1. How Do Economists Define Money?

Chapter 24 Worksheet

Section 1 1. How do economists define money?

2. What are three functions of money?

3. What do financial institutions do with the money placed into it by people and businesses?

4. What is the FDIC?

5. What two factors make the United States financial system so safe?

6. What type of financial institution works on a non-profit basis? 7. Why does money have value? Section 2 8. How many members make up the Board of Governors? How do they get these positions?

9. What are the three ways that the Fed acts as the government’s bank?

10. What are three tools the Fed uses to manipulate the money supply?

11. What is monetary policy?

12. What is the central bank of the United States? How many districts is it divided in to?

Section 3 13. What are checking accounts used for?

14. What is an advantage of savings accounts?

15. Who starts banks?