Exam 15: Money and Banking

A dollar can be exchanged for four quarters,thus demonstrating that it is ________.

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 does the Fed's monetary policy influence banks' willingness to loan money?

The annual amount of contributions allowed in an IRA from the employee's wages depend on the type of account.Which of the following is NOT a common type of IRA?

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. -Explain the three functions of the Federal Reserve.

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. -John soon realizes that money does not actually have to flow between two countries when payments are made for global transactions.Explain why.

The international payments process that moves money between buyers and sellers on different continents is subject to worldwide policy systems.

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

During 2009,the Fed decreased its investments in commercial banks.

As pointed out in the text,one of the three functions of money is its traditional use for wagering.

The ________ rate is the interest rate at which commercial banks lend reserves to each other,usually overnight.

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. -The Federal Reserve is mentioned in many of the proceedings.John is curious about the structure of the Federal Reserve System.Explain its structure.

What are the key characteristics of mutual savings banks?

The discount rate is the interest rate that the Fed charges when it loans money to a commercial bank.

________,which became federal law in 2004,allows a receiving bank to make an electronic image of a paper check and electronically send the image to the paying bank for instant payment.

David has a savings account and his home mortgage with a financial institution.In addition,he periodically receives a dividend check from it.He is invested with a ________.

The M-2 money supply includes everything that is in the M-1 money supply.

A ________ is a nondeposit financial institution that specializes in making loans to businesses and consumers.

What are the components of the M-2 money supply?

When buying from a Polish supplier,a ________ may be used.It is a promise by a bank to pay the Polish firm a certain amount at a future date.

Explain a smart card.