Question 1

Discount rate decreases can speed up a sagging U.S.economy.

Accepted Answer

A) True 
 B)False

Question 2

A certificate of deposit (CD)is a demand deposit.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following is NOT part of the M-2 money supply?

Accepted Answer

A)  time deposits 
B)  money market mutual funds 
C)  M-1 
D)  government bonds 
A)  time deposits 
B)  money market mutual funds 
C)  M-1 
D)  government bonds

Question 4

The Fed's board of governors consists of ________ members appointed by the president.

Accepted Answer

A)  5 
B)  7 
C)  10 
D)  14 
A)  5 
B)  7 
C)  10 
D)  14

Question 5

Why might nations decline International Monetary Fund funds?

Accepted Answer

Such nations may not want to accept the

Question 6

Which of the following best describes the portability characteristic of money?

Accepted Answer

A)  It neither dies nor spoils and if it wears out, it can be replaced. 
B)  Units of money can be matched with the value of goods. 
C)  It allows people to measure the relative value of goods and services. 
D)  It is light and easy to handle. 
A)  It neither dies nor spoils and if it wears out, it can be replaced. 
B)  Units of money can be matched with the value of goods. 
C)  It allows people to measure the relative value of goods and services. 
D)  It is light and easy to handle.

Question 7

Describe the different kinds of financial institutions that comprise the U.S.financial system.Be sure to explain the services each offers.

Accepted Answer

The U.S.financial system includes commer

Question 8

A(n)________ is a tax-deferred pension fund with which wage earners supplement other retirement funds.

Accepted Answer

A)  letter of credit 
B)  individual retirement account 
C)  banker's acceptance 
D)  mutual fund 
A)  letter of credit 
B)  individual retirement account 
C)  banker's acceptance 
D)  mutual fund

Question 9

One of the functions of money is eliminating inflation.

Accepted Answer

A) True 
 B)False

Question 10

M-2 is often used for economic planning by business and government agencies.

Accepted Answer

A) True 
 B)False

Question 11

Banks create money by minting bills and coins.

Accepted Answer

A) True 
 B)False

Question 12

A ________ is a promise by a bank to pay a designated firm a specific amount at a future date.

Accepted Answer

A)  currency exchange 
B)  letter of credit 
C)  financial advisement 
D)  banker's acceptance 
A)  currency exchange 
B)  letter of credit 
C)  financial advisement 
D)  banker's acceptance

Question 13

________ is often used for economic planning by businesses and government agencies.

Accepted Answer

A)  Currency 
B)  M-1 
C)  M-2 
D)  A demand deposit 
A)  Currency 
B)  M-1 
C)  M-2 
D)  A demand deposit

Question 14

How did banks contribute to the mortgage crisis?

Accepted Answer

Banks and other lending instit

Question 15

The 7 members of the Federal Reserve's board of governors are appointed by the president and serve for overlapping terms of ________ years.

Accepted Answer

A)  2 
B)  4 
C)  10 
D)  14 
A)  2 
B)  4 
C)  10 
D)  14

Question 16

T-notes are treasury securities that mature to face value within

Accepted Answer

A)  a few weeks to a year 
B)  2 and 10 years 
C)  30 years 
D)  none of the above 
A)  a few weeks to a year 
B)  2 and 10 years 
C)  30 years 
D)  none of the above

Question 17

The Federal Reserve decides how many bills to produce and how many to destroy,illustrating the divisibility characteristic of money.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following has a fixed term?

Accepted Answer

A)  demand deposits 
B)  time deposits 
C)  money market mutual funds 
D)  savings accounts 
A)  demand deposits 
B)  time deposits 
C)  money market mutual funds 
D)  savings accounts

Question 19

How did the collectability of mortgage loans change between 2000 and 2008?

Accepted Answer

From 2000 to 2005,only 6 perce

Question 20

U.S.currency passes from hand to hand over a period of time without degrading.This demonstrates that it is ________.

Accepted Answer

A)  portable 
B)  divisible 
C)  stable 
D)  durable 
A)  portable 
B)  divisible 
C)  stable 
D)  durable

Discount rate decreases can speed up a sagging U.S.economy.

A certificate of deposit (CD)is a demand deposit.

Which of the following is NOT part of the M-2 money supply?

The Fed's board of governors consists of ________ members appointed by the president.

Why might nations decline International Monetary Fund funds?

Which of the following best describes the portability characteristic of money?

Describe the different kinds of financial institutions that comprise the U.S.financial system.Be sure to explain the services each offers.

A(n)________ is a tax-deferred pension fund with which wage earners supplement other retirement funds.

One of the functions of money is eliminating inflation.

M-2 is often used for economic planning by business and government agencies.

Banks create money by minting bills and coins.

A ________ is a promise by a bank to pay a designated firm a specific amount at a future date.

________ is often used for economic planning by businesses and government agencies.

How did banks contribute to the mortgage crisis?

The 7 members of the Federal Reserve's board of governors are appointed by the president and serve for overlapping terms of ________ years.

T-notes are treasury securities that mature to face value within

The Federal Reserve decides how many bills to produce and how many to destroy,illustrating the divisibility characteristic of money.

Which of the following has a fixed term?

How did the collectability of mortgage loans change between 2000 and 2008?

U.S.currency passes from hand to hand over a period of time without degrading.This demonstrates that it is ________.

The U.S.Business Environment

Business Ethics and Social Responsibility

Entrepreneurship, New Ventures, and Business Ownership

The Global Context of Business

Business Management

Organizing the Business

Operations Management and Quality

Employee Behavior and Motivation

Leadership and Decision Making

Human Resource Management and Labor Relations

Marketing Processes and Consumer Behavior

Pricing, Distributing, and Promoting Products

The Role of Accountants and Accounting Information

Managing Finances

Filters

Exam 15: Money and Banking

Discount rate decreases can speed up a sagging U.S.economy.

A certificate of deposit (CD)is a demand deposit.

Which of the following is NOT part of the M-2 money supply?

The Fed's board of governors consists of ________ members appointed by the president.

Why might nations decline International Monetary Fund funds?

Which of the following best describes the portability characteristic of money?

Describe the different kinds of financial institutions that comprise the U.S.financial system.Be sure to explain the services each offers.

A(n)________ is a tax-deferred pension fund with which wage earners supplement other retirement funds.

One of the functions of money is eliminating inflation.

M-2 is often used for economic planning by business and government agencies.

Banks create money by minting bills and coins.

A ________ is a promise by a bank to pay a designated firm a specific amount at a future date.

________ is often used for economic planning by businesses and government agencies.

How did banks contribute to the mortgage crisis?

The 7 members of the Federal Reserve's board of governors are appointed by the president and serve for overlapping terms of ________ years.

T-notes are treasury securities that mature to face value within

The Federal Reserve decides how many bills to produce and how many to destroy,illustrating the divisibility characteristic of money.

Which of the following has a fixed term?

How did the collectability of mortgage loans change between 2000 and 2008?

U.S.currency passes from hand to hand over a period of time without degrading.This demonstrates that it is ________.

The U.S.Business Environment

Business Ethics and Social Responsibility

Entrepreneurship, New Ventures, and Business Ownership

The Global Context of Business

Business Management

Organizing the Business

Operations Management and Quality

Employee Behavior and Motivation

Leadership and Decision Making

Human Resource Management and Labor Relations

Marketing Processes and Consumer Behavior

Pricing, Distributing, and Promoting Products

The Role of Accountants and Accounting Information

Managing Finances

Filters