Exam 15: Money and Banking

A nondeposit financial institution that pools funds from its members to provide retirement income for its members is a(n)________.

Short Case Scenario 15-1 John Smith, a Minnesota native, has recently been elected to the U.S. House of Representatives. John, a long-time college professor, was elected on a platform of educational reform. Somehow, John finds himself appointed to the Joint Economic and Financial Services Committees. John is having a hard time understanding the testimony before each committee, but is hesitant to ask too many questions. -A recent report to the House reveals that unemployment continues to be high and that the economy is "sluggish." How might the Federal Reserve react to this information?

"Blink" technology refers to how fast a magnetic strip on a credit card works.

Prices are climbing and demand for goods and services is increasing.Which of the following is the Fed most likely to do?

Mary's savings account is with a financial institution that primarily makes loans to home buyers.Her financial institution is most likely a ________.

Certificates of deposit are an example of ________.

The nation's central bank is ________.

What is the prime rate?

Commercial banks are also referred to as thrift institutions.

Reserve requirements,interest rate controls,and open-market operations are the tools used by the Fed to control the money supply.

Short Case Scenario 15-1 John Smith, a Minnesota native, has recently been elected to the U.S. House of Representatives. John, a long-time college professor, was elected on a platform of educational reform. Somehow, John finds himself appointed to the Joint Economic and Financial Services Committees. John is having a hard time understanding the testimony before each committee, but is hesitant to ask too many questions. -How might John's committee members define the prime rate?

A savings account is part of the M-1 money supply.

Blink credit card technology is familiar in what form?

List and describe the tools used by the Fed to control the money supply.

When buying from a French supplier,for example,a ________ is a promise by a bank to pay the French firm a certain amount if specified conditions are met.

What role did consumers play in the mortgage crisis?

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

In international payments,equal money inflows and outflows can result in no money being transferred between countries.

David is saving $25 a week toward getting a new truck.This illustrates the ________ function of money.

The ________ is a United Nations agency consisting of about 150 nations that have combined resources to promote stable exchange rates,provide temporary short-term loans,and serve other purposes.