Question 1

"Did you know that you can't use that financial institution unless you work for the phone company?" Such a question would normally refer to ________.

Accepted Answer

A)  a mutual savings bank 
B)  a savings and loan association 
C)  a commercial bank 
D)  a credit union 
A)  a mutual savings bank 
B)  a savings and loan association 
C)  a commercial bank 
D)  a credit union

Question 2

Describe the three functions of the Federal Reserve.

Accepted Answer

The three functions of the Federal Reser

Question 3

The Federal Reserve System serves as "the bankers' bank."

Accepted Answer

A) True 
 B)False

Question 4

A slogan for a credit union might be: "Everyone is welcome to join our credit union."

Accepted Answer

A) True 
 B)False

Question 5

The FDIC clears checks for commercial banks to ensure that cash is deducted from the check writer's account and deposited in the check receiver's account.

Accepted Answer

A) True 
 B)False

Question 6

Sometimes a bank will perform such tasks as making monthly bill payments,managing investment portfolios,or managing the estates of deceased persons.What are such services called?

Accepted Answer

A)  special banker's services 
B)  public services 
C)  trust services 
D)  amalgamation 
A)  special banker's services 
B)  public services 
C)  trust services 
D)  amalgamation

Question 7

A banker's acceptance requires payment by a specified date.

Accepted Answer

A) True 
 B)False

Question 8

Money functions as a medium of exchange.

Accepted Answer

A) True 
 B)False

Question 9

According to the text,which of the following is NOT a characteristic of money?

Accepted Answer

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

Question 10

How many Federal Reserve Banks are there currently in the United States?

Accepted Answer

A)  6 
B)  10 
C)  12 
D)  15 
A)  6 
B)  10 
C)  12 
D)  15

Question 11

The value of money depends on its ________.

Accepted Answer

A)  supply 
B)  divisibility 
C)  currency unit 
D)  all of these 
A)  supply 
B)  divisibility 
C)  currency unit 
D)  all of these

Question 12

About how many ATMs are located in U.S.bank buildings and other locations?

Accepted Answer

A)  20,000 
B)  120,000 
C)  360,000 
D)  550,000 
A)  20,000 
B)  120,000 
C)  360,000 
D)  550,000

Question 13

Commercial banks do not pay for FDIC membership.

Accepted Answer

A) True 
 B)False

Question 14

Because the U.S.dollar varies only slightly in its ability to purchase goods,it is considered ________.

Accepted Answer

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

Question 15

The USA Patriot Act,passed in 2001,is designed to reduce bank risks.

Accepted Answer

A) True 
 B)False

Question 16

At ________,all depositors are considered to be owners of the institution.

Accepted Answer

A)  commercial banks 
B)  savings and loan associations 
C)  mutual savings banks 
D)  downtown major banks 
A)  commercial banks 
B)  savings and loan associations 
C)  mutual savings banks 
D)  downtown major banks

Question 17

Demand deposits and time deposits are the same.

Accepted Answer

A) True 
 B)False

Question 18

A letter of credit is a bank promise to pay a designated firm a specified amount at a future date.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following will result in an increase in the money supply?

Accepted Answer

A)  an increase in reserve requirements 
B)  an increase in the discount rate 
C)  a decrease in reserve requirements 
D)  an increase in taxes 
A)  an increase in reserve requirements 
B)  an increase in the discount rate 
C)  a decrease in reserve requirements 
D)  an increase in taxes

Question 20

Discuss the functions of the Federal Reserve System,and describe the tools that the Fed uses to control the money supply.

Accepted Answer

The Fed is the nation's central bank.As

"Did you know that you can't use that financial institution unless you work for the phone company?" Such a question would normally refer to ________.

Describe the three functions of the Federal Reserve.

The Federal Reserve System serves as "the bankers' bank."

A slogan for a credit union might be: "Everyone is welcome to join our credit union."

The FDIC clears checks for commercial banks to ensure that cash is deducted from the check writer's account and deposited in the check receiver's account.

Sometimes a bank will perform such tasks as making monthly bill payments,managing investment portfolios,or managing the estates of deceased persons.What are such services called?

A banker's acceptance requires payment by a specified date.

Money functions as a medium of exchange.

According to the text,which of the following is NOT a characteristic of money?

How many Federal Reserve Banks are there currently in the United States?

The value of money depends on its ________.

About how many ATMs are located in U.S.bank buildings and other locations?

Commercial banks do not pay for FDIC membership.

Because the U.S.dollar varies only slightly in its ability to purchase goods,it is considered ________.

The USA Patriot Act,passed in 2001,is designed to reduce bank risks.

At ________,all depositors are considered to be owners of the institution.

Demand deposits and time deposits are the same.

A letter of credit is a bank promise to pay a designated firm a specified amount at a future date.

Which of the following will result in an increase in the money supply?

Discuss the functions of the Federal Reserve System,and describe the tools that the Fed uses to control the money supply.

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

"Did you know that you can't use that financial institution unless you work for the phone company?" Such a question would normally refer to ________.

Describe the three functions of the Federal Reserve.

The Federal Reserve System serves as "the bankers' bank."

A slogan for a credit union might be: "Everyone is welcome to join our credit union."

The FDIC clears checks for commercial banks to ensure that cash is deducted from the check writer's account and deposited in the check receiver's account.

Sometimes a bank will perform such tasks as making monthly bill payments,managing investment portfolios,or managing the estates of deceased persons.What are such services called?

A banker's acceptance requires payment by a specified date.

Money functions as a medium of exchange.

According to the text,which of the following is NOT a characteristic of money?

How many Federal Reserve Banks are there currently in the United States?

The value of money depends on its ________.

About how many ATMs are located in U.S.bank buildings and other locations?

Commercial banks do not pay for FDIC membership.

Because the U.S.dollar varies only slightly in its ability to purchase goods,it is considered ________.

The USA Patriot Act,passed in 2001,is designed to reduce bank risks.

At ________,all depositors are considered to be owners of the institution.

Demand deposits and time deposits are the same.

A letter of credit is a bank promise to pay a designated firm a specified amount at a future date.

Which of the following will result in an increase in the money supply?

Discuss the functions of the Federal Reserve System,and describe the tools that the Fed uses to control the money supply.

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