Question 1

The International Monetary Fund seeks to promote stable exchange rates.

Accepted Answer

A) True 
 B)False

Question 2

The ACH system is governed by ________.

Accepted Answer

A)  NACHA 
B)  the Federal Reserve 
C)  SEC 
D)  FDIC 
A)  NACHA 
B)  the Federal Reserve 
C)  SEC 
D)  FDIC

Question 3

An example of blink technology is when you go to the grocery store and instead of writing a check or swiping your debit card or using a credit card,you "flash" or wave a card in front of the cashier.

Accepted Answer

A) True 
 B)False

Question 4

What are the components of the M-1 money supply?

Accepted Answer

The M-1 money supply

Question 5

Which of the following is NOT a major type of financial institution?

Accepted Answer

A)  investment clubs 
B)  credit unions 
C)  commercial banks 
D)  savings and loan associations 
A)  investment clubs 
B)  credit unions 
C)  commercial banks 
D)  savings and loan associations

Question 6

Which of the following tools of the Fed likely acts most quickly and predictably on the money supply?

Accepted Answer

A)  discount rate 
B)  reserve requirement 
C)  open-market operations 
D)  selective credit controls 
A)  discount rate 
B)  reserve requirement 
C)  open-market operations 
D)  selective credit controls

Question 7

The customer identification program (CIP)implemented by the USA Patriot Act requires banks to

Accepted Answer

A)  verify identities 
B)  keep records of customer activities 
C)  compare identities of new customers with government terrorist lists 
D)  all of the above 
A)  verify identities 
B)  keep records of customer activities 
C)  compare identities of new customers with government terrorist lists 
D)  all of the above

Question 8

A money market mutual fund is composed of long-term bonds and stocks.

Accepted Answer

A) True 
 B)False

Question 9

A(n)________ is an electronic machine that allows customers to conduct accounting related activities 24 hours a day,seven days a week.

Accepted Answer

A)  IRA 
B)  ATM 
C)  ETF 
D)  FDIC 
A)  IRA 
B)  ATM 
C)  ETF 
D)  FDIC

Question 10

A commercial loan set at prime + 1 means that ________.

Accepted Answer

A)  the interest rate is the prime rate 
B)  the interest rate is flexible 
C)  the interest rate will be determined in one month 
D)  the interest rate is 1% over the prime rate 
A)  the interest rate is the prime rate 
B)  the interest rate is flexible 
C)  the interest rate will be determined in one month 
D)  the interest rate is 1% over the prime rate

Question 11

Money frees society from a system of barter.In doing so,money is performing which of the following functions?

Accepted Answer

A)  store of value 
B)  unit of account 
C)  determination factor 
D)  medium of exchange 
A)  store of value 
B)  unit of account 
C)  determination factor 
D)  medium of exchange

Question 12

According to the text,which of the following is a characteristic of money?

Accepted Answer

A)  spendable 
B)  portable 
C)  artistically respectable 
D)  loanable 
A)  spendable 
B)  portable 
C)  artistically respectable 
D)  loanable

Question 13

What is a debit card?

Accepted Answer

Debit cards allow only the tra

Question 14

Which of the following is NOT a nondeposit financial institution?

Accepted Answer

A)  credit unions 
B)  pension funds 
C)  insurance companies 
D)  finance companies 
A)  credit unions 
B)  pension funds 
C)  insurance companies 
D)  finance companies

Question 15

John tells people that he is an owner of his own bank.His financial institution is most likely a ________.

Accepted Answer

A)  credit union 
B)  commercial bank 
C)  savings and loan association 
D)  finance company 
A)  credit union 
B)  commercial bank 
C)  savings and loan association 
D)  finance company

Question 16

At ________,deposits are only accepted from members who meet specific qualifications,usually working for a specific employer.

Accepted Answer

A)  mutual savings banks 
B)  savings and loan associations 
C)  commercial banks 
D)  credit unions 
A)  mutual savings banks 
B)  savings and loan associations 
C)  commercial banks 
D)  credit unions

Question 17

________ refers to the Fed's buying and selling of securities,usually U.S.Treasury notes and bonds.

Accepted Answer

A)  Printing/destroying currency 
B)  Discount rate control 
C)  Selective credit control 
D)  Open-market operations 
A)  Printing/destroying currency 
B)  Discount rate control 
C)  Selective credit control 
D)  Open-market operations

Question 18

How does an increased discount rate reduce money supply?

Accepted Answer

An increased discount rate mak

Question 19

If the Fed wants to reduce the money supply,

Accepted Answer

A)  it increases the discount rate. 
B)  it decreases the discount rate. 
C)  both A and B 
D)  none of the above 
A)  it increases the discount rate. 
B)  it decreases the discount rate. 
C)  both A and B 
D)  none of the above

Question 20

Which of the following best describes the divisibility 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.

The International Monetary Fund seeks to promote stable exchange rates.

The ACH system is governed by ________.

An example of blink technology is when you go to the grocery store and instead of writing a check or swiping your debit card or using a credit card,you "flash" or wave a card in front of the cashier.

What are the components of the M-1 money supply?

Which of the following is NOT a major type of financial institution?

Which of the following tools of the Fed likely acts most quickly and predictably on the money supply?

The customer identification program (CIP)implemented by the USA Patriot Act requires banks to

A money market mutual fund is composed of long-term bonds and stocks.

A(n)________ is an electronic machine that allows customers to conduct accounting related activities 24 hours a day,seven days a week.

A commercial loan set at prime + 1 means that ________.

Money frees society from a system of barter.In doing so,money is performing which of the following functions?

According to the text,which of the following is a characteristic of money?

What is a debit card?

Which of the following is NOT a nondeposit financial institution?

John tells people that he is an owner of his own bank.His financial institution is most likely a ________.

At ________,deposits are only accepted from members who meet specific qualifications,usually working for a specific employer.

________ refers to the Fed's buying and selling of securities,usually U.S.Treasury notes and bonds.

How does an increased discount rate reduce money supply?

If the Fed wants to reduce the money supply,

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

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

The International Monetary Fund seeks to promote stable exchange rates.

The ACH system is governed by ________.

An example of blink technology is when you go to the grocery store and instead of writing a check or swiping your debit card or using a credit card,you "flash" or wave a card in front of the cashier.

What are the components of the M-1 money supply?

Which of the following is NOT a major type of financial institution?

Which of the following tools of the Fed likely acts most quickly and predictably on the money supply?

The customer identification program (CIP)implemented by the USA Patriot Act requires banks to

A money market mutual fund is composed of long-term bonds and stocks.

A(n)________ is an electronic machine that allows customers to conduct accounting related activities 24 hours a day,seven days a week.

A commercial loan set at prime + 1 means that ________.

Money frees society from a system of barter.In doing so,money is performing which of the following functions?

According to the text,which of the following is a characteristic of money?

What is a debit card?

Which of the following is NOT a nondeposit financial institution?

John tells people that he is an owner of his own bank.His financial institution is most likely a ________.

At ________,deposits are only accepted from members who meet specific qualifications,usually working for a specific employer.

________ refers to the Fed's buying and selling of securities,usually U.S.Treasury notes and bonds.

How does an increased discount rate reduce money supply?

If the Fed wants to reduce the money supply,

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

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