Question 1

Which of the following is not a type of pension fund?

Accepted Answer

A)  Individual retirement accounts 
B)  Corporate insurance plans for employees 
C)  Insurance company life insurance plans 
D)  Social Security 
E)  Roth individual retirement accounts 
A)  Individual retirement accounts 
B)  Corporate insurance plans for employees 
C)  Insurance company life insurance plans 
D)  Social Security 
E)  Roth individual retirement accounts

Question 2

Most experts believe that banks will continue to consolidate and get larger over time.

Accepted Answer

A) True 
 B)False

Question 3

When the Fed increases the reserve requirement,it

Accepted Answer

A)  decreases the money supply. 
B)  increases the money supply. 
C)  increases the amount of insurance for accounts. 
D)  clears all of the checks in the system immediately. 
E)  reduces the percentage of deposits that banks must hold in reserve. 
A)  decreases the money supply. 
B)  increases the money supply. 
C)  increases the amount of insurance for accounts. 
D)  clears all of the checks in the system immediately. 
E)  reduces the percentage of deposits that banks must hold in reserve.

Question 4

A mutual fund allows many small investors to

Accepted Answer

A)  buy stocks individually. 
B)  invest in a diversified stock market portfolio. 
C)  take no risk while investing in stocks. 
D)  make loans. 
E)  float commercial paper. 
A)  buy stocks individually. 
B)  invest in a diversified stock market portfolio. 
C)  take no risk while investing in stocks. 
D)  make loans. 
E)  float commercial paper.

Question 5

With regard to financial institutions,what is a shrinking capital base?

Accepted Answer

A)  When an institution's credit rating is downgraded 
B)  When the institution gives out a lot of large loans 
C)  When the institution experiences a large influx of new equity 
D)  When an institution's amount of debt in relation to equity increases 
E)  When the institution loses a large quantity of its customers in a short amount of time 
A)  When an institution's credit rating is downgraded 
B)  When the institution gives out a lot of large loans 
C)  When the institution experiences a large influx of new equity 
D)  When an institution's amount of debt in relation to equity increases 
E)  When the institution loses a large quantity of its customers in a short amount of time

Question 6

Credit cards are

Accepted Answer

A)  difficult to use. 
B)  preapproved lines of credit granted by a bank or finance company. 
C)  demand deposits. 
D)  time deposits. 
E)  money stored in a bank or other financial institution that can be withdrawn without advance notice. 
A)  difficult to use. 
B)  preapproved lines of credit granted by a bank or finance company. 
C)  demand deposits. 
D)  time deposits. 
E)  money stored in a bank or other financial institution that can be withdrawn without advance notice.

Question 7

When currency is stable,it provides no incentive to save.

Accepted Answer

A) True 
 B)False

Question 8

What is one of the things that the Troubled Asset Relief Program (TARP)allowed the government to do to help financial institutions?

Accepted Answer

A)  Offer guidance on how to make better financial decisions 
B)  Buy up hundreds of millions of dollars of preferred shares of banking securities 
C)  Totally forgive the debt at troubled banks 
D)  Send depositors checks to cover their lost investments 
E)  Establish a central government bank to replace all failed banks 
A)  Offer guidance on how to make better financial decisions 
B)  Buy up hundreds of millions of dollars of preferred shares of banking securities 
C)  Totally forgive the debt at troubled banks 
D)  Send depositors checks to cover their lost investments 
E)  Establish a central government bank to replace all failed banks

Question 9

If a person invests in the stock market through a firm that pools funds from a large number of people and buys and professionally manages stock from a number of diversified companies,that person is investing in a(n)

Accepted Answer

A)  certificate of deposit. 
B)  individual retirement account. 
C)  mutual fund. 
D)  banker's acceptance. 
E)  time deposit. 
A)  certificate of deposit. 
B)  individual retirement account. 
C)  mutual fund. 
D)  banker's acceptance. 
E)  time deposit.

Question 10

Rapid advances and technological innovations are requiring the banking industry to change.

Accepted Answer

A) True 
 B)False

Question 11

The primary advantage of using money instead of bartering is that money is more

Accepted Answer

A)  easily divided into small units. 
B)  easily carried around. 
C)  stable. 
D)  easily accepted. 
E)  easily counterfeited. 
A)  easily divided into small units. 
B)  easily carried around. 
C)  stable. 
D)  easily accepted. 
E)  easily counterfeited.

Question 12

What are the different nonbanking institutions available? What do they not offer that banking institutions do?

Accepted Answer

Nonbank financial institutions offer som

Question 13

When inflation is very high,money is no longer a ______ means of exchange.

Accepted Answer

A)  stable 
B)  portable 
C)  durable 
D)  divisible 
E)  difficult to counterfeit 
A)  stable 
B)  portable 
C)  durable 
D)  divisible 
E)  difficult to counterfeit

Question 14

The most important characteristic of money is its acceptability for purchase of goods and services.

Accepted Answer

A) True 
 B)False

Question 15

The acronym NOW,when used in financial circles,stands for ___________ and is a type of interest-bearing checking account.

Accepted Answer

A)  near order withdrawal 
B)  negotiable order of wicking 
C)  near order of wicking 
D)  negotiable order of withdrawal 
E)  negative order of withdrawal 
A)  near order withdrawal 
B)  negotiable order of wicking 
C)  near order of wicking 
D)  negotiable order of withdrawal 
E)  negative order of withdrawal

Question 16

Money has all the following characteristics except

Accepted Answer

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

Question 17

Advantages of direct deposits of paychecks and other income to consumers include convenience,safety,and potential interest earnings.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following is similar to a savings and loan association except that it is owned by its depositors?

Accepted Answer

A)  Commercial bank 
B)  Thrift institution 
C)  Mutual savings bank 
D)  Federal bank 
E)  Finance company 
A)  Commercial bank 
B)  Thrift institution 
C)  Mutual savings bank 
D)  Federal bank 
E)  Finance company

Question 19

When the Federal Reserve sells investments,it

Accepted Answer

A)  decreases the money supply. 
B)  increases the money supply. 
C)  increases the amount of insurance for accounts. 
D)  clears all checks in the system immediately. 
E)  maintains the money supply. 
A)  decreases the money supply. 
B)  increases the money supply. 
C)  increases the amount of insurance for accounts. 
D)  clears all checks in the system immediately. 
E)  maintains the money supply.

Question 20

The Federal Reserve Board is responsible for supervising the insurance funds that protect deposits in member institutions,such as FDIC insured banks.

Accepted Answer

A) True 
 B)False

Which of the following is not a type of pension fund?

Most experts believe that banks will continue to consolidate and get larger over time.

When the Fed increases the reserve requirement,it

A mutual fund allows many small investors to

With regard to financial institutions,what is a shrinking capital base?

Credit cards are

When currency is stable,it provides no incentive to save.

What is one of the things that the Troubled Asset Relief Program (TARP)allowed the government to do to help financial institutions?

If a person invests in the stock market through a firm that pools funds from a large number of people and buys and professionally manages stock from a number of diversified companies,that person is investing in a(n)

Rapid advances and technological innovations are requiring the banking industry to change.

The primary advantage of using money instead of bartering is that money is more

What are the different nonbanking institutions available? What do they not offer that banking institutions do?

When inflation is very high,money is no longer a ______ means of exchange.

The most important characteristic of money is its acceptability for purchase of goods and services.

The acronym NOW,when used in financial circles,stands for ___________ and is a type of interest-bearing checking account.

Money has all the following characteristics except

Advantages of direct deposits of paychecks and other income to consumers include convenience,safety,and potential interest earnings.

Which of the following is similar to a savings and loan association except that it is owned by its depositors?

When the Federal Reserve sells investments,it

The Federal Reserve Board is responsible for supervising the insurance funds that protect deposits in member institutions,such as FDIC insured banks.

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

Which of the following is not a type of pension fund?

Most experts believe that banks will continue to consolidate and get larger over time.

When the Fed increases the reserve requirement,it

A mutual fund allows many small investors to

With regard to financial institutions,what is a shrinking capital base?

Credit cards are

When currency is stable,it provides no incentive to save.

What is one of the things that the Troubled Asset Relief Program (TARP)allowed the government to do to help financial institutions?

If a person invests in the stock market through a firm that pools funds from a large number of people and buys and professionally manages stock from a number of diversified companies,that person is investing in a(n)

Rapid advances and technological innovations are requiring the banking industry to change.

The primary advantage of using money instead of bartering is that money is more

What are the different nonbanking institutions available? What do they not offer that banking institutions do?

When inflation is very high,money is no longer a ______ means of exchange.

The most important characteristic of money is its acceptability for purchase of goods and services.

The acronym NOW,when used in financial circles,stands for ___________ and is a type of interest-bearing checking account.

Money has all the following characteristics except

Advantages of direct deposits of paychecks and other income to consumers include convenience,safety,and potential interest earnings.

Which of the following is similar to a savings and loan association except that it is owned by its depositors?

When the Federal Reserve sells investments,it

The Federal Reserve Board is responsible for supervising the insurance funds that protect deposits in member institutions,such as FDIC insured banks.

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