Question 1

The major difference between banks and credit unions is that

Accepted Answer

A)  credit unions are owned and controlled by depositors. 
B)  banks distribute their profits to depositors. 
C)  credit unions make large loans to corporations. 
D)  bank depositors vote for the bank officers. 
E)  credit unions have higher default rates than banks. 
A)  credit unions are owned and controlled by depositors. 
B)  banks distribute their profits to depositors. 
C)  credit unions make large loans to corporations. 
D)  bank depositors vote for the bank officers. 
E)  credit unions have higher default rates than banks. A

Question 2

The oldest and largest of all financial institutions are

Accepted Answer

A)  commercial banks. 
B)  credit unions. 
C)  savings & loans. 
D)  insurance companies. 
E)  thrift institutions. 
A)  commercial banks. 
B)  credit unions. 
C)  savings & loans. 
D)  insurance companies. 
E)  thrift institutions. A

Question 3

How is technology making the banking industry change?

Accepted Answer

Rapid advances and innovations in technology are challenging the banking industry and causing it to adapt.Even smaller bank are now offering electronic access (home,smartphone banking).Online financial services,ATM technology,and bill presentation are just a few of the areas where rapidly changing technology is causing the banking industry to change.Students may offer further examples based on their own experiences with the financial system.

Question 4

Which of the following unprecedented actions did the Federal Reserve take during the most recent financial crisis?

Accepted Answer

A)  Firing all CEOS of bailed-out banks 
B)  Compensating all investors who lost money in the crisis 
C)  Further reducing regulation of the financial industry 
D)  Lending money at the discount window to nonbanking institutions like brokerage firms 
E)  Keeping interest rates high to help improve bank health 
A)  Firing all CEOS of bailed-out banks 
B)  Compensating all investors who lost money in the crisis 
C)  Further reducing regulation of the financial industry 
D)  Lending money at the discount window to nonbanking institutions like brokerage firms 
E)  Keeping interest rates high to help improve bank health

Question 5

What are the different types of checking accounts outlined in your text?

Accepted Answer

There are several types of checking acco

Question 6

An example of electronic funds transfers (EFT)is using an automated teller machine to withdraw cash.

Accepted Answer

A) True 
 B)False

Question 7

List the various types of U.S.financial institutions Dr.Hill might engage and describe the primary function of each.

Accepted Answer

The various types of U.S.financial insti

Question 8

What is a mutual fund?

Accepted Answer

A mutual fund is an investment vehicle t

Question 9

Money market funds are a form of mutual fund that

Accepted Answer

A)  invests in short-term debt securities issued by governments and corporations. 
B)  dispenses cash and allows balance inquiries. 
C)  buy and sell stocks,bonds,and other securities and provide other services. 
D)  is set aside by corporations to provide retirement income. 
E)  protects clients against financial losses from certain specified risks. 
A)  invests in short-term debt securities issued by governments and corporations. 
B)  dispenses cash and allows balance inquiries. 
C)  buy and sell stocks,bonds,and other securities and provide other services. 
D)  is set aside by corporations to provide retirement income. 
E)  protects clients against financial losses from certain specified risks.

Question 10

Finance companies

Accepted Answer

A)  typically function as the lender of last resort for individuals and businesses with poor credit ratings or whose other lines of credit have been exhausted. 
B)  offer lower interest rates than a bank and a lower rate of risk. 
C)  usually do not require collateral. 
D)  do not make loans to individuals. 
E)  are insured by the FDIC but at a lower rate than regular banks. 
A)  typically function as the lender of last resort for individuals and businesses with poor credit ratings or whose other lines of credit have been exhausted. 
B)  offer lower interest rates than a bank and a lower rate of risk. 
C)  usually do not require collateral. 
D)  do not make loans to individuals. 
E)  are insured by the FDIC but at a lower rate than regular banks.

Question 11

Which of the following is not a tool used by the Fed to implement its monetary policy?

Accepted Answer

A)  Open market operations 
B)  Reserve requirements 
C)  Credit controls 
D)  Discount rate 
E)  Individual savings accounts 
A)  Open market operations 
B)  Reserve requirements 
C)  Credit controls 
D)  Discount rate 
E)  Individual savings accounts

Question 12

Which of the following limited commercial banks from engaging in certain high-risk trading activities and raised the required capital they must hold on their balance sheets?

Accepted Answer

A)  Federal Deposit Insurance Act 
B)  Financial Services Modernization Act 
C)  Gramm-Leach-Bliley Act 
D)  Glass-Stegal Act 
E)  Dodd-Frank Act 
A)  Federal Deposit Insurance Act 
B)  Financial Services Modernization Act 
C)  Gramm-Leach-Bliley Act 
D)  Glass-Stegal Act 
E)  Dodd-Frank Act

Question 13

What services of each financial institution is Hill's new company likely to need?

Accepted Answer

From commercial banks,Hill would need sh

Question 14

If employees of a local school district conduct their financial business through the same financial institution that they own and only they are allowed to join,the institution is probably a(n)

Accepted Answer

A)  commercial bank. 
B)  credit union. 
C)  savings and loan association. 
D)  insurance company. 
E)  federal bank. 
A)  commercial bank. 
B)  credit union. 
C)  savings and loan association. 
D)  insurance company. 
E)  federal bank.

Question 15

Commercial banks offer a variety of services,particularly commercial loans and checking accounts.

Accepted Answer

A) True 
 B)False

Question 16

When a dollar bill is handled hundreds of times and is still being used,it has which of the following characteristics?

Accepted Answer

A)  Portability 
B)  Divisibility 
C)  Durability 
D)  Stability 
E)  Difficult to counterfeit 
A)  Portability 
B)  Divisibility 
C)  Durability 
D)  Stability 
E)  Difficult to counterfeit

Question 17

As a medium of exchange,money

Accepted Answer

A)  eliminates the cumbersome barter system. 
B)  creates a complicated service structure. 
C)  makes it harder to trade. 
D)  is hard to divide. 
E)  is backed by gold. 
A)  eliminates the cumbersome barter system. 
B)  creates a complicated service structure. 
C)  makes it harder to trade. 
D)  is hard to divide. 
E)  is backed by gold.

Question 18

Fiat money is backed by gold.

Accepted Answer

A) True 
 B)False

Question 19

Which was not a problem during the most recent financial crisis?

Accepted Answer

A)  Dramatic declines in bank assets 
B)  Collapse of the subprime mortgage market 
C)  Declining home values and foreclosures 
D)  Escalating home values 
E)  Excessively risky securities 
A)  Dramatic declines in bank assets 
B)  Collapse of the subprime mortgage market 
C)  Declining home values and foreclosures 
D)  Escalating home values 
E)  Excessively risky securities

Question 20

A nonbanking institution that buys and sells stocks and other securities for customers is a(n)

Accepted Answer

A)  money market fund. 
B)  pension fund. 
C)  insurance company. 
D)  brokerage firm. 
E)  automated clearinghouse. 
A)  money market fund. 
B)  pension fund. 
C)  insurance company. 
D)  brokerage firm. 
E)  automated clearinghouse.

The major difference between banks and credit unions is that

The oldest and largest of all financial institutions are

How is technology making the banking industry change?

Which of the following unprecedented actions did the Federal Reserve take during the most recent financial crisis?

What are the different types of checking accounts outlined in your text?

An example of electronic funds transfers (EFT)is using an automated teller machine to withdraw cash.

List the various types of U.S.financial institutions Dr.Hill might engage and describe the primary function of each.

What is a mutual fund?

Money market funds are a form of mutual fund that

Finance companies

Which of the following is not a tool used by the Fed to implement its monetary policy?

Which of the following limited commercial banks from engaging in certain high-risk trading activities and raised the required capital they must hold on their balance sheets?

What services of each financial institution is Hill's new company likely to need?

If employees of a local school district conduct their financial business through the same financial institution that they own and only they are allowed to join,the institution is probably a(n)

Commercial banks offer a variety of services,particularly commercial loans and checking accounts.

When a dollar bill is handled hundreds of times and is still being used,it has which of the following characteristics?

As a medium of exchange,money

Fiat money is backed by gold.

Which was not a problem during the most recent financial crisis?

A nonbanking institution that buys and sells stocks and other securities for customers is a(n)

The Dynamics of Business and Economics

Business Ethics and Social Responsibility

Business in a Borderless World

Options for Organizing Business

Small Business, entrepreneurship, and Franchising

The Nature of Management

Organization, teamwork, and Communication

Managing Service and Manufacturing Operations

Motivating the Workforce

Managing Human Resources

Customer-Driven Marketing

Dimensions of Marketing Strategy

Digital Marketing and Social Networking

Accounting and Financial Statements

Financial Management and Securities Markets

Filters

Exam 15: Money and the Financial System

The major difference between banks and credit unions is that

The oldest and largest of all financial institutions are

How is technology making the banking industry change?

Which of the following unprecedented actions did the Federal Reserve take during the most recent financial crisis?

What are the different types of checking accounts outlined in your text?

An example of electronic funds transfers (EFT)is using an automated teller machine to withdraw cash.

List the various types of U.S.financial institutions Dr.Hill might engage and describe the primary function of each.

What is a mutual fund?

Money market funds are a form of mutual fund that

Finance companies

Which of the following is not a tool used by the Fed to implement its monetary policy?

Which of the following limited commercial banks from engaging in certain high-risk trading activities and raised the required capital they must hold on their balance sheets?

What services of each financial institution is Hill's new company likely to need?

If employees of a local school district conduct their financial business through the same financial institution that they own and only they are allowed to join,the institution is probably a(n)

Commercial banks offer a variety of services,particularly commercial loans and checking accounts.

When a dollar bill is handled hundreds of times and is still being used,it has which of the following characteristics?

As a medium of exchange,money

Fiat money is backed by gold.

Which was not a problem during the most recent financial crisis?

A nonbanking institution that buys and sells stocks and other securities for customers is a(n)

The Dynamics of Business and Economics

Business Ethics and Social Responsibility

Business in a Borderless World

Options for Organizing Business

Small Business, entrepreneurship, and Franchising

The Nature of Management

Organization, teamwork, and Communication

Managing Service and Manufacturing Operations

Motivating the Workforce

Managing Human Resources

Customer-Driven Marketing

Dimensions of Marketing Strategy

Digital Marketing and Social Networking

Accounting and Financial Statements

Financial Management and Securities Markets

Filters