1) If money has become worn or torn, the Fed will destroy the money and replace it with a new bill, making the U.S. money system _____.

a

stable

b

sustainable

c

durable

d

divisible

e

portable

2) Money serves as a(n) _____, freeing us from a system of barter, where we must trade items of equal value.

a

medium of exchange

b

element of reserve

c

measure of worth

d

store of value

e

unit of account

3) A good money system should be _____, allowing the buyer to pay a precise amount.

a

portable

b

stable

c

divisible

d

durable

e

sustainable

4) The Fed works to assure the ____ of the money supply by using reserve requirements, interest rate controls, and open-market operations.

a

portability

b

divisibility

c

stability

d

sustainability

e

durability

5) Money acts as a(n) _____, allowing us to accumulate funds for future purchases or retirement.

a

element of reserve

b

unit of account

c

measure of worth

d

store of value

e

medium of exchange