MULTIPLE CHOICE. Choose the one alternative tha t best completes the statement or answers the question 1) The central bank of the United States is the 1) A) Federal Deposit Insurance Corporation. C) Securities and Exchange Commission. B) Federal Reserve. D) Department of the Treasury 2) Studying money, banking, and financial markets will help you to. A) get a job after your graduaty B) answer basic questions about financial relationships from family me C) better understand financial newspapers D) All of the above. 3) A will review a commercial bank's books to determine whether loans with delinquent payments impair a bank's capital. A) bank teller B) bank examiner C) broker D) loan officer 4) The most prominent role for money is to serve as a 4) A) source of income. B) means of payment D) standard of value. C) form of credit. 5) You just bought a new car. In this transaction, you used money as a 5) A) means of payment C) standard of value. B) form of credit. D) source of income. 6) The M1 definition of money includes 6) A) currency outside banks plus checkable deposits plus retail money market deposit accounts B) currency outside banks plus checkable deposits plus small-denomination time deposits. C) currency outside banks plus checkable deposits plus traveler's checks. D) currency outside banks plus checkable deposits and Eurodollars A highly liquid asset is one that 7) A) appreciates over time. B) can be quickly tuned into the medium of exchange without loss C) loses its value. D) cannot be used in financial transactions