Question

Match each type of money to the corresponding definition.

Answer 1

*money that can be exchanged for a commodity at a fixed rate

commodity-backed money ~commodity-backed money

*an exchangeable good of intrinsic value, such as silver or tobacco~commodity money

*paper bills and coins used as money~currency

*money that has no value except as a medium of exchange~fiat money

Step-by-step explanation:

Fiat money has value by virtue of the law stating that it can be used to pay debts.

Answer 2

The purchase or sale of bonds by the central bank
Correct label: Open market operations
The number of deposits a bank must hold in reserve and cannot lend
Correct label: The reserve requirement
Money lent by the Fed to private banks
Correct label: Discount loans
Rate of interest paid by private banks to the Fed
Correct label: A discount rate