Exam 15: Money and Banking

According to the text,each business day,more than how much money exists in and among banks and other financial institutions in purely electronic form?

Consumers using debit cards instead of writing personal checks enjoy EFT's convenience and speed at the checkout.In addition,what else do EFT systems provide?

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. -What happens to demand and price during times of inflation?

List the purposes of the International Monetary Fund.

Why do buildings with higher LEED certification get lower-interest loans?

The ________ funds national improvements by making loans to build roads and hospitals.

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

List and describe the three functions of money.

Which of the following is NOT a part of the M-2 money supply?

The ________ rate is the interest rate at which member banks can borrow money from the Federal Reserve.

Many commercial banks offer trust services.What tasks do these trust services offer?

Which of the following is NOT a primary tool for controlling the money supply?

When savings and loan associations were created,what did they not offer?

________,the Fed's sale and purchase of securities,are particularly effective because they act quickly and predictably on the money supply.

Explain how financial institutions create money.

Any object can serve as money if it is portable,divisible,durable,and stable.

In some developing countries,the ________ has required that the government cut back on social programs and spending in order to bring inflation under control in return for funds.

A ________ is a nondeposit financial institution that buys and sells stocks and bonds both for investors and for its own accounts.

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 will John learn to define inflation?

Which of the following is NOT part of the M-1 supply?