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Study Guide Questions

1.     Money, as a medium of exchange, enables us to trade our labor for the labor of others without ___________________.
2.     Money, as a standard of __________________ , measures value in terms of mediums of exchange.
3.     Money, as a _________________________ of value, makes it possible to save the value of what we sell for a later date.
4.     To be efficient, money that is saved must be loaned to others at a rate of ______________________________ they can afford to pay.
5.     The nation's commercial banks create our money supply by making ______________________ .
6.     All borrowers except the ________________ ______________________ must repay the money that has been borrowed.
7.     Only the ______________________ can permanently increase the money supply to take care of growth.
8.     When there is much unemployment and prices continue to rise, it means there is plenty of money, but that unwise ______________________ policies keep it from being used for the good of all people.
9.     _________________ cuts reduce the amount of money that's available to operate the government.
10.     _________________________ will stop rising prices, but at the cost of hardships to workers.
11.     Government spending for productive jobs will add to the wealth of the _______________ .
12.     Massive _________________ _______________ projects are a sign that an economy is vibrant and that the government is looking to the future.
13.     If a government must spend money to help its unemployed, it would be better to spend the money to create ______________________ .
14.     Inflation, deflation, _____________________ , unemployment, and fluctuating prices are problems that can be solved if an informed electorate can convince its elected officials to act responsibly.
© Educational Video Network, Inc. 2005 - www.evndirect.com
Your leading source for curriculum-based educational videos and DVDs.