Question 1

A time deposit that earns interest is a _______________.

Accepted Answer

A)  certificate of deposit
B)  passbook account
C)  discount deposit
D)  NOW accountE) A) and B)
F) A) and C)

Question 2

For banks,the check processing activities:

Accepted Answer

A)  still represent the cheapest way to permit customers use of their funds.
B)  are expensive and time consuming.
C)  are not trustworthy and reliable.
D)  are extremely efficient and have deterred customers from using other ways to access their funds.E) C) and D)
F) A) and C)

Question 3

When Mr.Smith in Quince Orchard,MD uses a check to buy a tractor from Mr.Brown in Austin,TX,__________ different banks are involved in the transaction.

Accepted Answer

A)  4
B)  12
C)  15
D)  noE) C) and D)
F) B) and D)

Question 4

The International Monetary Fund does not lend money.

Accepted Answer

A) True 
 B)False

Question 5

Banks prefer that customers use an electronic funds transfer system rather than traditional methods of payment because:

Accepted Answer

A)  traditional payments are subject to regulation by the Fed and electronic transactions are not.
B)  electronic funds are subject to a smaller reserve requirement than traditional funds.
C)  electronic funds transfer is more efficient and less expensive for banks than traditional check-based payments.
D)  the bank generates advertising revenue from its website.E) A) and D)
F) None of the above

Question 6

As is common payroll procedure for most employers,Marissa's company _____________ her paycheck bi-monthly into her checking account.This is a paperless process and no check is issued to the employee.By logging into her personnel system,Marissa has record of the net pay that was deposited into her personal checking account and an account of how much was taken out for taxes,Medicare,social security FICA) and other deductions.Marissa's company has adopted an efficient _________ system.

Accepted Answer

A)  debits;enterprise funds transfer
B)  debits;electronic funds transfer
C)  direct deposits;electronic funds transfer
D)  markets;smart cardE) A) and B)
F) B) and C)

Question 7

Credit unions are for-profit cooperatives.

Accepted Answer

A) True 
 B)False

Question 8

A significant decrease in the money supply tends to:

Accepted Answer

A)  reduce the supply of gold held by the federal government.
B)  create shortages that would cause prices of goods and services to rise.
C)  send the economy into a recession.
D)  reduce the size of the federal government's deficit.E) B) and C)
F) A) and D)

Question 9

The Spotlight on Small Business box tells a story about a relatively new business in Austin,TX,called the Mango Store.Customers can cash paychecks and utilize a number of electronic methods such as debit cards and ATM machines to manage their funds.The popularity of this business is due to an ongoing need.Which of the following describes the situation?

Accepted Answer

A)  At least ¼ of American households do not have bank accounts.
B)  The growing uncertainty of bank regulations and their ability to insure the safety of deposits.
C)  Banks continually expect Americans to check bank balances via computers.For those who do not own computers,there is a need for a service to check bank balances.
D)  ATMs are so heavily in demand,and there are not enough companies who service them for banks.E) A) and B)
F) None of the above

Question 10

A direct payment is a pre-authorized electronic payment.

Accepted Answer

A) True 
 B)False

Question 11

The reserve requirement represents the interest rate charged by the Federal Reserve for government guaranteed student loans.

Accepted Answer

A) True 
 B)False

Question 12

Today,a regular _____________ is a system where you can exchange goods for other goods.You submit your goods and you receive trade credit that you can use to buy other goods.

Accepted Answer

A)  world market
B)  barter exchange
C)  world trade center
D)  trading postE) A) and B)
F) B) and C)

Question 13

The __________ insures deposits held in credit unions.

Accepted Answer

A)  Federal Credit Insurance Agency FCI
A)  
B)  Credit Union Insurance Fund CUIF) 
C)  Federal Deposit Insurance Corporation FDI
C)  
D)  National Credit Union Administration NCU
A)  E) A) and D)
F) B) and C)

Question 14

International bankers prefer to invest in their own countries whenever possible.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following institutions monitors the monetary policies of member nations to ensure a global monetary system that works best for all nations?

Accepted Answer

A)  The International Monetary Fund
B)  The World Bank
C)  The International Development Administration
D)  The International Reserve BankE) A) and B)
F) A) and C)

Question 16

Savings and loan associations,also known as thrift institutions,were created to promote consumer thrift and home ownership.

Accepted Answer

A) True 
 B)False

Question 17

Typically,banks impose a service charge for check-writing privileges or demand a minimum deposit.

Accepted Answer

A) True 
 B)False

Question 18

Economic events in other nations seldom impact the powerful U.S.economy.

Accepted Answer

A) True 
 B)False

Question 19

The strength of the U.S.dollar depends on the strength of the U.S.economy relative to the economies of other nations.

Accepted Answer

A) True 
 B)False

Question 20

One of the most important aspects of the banking legislation passed during the 1930s established:

Accepted Answer

A)  the Federal Reserve System.
B)  the gold standard for currency.
C)  the Comptroller of the currency.
D)  federal deposit insurance.E) B) and C)
F) All of the above

Exam 20: Money,financial Institutions,and the Federal Reserve

Today,a regular _____________ is a system where you can exchange goods for other goods.You submit your goods and you receive trade credit that you can use to buy other goods.

Correct Answer
verified

The International Monetary Fund does not lend money.

Correct Answer
verified

Correct Answer
verified

Typically,banks impose a service charge for check-writing privileges or demand a minimum deposit.

Correct Answer
verified

Which of the following institutions monitors the monetary policies of member nations to ensure a global monetary system that works best for all nations?

Correct Answer
verified

A direct payment is a pre-authorized electronic payment.

Correct Answer
verified

One of the most important aspects of the banking legislation passed during the 1930s established:

Correct Answer
verified

Economic events in other nations seldom impact the powerful U.S.economy.

Correct Answer
verified

Savings and loan associations,also known as thrift institutions,were created to promote consumer thrift and home ownership.

Correct Answer
verified

Banks prefer that customers use an electronic funds transfer system rather than traditional methods of payment because:

Correct Answer
verified

The reserve requirement represents the interest rate charged by the Federal Reserve for government guaranteed student loans.

Correct Answer
verified

A significant decrease in the money supply tends to:

Correct Answer
verified

International bankers prefer to invest in their own countries whenever possible.

Correct Answer
verified

The __________ insures deposits held in credit unions.

Correct Answer
verified

For banks,the check processing activities:

Correct Answer
verified

A time deposit that earns interest is a _______________.

Correct Answer
verified

Correct Answer
verified

The strength of the U.S.dollar depends on the strength of the U.S.economy relative to the economies of other nations.

Correct Answer
verified

When Mr.Smith in Quince Orchard,MD uses a check to buy a tractor from Mr.Brown in Austin,TX,__________ different banks are involved in the transaction.

Correct Answer
verified

Credit unions are for-profit cooperatives.

Correct Answer
verified

Exam 20: Money,financial Institutions,and the Federal Reserve

Today,a regular _____________ is a system where you can exchange goods for other goods.You submit your goods and you receive trade credit that you can use to buy other goods.

Correct AnswerverifiedShow Answer

The International Monetary Fund does not lend money.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Typically,banks impose a service charge for check-writing privileges or demand a minimum deposit.

Correct AnswerverifiedShow Answer

Which of the following institutions monitors the monetary policies of member nations to ensure a global monetary system that works best for all nations?

Correct AnswerverifiedShow Answer

A direct payment is a pre-authorized electronic payment.

Correct AnswerverifiedShow Answer

One of the most important aspects of the banking legislation passed during the 1930s established:

Correct AnswerverifiedShow Answer

Economic events in other nations seldom impact the powerful U.S.economy.

Correct AnswerverifiedShow Answer

Savings and loan associations,also known as thrift institutions,were created to promote consumer thrift and home ownership.

Correct AnswerverifiedShow Answer

Banks prefer that customers use an electronic funds transfer system rather than traditional methods of payment because:

Correct AnswerverifiedShow Answer

The reserve requirement represents the interest rate charged by the Federal Reserve for government guaranteed student loans.

Correct AnswerverifiedShow Answer

A significant decrease in the money supply tends to:

Correct AnswerverifiedShow Answer

International bankers prefer to invest in their own countries whenever possible.

Correct AnswerverifiedShow Answer

The __________ insures deposits held in credit unions.

Correct AnswerverifiedShow Answer

For banks,the check processing activities:

Correct AnswerverifiedShow Answer

A time deposit that earns interest is a _______________.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The strength of the U.S.dollar depends on the strength of the U.S.economy relative to the economies of other nations.

Correct AnswerverifiedShow Answer

When Mr.Smith in Quince Orchard,MD uses a check to buy a tractor from Mr.Brown in Austin,TX,__________ different banks are involved in the transaction.

Correct AnswerverifiedShow Answer

Credit unions are for-profit cooperatives.

Correct AnswerverifiedShow Answer

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