Question 1

What is the difference between a credit card and a debit card?

Accepted Answer

Credit cards allow users to bo

Question 2

How do banks "create" money?

Accepted Answer

A)  They mint coins. 
B)  They print bills. 
C)  They take in deposits and make loans. 
D)  They create money by doing all of the above. 
A)  They mint coins. 
B)  They print bills. 
C)  They take in deposits and make loans. 
D)  They create money by doing all of the above.

Question 3

Which of the following best describes the stability 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)  Its value is relatively constant. 
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)  Its value is relatively constant.

Question 4

A(n)________ is a financial institution accepting deposits that it uses to make loans and earn profits.

Accepted Answer

A)  investment club 
B)  credit union 
C)  commercial bank 
D)  mutual savings bank 
A)  investment club 
B)  credit union 
C)  commercial bank 
D)  mutual savings bank

Question 5

Banks are subject to prosecution when they fail to maintain systems for identifying and reporting suspicious activities.

Accepted Answer

A) True 
 B)False

Question 6

What is the difference between a public pension fund and a private pension fund?

Accepted Answer

A public pension fund includes Social Se

Question 7

Which of the following best describes the durability 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)  Its value is relatively constant. 
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)  Its value is relatively constant.

Question 8

Which of the following will result in a decrease 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)  both an increase in reserve requirements and an increase in the discount rate 
A)  an increase in reserve requirements 
B)  an increase in the discount rate 
C)  a decrease in reserve requirements 
D)  both an increase in reserve requirements and an increase in the discount rate

Question 9

In mutual savings banks,all depositors are considered owners of the bank.

Accepted Answer

A) True 
 B)False

Question 10

The Federal Reserve System is the only federal agency that regulates banks.

Accepted Answer

A) True 
 B)False

Question 11

All nationally chartered banks are members of the Federal Reserve System,as are some state-chartered banks.

Accepted Answer

A) True 
 B)False

Question 12

The term ________ is another name for checking accounts.

Accepted Answer

A)  currency 
B)  time deposit 
C)  demand deposit 
D)  certificate of deposit 
A)  currency 
B)  time deposit 
C)  demand deposit 
D)  certificate of deposit

Question 13

How does e3bank use "the triple bottom line"?

Accepted Answer

"The triple bottom line" consi

Question 14

An example of a point-of-sale (POS)terminal is when you go to the grocery store and the system transfers funds from your account to the store's account.

Accepted Answer

A) True 
 B)False

Question 15

The M-1 money supply includes the most liquid forms of money.

Accepted Answer

A) True 
 B)False

Question 16

Insurance companies accumulate money from premiums charged for coverage.What do they invest these funds in?

Accepted Answer

They invest these fu

Question 17

Which of the following is NOT a function of money?

Accepted Answer

A)  medium of exchange 
B)  status symbol 
C)  store of value 
D)  measure of worth 
A)  medium of exchange 
B)  status symbol 
C)  store of value 
D)  measure of worth

Question 18

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.
-There is a discussion of M-1 and M-2.Explain M-1 and M-2.

Accepted Answer

M-1 and M-2 are two measures of the mone

Question 19

What distinguishes a credit union from all other financial institutions?

Accepted Answer

A credit union provides financ

Question 20

Which of the following is NOT a type of electronic funds transfer system?

Accepted Answer

A)  demand deposits 
B)  automated teller machines 
C)  automatic payroll deposits 
D)  electronic bill payments 
A)  demand deposits 
B)  automated teller machines 
C)  automatic payroll deposits 
D)  electronic bill payments

What is the difference between a credit card and a debit card?

How do banks "create" money?

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

A(n)________ is a financial institution accepting deposits that it uses to make loans and earn profits.

Banks are subject to prosecution when they fail to maintain systems for identifying and reporting suspicious activities.

What is the difference between a public pension fund and a private pension fund?

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

Which of the following will result in a decrease in the money supply?

In mutual savings banks,all depositors are considered owners of the bank.

The Federal Reserve System is the only federal agency that regulates banks.

All nationally chartered banks are members of the Federal Reserve System,as are some state-chartered banks.

The term ________ is another name for checking accounts.

How does e3bank use "the triple bottom line"?

An example of a point-of-sale (POS)terminal is when you go to the grocery store and the system transfers funds from your account to the store's account.

The M-1 money supply includes the most liquid forms of money.

Insurance companies accumulate money from premiums charged for coverage.What do they invest these funds in?

Which of the following is NOT a function of money?

What distinguishes a credit union from all other financial institutions?

Which of the following is NOT a type of electronic funds transfer system?

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

What is the difference between a credit card and a debit card?

How do banks "create" money?

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

A(n)________ is a financial institution accepting deposits that it uses to make loans and earn profits.

Banks are subject to prosecution when they fail to maintain systems for identifying and reporting suspicious activities.

What is the difference between a public pension fund and a private pension fund?

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

Which of the following will result in a decrease in the money supply?

In mutual savings banks,all depositors are considered owners of the bank.

The Federal Reserve System is the only federal agency that regulates banks.

All nationally chartered banks are members of the Federal Reserve System,as are some state-chartered banks.

The term ________ is another name for checking accounts.

How does e3bank use "the triple bottom line"?

An example of a point-of-sale (POS)terminal is when you go to the grocery store and the system transfers funds from your account to the store's account.

The M-1 money supply includes the most liquid forms of money.

Insurance companies accumulate money from premiums charged for coverage.What do they invest these funds in?

Which of the following is NOT a function of money?

What distinguishes a credit union from all other financial institutions?

Which of the following is NOT a type of electronic funds transfer system?

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