Question 1

What are the three functions of money?

Accepted Answer

Money has three central functions.The fi

Question 2

What issue is holding Dr.Hill back from developing his product into a business?

Accepted Answer

A)  He does not have the capital 
B)  He does not want to start a business 
C)  He would rather have a partner do the work 
D)  He does not know enough about finance 
E)  He doesn't have time to be a doctor and an entrepreneur 
A)  He does not have the capital 
B)  He does not want to start a business 
C)  He would rather have a partner do the work 
D)  He does not know enough about finance 
E)  He doesn't have time to be a doctor and an entrepreneur

Question 3

Funds in a demand deposit account cannot be withdrawn without a 24-hour notice.

Accepted Answer

A) True 
 B)False

Question 4

Behind all forms of "near money" stands

Accepted Answer

A)  government gold reserves. 
B)  colored rocks. 
C)  merchants' reluctance to accept them. 
D)  people's faith in their resistance to counterfeiting. 
E)  people's faith in their ability to exchange them for currency. 
A)  government gold reserves. 
B)  colored rocks. 
C)  merchants' reluctance to accept them. 
D)  people's faith in their resistance to counterfeiting. 
E)  people's faith in their ability to exchange them for currency.

Question 5

To carry out its function of controlling the supply of money,the Federal Reserve Board

Accepted Answer

A)  uses financial policy. 
B)  uses monetary policy. 
C)  prints money. 
D)  taxes issues. 
E)  destroys old money. 
A)  uses financial policy. 
B)  uses monetary policy. 
C)  prints money. 
D)  taxes issues. 
E)  destroys old money.

Question 6

During the financial crisis,many large banks saw their capital base grow.

Accepted Answer

A) True 
 B)False

Question 7

A credit union is owned and controlled by a larger bank.

Accepted Answer

A) True 
 B)False

Question 8

A check

Accepted Answer

A)  is riskier than cash for paying bills but is usually considered more efficient. 
B)  is a demand deposit. 
C)  may be written off a certificate of deposit. 
D)  may earn interest but not as much as a savings account. 
E)  is a written order to a bank to pay the indicated party the amount specified on the check from money on deposit. 
A)  is riskier than cash for paying bills but is usually considered more efficient. 
B)  is a demand deposit. 
C)  may be written off a certificate of deposit. 
D)  may earn interest but not as much as a savings account. 
E)  is a written order to a bank to pay the indicated party the amount specified on the check from money on deposit.

Question 9

Another name for a checking account is a

Accepted Answer

A)  demand deposit. 
B)  money market account. 
C)  time deposit. 
D)  mutual fund. 
E)  share account. 
A)  demand deposit. 
B)  money market account. 
C)  time deposit. 
D)  mutual fund. 
E)  share account.

Question 10

Another name for a savings account is a(n)

Accepted Answer

A)  interest deposit. 
B)  term deposit. 
C)  demand deposit. 
D)  time deposit. 
E)  certificate of deposit. 
A)  interest deposit. 
B)  term deposit. 
C)  demand deposit. 
D)  time deposit. 
E)  certificate of deposit.

Question 11

A savings account is the same thing as a money market account.

Accepted Answer

A) True 
 B)False

Question 12

When the Fed buys securities,it decreases the money in circulation.

Accepted Answer

A) True 
 B)False

Question 13

The Federal Reserve provides national check processing.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following actions did the Federal Reserve not take during the most recent financial crisis to stave off economic collapse?

Accepted Answer

A)  Paid interest on reserves banks kept at the Fed 
B)  Lowered key interest rates 
C)  Allowed most of the largest banks to fail 
D)  Purchased troubled assets from banks 
E)  Lent money at discount rates to nonbanking institutions 
A)  Paid interest on reserves banks kept at the Fed 
B)  Lowered key interest rates 
C)  Allowed most of the largest banks to fail 
D)  Purchased troubled assets from banks 
E)  Lent money at discount rates to nonbanking institutions

Question 15

In some countries with very high inflation rates,citizens must spend their money as fast as they receive it in order to keep up with or stay ahead of the rapidly rising prices of consumer goods.Under these conditions,money is said to lack

Accepted Answer

A)  portability. 
B)  divisibility. 
C)  durability. 
D)  stability. 
E)  difficulty to counterfeit. 
A)  portability. 
B)  divisibility. 
C)  durability. 
D)  stability. 
E)  difficulty to counterfeit.

Question 16

Which of the following permit deposits and withdrawals to be made directly to a bank account through the use of magnetic tape?

Accepted Answer

A)  Brokerage firms 
B)  Investment banks 
C)  Online banking 
D)  Automatic teller machines 
E)  Automated clearinghouses 
A)  Brokerage firms 
B)  Investment banks 
C)  Online banking 
D)  Automatic teller machines 
E)  Automated clearinghouses

Question 17

The Federal Reserve provides all of the following services except

Accepted Answer

A)  using monetary policy to control the money supply. 
B)  regulating financial institutions. 
C)  managing regional and national check clearing. 
D)  managing the deposit insurance of banks in the Federal Reserve System. 
E)  offering certificates of deposit for interested individuals. 
A)  using monetary policy to control the money supply. 
B)  regulating financial institutions. 
C)  managing regional and national check clearing. 
D)  managing the deposit insurance of banks in the Federal Reserve System. 
E)  offering certificates of deposit for interested individuals.

Question 18

Mutual funds spread the risk of investing across many securities.

Accepted Answer

A) True 
 B)False

Question 19

What is the product Dr.Hill has developed?

Accepted Answer

A)  A highly scratch-resistant and light-weight lens 
B)  A high-tech toothbrush 
C)  A vacuum cleaner 
D)  A new computer game 
E)  An automated check-in system for waiting rooms 
A)  A highly scratch-resistant and light-weight lens 
B)  A high-tech toothbrush 
C)  A vacuum cleaner 
D)  A new computer game 
E)  An automated check-in system for waiting rooms

Question 20

The Federal Reserve System is responsible for

Accepted Answer

A)  apprehending counterfeiters. 
B)  creating a stable environment for economic growth. 
C)  insuring savings accounts. 
D)  encouraging foreign trade. 
E)  eliminating unemployment. 
A)  apprehending counterfeiters. 
B)  creating a stable environment for economic growth. 
C)  insuring savings accounts. 
D)  encouraging foreign trade. 
E)  eliminating unemployment.

What are the three functions of money?

What issue is holding Dr.Hill back from developing his product into a business?

Funds in a demand deposit account cannot be withdrawn without a 24-hour notice.

Behind all forms of "near money" stands

To carry out its function of controlling the supply of money,the Federal Reserve Board

During the financial crisis,many large banks saw their capital base grow.

A credit union is owned and controlled by a larger bank.

A check

Another name for a checking account is a

Another name for a savings account is a(n)

A savings account is the same thing as a money market account.

When the Fed buys securities,it decreases the money in circulation.

The Federal Reserve provides national check processing.

Which of the following actions did the Federal Reserve not take during the most recent financial crisis to stave off economic collapse?

In some countries with very high inflation rates,citizens must spend their money as fast as they receive it in order to keep up with or stay ahead of the rapidly rising prices of consumer goods.Under these conditions,money is said to lack

Which of the following permit deposits and withdrawals to be made directly to a bank account through the use of magnetic tape?

The Federal Reserve provides all of the following services except

Mutual funds spread the risk of investing across many securities.

What is the product Dr.Hill has developed?

The Federal Reserve System is responsible for

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

What are the three functions of money?

What issue is holding Dr.Hill back from developing his product into a business?

Funds in a demand deposit account cannot be withdrawn without a 24-hour notice.

Behind all forms of "near money" stands

To carry out its function of controlling the supply of money,the Federal Reserve Board

During the financial crisis,many large banks saw their capital base grow.

A credit union is owned and controlled by a larger bank.

A check

Another name for a checking account is a

Another name for a savings account is a(n)

A savings account is the same thing as a money market account.

When the Fed buys securities,it decreases the money in circulation.

The Federal Reserve provides national check processing.

Which of the following actions did the Federal Reserve not take during the most recent financial crisis to stave off economic collapse?

In some countries with very high inflation rates,citizens must spend their money as fast as they receive it in order to keep up with or stay ahead of the rapidly rising prices of consumer goods.Under these conditions,money is said to lack

Which of the following permit deposits and withdrawals to be made directly to a bank account through the use of magnetic tape?

The Federal Reserve provides all of the following services except

Mutual funds spread the risk of investing across many securities.

What is the product Dr.Hill has developed?

The Federal Reserve System is responsible for

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