Question 1

Savings and loan associations have traditionally specialized in savings accounts and home mortgages.

Accepted Answer

A) True 
 B)False

Question 2

A checking account is also called a demand deposit account.

Accepted Answer

A) True 
 B)False

Question 3

The financial institution that traditionally concentrated on long-term loans,such as mortgages,and is sometimes called a thrift,is a(n)

Accepted Answer

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

Question 4

Money market accounts differ from interest-bearing checking accounts in that

Accepted Answer

A)  owners can write only a limited number of checks,and there may be a minimum amount allowed for each check. 
B)  owners can take out their funds whenever they want in whatever amount they want. 
C)  owners cannot withdraw the funds before the end of a specified interval. 
D)  owners cannot convert them into cash. 
E)  owners cannot withdraw the funds without advance notice. 
A)  owners can write only a limited number of checks,and there may be a minimum amount allowed for each check. 
B)  owners can take out their funds whenever they want in whatever amount they want. 
C)  owners cannot withdraw the funds before the end of a specified interval. 
D)  owners cannot convert them into cash. 
E)  owners cannot withdraw the funds without advance notice.

Question 5

Because the U.S.government promises that its metallic coins and paper money are legally acceptable as a means of exchange for products,they are considered which type of money?

Accepted Answer

A)  Far 
B)  Credit 
C)  Near 
D)  Illegitimate 
E)  Fiat 
A)  Far 
B)  Credit 
C)  Near 
D)  Illegitimate 
E)  Fiat

Question 6

The Federal Reserve System was established by Congress in 1913 to

Accepted Answer

A)  regulate the banking industry. 
B)  allow huge swings in the economy. 
C)  depend on Congress politically. 
D)  reduce the money supply. 
E)  increase the money supply. 
A)  regulate the banking industry. 
B)  allow huge swings in the economy. 
C)  depend on Congress politically. 
D)  reduce the money supply. 
E)  increase the money supply.

Question 7

Certificates of deposit are accounts with funds that usually cannot be withdrawn without advance notice and/or have limits on the number of withdrawals per period.

Accepted Answer

A) True 
 B)False

Question 8

The three important functions of money are that it serves as a medium of exchange,a measure of value,and a store of value.

Accepted Answer

A) True 
 B)False

Question 9

The primary business of savings and loan associations has been

Accepted Answer

A)  making loans to large corporations. 
B)  savings accounts and mortgages. 
C)  loans to foreign governments. 
D)  insuring deposits. 
E)  selling life insurance. 
A)  making loans to large corporations. 
B)  savings accounts and mortgages. 
C)  loans to foreign governments. 
D)  insuring deposits. 
E)  selling life insurance.

Question 10

Mutual savings banks are similar to savings and loan associations except that they are owned by their depositors.

Accepted Answer

A) True 
 B)False

Question 11

If consumers do not pay off their entire credit card balance,they will

Accepted Answer

A)  have to pay interest on the total paid and unpaid amount. 
B)  receive interest on the paid amount. 
C)  have to pay interest on the unpaid amount. 
D)  get a rebate from the card issuer. 
E)  have the purchased goods repossessed. 
A)  have to pay interest on the total paid and unpaid amount. 
B)  receive interest on the paid amount. 
C)  have to pay interest on the unpaid amount. 
D)  get a rebate from the card issuer. 
E)  have the purchased goods repossessed.

Question 12

Credit cards have become quite popular as a substitute for money.Why?

Accepted Answer

Credit cards have become a pop

Question 13

Money is a medium of exchange.

Accepted Answer

A) True 
 B)False

Question 14

Under the Troubled Asset Relief Program (TARP),most of the big banks in the U.S.either needed a cash infusion from the U.S.Treasury or were forced to sell preferred stock to the Treasury in order to stay in business.

Accepted Answer

A) True 
 B)False

Question 15

The Federal Reserve Board regulates U.S.financial institutions.

Accepted Answer

A) True 
 B)False

Savings and loan associations have traditionally specialized in savings accounts and home mortgages.

A checking account is also called a demand deposit account.

The financial institution that traditionally concentrated on long-term loans,such as mortgages,and is sometimes called a thrift,is a(n)

Money market accounts differ from interest-bearing checking accounts in that

Because the U.S.government promises that its metallic coins and paper money are legally acceptable as a means of exchange for products,they are considered which type of money?

The Federal Reserve System was established by Congress in 1913 to

Certificates of deposit are accounts with funds that usually cannot be withdrawn without advance notice and/or have limits on the number of withdrawals per period.

The three important functions of money are that it serves as a medium of exchange,a measure of value,and a store of value.

The primary business of savings and loan associations has been

Mutual savings banks are similar to savings and loan associations except that they are owned by their depositors.

If consumers do not pay off their entire credit card balance,they will

Credit cards have become quite popular as a substitute for money.Why?

Money is a medium of exchange.

Under the Troubled Asset Relief Program (TARP),most of the big banks in the U.S.either needed a cash infusion from the U.S.Treasury or were forced to sell preferred stock to the Treasury in order to stay in business.

The Federal Reserve Board regulates U.S.financial institutions.

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

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Exam 15: Money and the Financial System

Savings and loan associations have traditionally specialized in savings accounts and home mortgages.

A checking account is also called a demand deposit account.

The financial institution that traditionally concentrated on long-term loans,such as mortgages,and is sometimes called a thrift,is a(n)

Money market accounts differ from interest-bearing checking accounts in that

Because the U.S.government promises that its metallic coins and paper money are legally acceptable as a means of exchange for products,they are considered which type of money?

The Federal Reserve System was established by Congress in 1913 to

Certificates of deposit are accounts with funds that usually cannot be withdrawn without advance notice and/or have limits on the number of withdrawals per period.

The three important functions of money are that it serves as a medium of exchange,a measure of value,and a store of value.

The primary business of savings and loan associations has been

Mutual savings banks are similar to savings and loan associations except that they are owned by their depositors.

If consumers do not pay off their entire credit card balance,they will

Credit cards have become quite popular as a substitute for money.Why?

Money is a medium of exchange.

Under the Troubled Asset Relief Program (TARP),most of the big banks in the U.S.either needed a cash infusion from the U.S.Treasury or were forced to sell preferred stock to the Treasury in order to stay in business.

The Federal Reserve Board regulates U.S.financial institutions.

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