.S. economy.

Currency is another word for money because it refers to the system of money that is used in a particular country or region. It includes coins and banknotes that are used as a medium of exchange for goods and services. Currency is a commonly used term to describe the form of money that is widely accepted in a specific area. It is the correct answer because the other options, pension, deflation, and standard, do not have the same meaning as currency in the context of money.

The correct answer is "The Billion Dollar Congress". The explanation is that this Congress gave away most of the surplus in the form of pensions to Civil War veterans and raised tariffs so high that the government's income from those taxes almost disappeared. This caused people to stop buying expensive foreign goods and put our nation into debt.

A monetary system refers to the accepted standard of value and measure of wealth in a country. It encompasses the currency, banking system, and financial institutions that facilitate the exchange of goods and services. The monetary system plays a crucial role in the economy by providing a medium of exchange, store of value, and unit of account. It allows for the efficient allocation of resources and facilitates economic transactions within a country.

During the Civil War, Abraham Lincoln issued "greenbacks" as a form of currency to finance the war effort. These greenbacks were not backed by a valuable substance like gold or silver, making them fiat money. The issuance of greenbacks helped to increase the money supply and fund the war without relying solely on taxes or tariffs.

The correct answer is the Federal Reserve System. The Federal Reserve System is an independent organization that controls the supply of money in the United States. It was proposed by the Populist Party and made into law in the 20th century. The Federal Reserve System is responsible for regulating banks, conducting monetary policy, and maintaining the stability of the financial system.

A tariff is a tax imposed on goods that are imported into a country from another country. It is a measure taken by the government to protect domestic industries and promote local production by making imported goods more expensive. Tariffs are typically used to control trade and protect domestic markets from foreign competition. They can be specific (a fixed amount per unit) or ad valorem (a percentage of the value of the imported goods). Tariffs can also be used as a source of revenue for the government.

A tax is a fee charged by the government on goods or on a person's income to pay for things the country needs like roads, bridges, the military, fire departments, police departments, and teachers. It is a compulsory payment that citizens and businesses are required to make to contribute to the functioning and development of the country. Taxes are used to fund public services and infrastructure and are an essential part of a government's revenue system.

A guarantee is a promise that a certain amount of money has the same value as the valuable substance that is backing it. This means that the amount of money promised will be equivalent to the value of the substance, providing assurance to the individual receiving the guarantee.

Inflation refers to the rising prices of goods and services, which means that the value of money decreases over time. This results in the need for more money to purchase the same items. Inflation is a common economic phenomenon that can have various causes, such as increased demand, increased production costs, or changes in government policies.

Deflation is the correct answer because it refers to falling prices due to a decrease in the demand for goods. When there isn't much money available to pay for goods, people stop buying things, causing merchants to lower their prices until they become affordable. This decrease in prices is known as deflation.

Interest is the fee charged for using someone else's money. When individuals or businesses borrow money, they are required to pay interest on the borrowed amount as compensation to the lender. This fee is typically a percentage of the loan amount and is calculated based on the interest rate agreed upon between the borrower and lender. Interest is a common component of loans, mortgages, credit cards, and other forms of borrowing. It serves as a way for lenders to earn income on their investments and for borrowers to access funds they need.

Finite means a limited amount. It refers to something that has a definite end or is restricted in quantity or duration. It is the opposite of infinite or limitless. In this context, finite is the most suitable option as it directly relates to the given definition. Surplus means an excess or abundance, prosperity refers to wealth and success, and greenback is a term for US currency.

A pension is a type of retirement savings plan where an individual contributes a portion of their income each month. The unique aspect of a pension is that the employer also matches the employee's contribution, effectively doubling the amount saved. This money is then set aside and invested to grow over time, providing income for the employee when they retire.

An economy refers to the way a country manages its money and resources to produce, buy, and sell goods and services. It involves various aspects such as the allocation of resources, production, distribution, and consumption of goods and services within a country or region. The economy encompasses all economic activities and interactions between individuals, businesses, and the government. It plays a crucial role in determining the overall well-being and development of a country.

Money circulation refers to the money that is used in everyday life by the people of a country. It includes all the currency and coins in circulation, as well as the electronic transactions and bank deposits that make up the financial transactions within an economy. This is the money that individuals and businesses use to buy goods and services, pay bills, and conduct their daily economic activities. Money circulation is an essential component of a functioning economy as it facilitates the exchange of goods and services and helps to drive economic growth.

A long period during which the economy is poor and goes through deflation; however, instead of the economy recovering when merchants lower their prices like in deflation, people are so broke that they don't buy things no matter how low prices go is called a/an depression.

A bimetal standard refers to a monetary system where currency is backed by both silver and gold. This means that the value of the currency is directly linked to the amount of silver and gold reserves held by the government. This system provides stability and confidence in the currency as it is backed by tangible and valuable assets.

A surplus refers to a situation when the government has more money coming in than it is spending. This means that the government's income exceeds its expenses, resulting in a positive balance. A surplus can be beneficial as it allows the government to pay off debts, invest in infrastructure, or save for future needs. It indicates a healthy financial position and can contribute to economic stability and growth.

The Populist Party was a political party that represented the common person, such as farmers and factory workers. They aimed to improve the lives of average workers by advocating for the bimetal standard, crop standard, and democratic money system.