Question 1

The Fed uses ________ to regulate the money supply.

Accepted Answer

A)  stock market investments
B)  the deposit requirement
C)  the political negotiation process
D)  the discount rateE) A) and B)
F) C) and D)

Question 2

____________ represent money set aside by corporations,nonprofit organizations,or unions to cover part of the retirement needs of their members.

Accepted Answer

A)  Annuity accounts
B)  Pension funds
C)  Individual retirement accounts
D)  Term-life retirement fundsE) A) and B)
F) None of the above

Question 3

The three basic tools the Fed uses to manage the money supply are reserve requirements,open-market operations,and the discount rate.

Accepted Answer

A) True 
 B)False

Question 4

__________ includes anything that people generally accept as payment for goods and services.

Accepted Answer

A)  An intangible asset
B)  Money
C)  A commodity
D)  A barter goodE) All of the above
F) B) and C)

Question 5

Identify and discuss the tools and products that electronically transfer funds.

Accepted Answer

In an electronic funds transfer EFT)syst...

Question 6

Critics of the World Bank charge the organization with:

Accepted Answer

A)  financially supporting the military of oppressive leaders.
B)  financing projects that damage the ecosystem.
C)  lending most of its money to poor nations.
D)  a wide array of computer security violations.E) C) and D)
F) A) and D)

Question 7

If the Fed increases interest rates in the U.S.relative to other nations,

Accepted Answer

A)  foreign investors are likely to transfer funds to U.S.investments.
B)  foreign investors are likely to reduce their investment in U.S.securities.
C)  foreign governments will likely reduce their interest rates further,to remain complimentary to what the U.S.is doing.
D)  foreign investors will see this as a sign of a looming recession and redirect their funds to time deposits.E) A) and C)
F) B) and C)

Question 8

High startup costs cause Internet banks to have higher operating costs than traditional banks.

Accepted Answer

A) True 
 B)False

Question 9

When comparing a letter of credit and a banker's acceptance for financing international business transactions,a letter of credit:

Accepted Answer

A)  provides payment anywhere in the world.A banker's acceptance pays in areas in which the bank has a branch.
B)  pays a specified amount if certain conditions are met.Conversely,a banker's acceptance represents an unconditional promise to pay.
C)  requires both the buyer and seller to deal in the same currencies.A banker's acceptance provides for currency exchange.
D)  provides financing directly between buyers and sellers in different countries.A banker's acceptance provides an arrangement in which a bank serves as a broker taking title to the goods.E) All of the above
F) A) and D)

Question 10

Describe and compare the three major types of organizations that make up the U.S.banking system: commercial banks,savings and loan associations,and credit unions.

Accepted Answer

The U.S.banking system consists primaril...

Question 11

Chipper's Golf Resort plans to carry an inventory of golf clubs - irons,drivers,and woods from a German manufacturer.The manufacturer has promised delivery in four weeks,which will be just in time for the beginning of Chipper's golf season at its Chicago course.In order to prudently watch cash flow,you have recommended that Chipper's Resort sign a letter of credit with an international bank asking the bank to disburse payment when the clubs arrive at the Chicago course and after they are inspected.

Accepted Answer

A) True 
 B)False

Question 12

The World Bank primarily finances projects to protect the environment.

Accepted Answer

A) True 
 B)False

Question 13

There is much speculation that prior to the recent banking crisis,the Fed Federal Reserve System)and the SEC Securities and Exchange Commission)were not enforcing the regulations they were charged to enforce.

Accepted Answer

A) True 
 B)False

Question 14

Several European countries report a significant decrease in the level of jobs,income,and production of goods and services.The size and strength of the U.S.economy insulates U.S.businesses from the economic problems of other countries.

Accepted Answer

A) True 
 B)False

Question 15

________ persuaded Congress to establish the first central bank in the United States.

Accepted Answer

A)  Benjamin Franklin
B)  David Farragaut
C)  Franklin Roosevelt
D)  Alexander HamiltonE) A) and B)
F) A) and C)

Question 16

Credit unions represent nonprofit,member-owned financial cooperatives that offer the full variety of banking services to their members.

Accepted Answer

A) True 
 B)False

Question 17

Internet banks offer customers better interest rates and lower fees because these businesses avoid the costs of constructing and maintaining a bank building.

Accepted Answer

A) True 
 B)False

Question 18

When the value of the U.S.dollar increases relative to other currencies:

Accepted Answer

A)  the rate of inflation increases.
B)  the size of the national debt decreases.
C)  foreign goods become less expensive to U.S.consumers.
D)  U.S.goods become less expensive to foreign buyers.E) A) and C)
F) A) and D)

Question 19

Both the M-1 and M-2 definitions of money include coins and paper money.

Accepted Answer

A) True 
 B)False

Question 20

Given the size and strength of the U.S.economy and the widespread use of the dollar,the Federal Reserve essentially regulates international monetary markets.

Accepted Answer

A) True 
 B)False

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

The three basic tools the Fed uses to manage the money supply are reserve requirements,open-market operations,and the discount rate.

Correct Answer
verified

Identify and discuss the tools and products that electronically transfer funds.

Correct Answer
verified
In an electronic funds transfer EFT)syst...
View Answer

Several European countries report a significant decrease in the level of jobs,income,and production of goods and services.The size and strength of the U.S.economy insulates U.S.businesses from the economic problems of other countries.

Correct Answer
verified

Internet banks offer customers better interest rates and lower fees because these businesses avoid the costs of constructing and maintaining a bank building.

Correct Answer
verified

The World Bank primarily finances projects to protect the environment.

Correct Answer
verified

If the Fed increases interest rates in the U.S.relative to other nations,

Correct Answer
verified

When the value of the U.S.dollar increases relative to other currencies:

Correct Answer
verified

Critics of the World Bank charge the organization with:

Correct Answer
verified

________ persuaded Congress to establish the first central bank in the United States.

Correct Answer
verified

There is much speculation that prior to the recent banking crisis,the Fed Federal Reserve System)and the SEC Securities and Exchange Commission)were not enforcing the regulations they were charged to enforce.

Correct Answer
verified

When comparing a letter of credit and a banker's acceptance for financing international business transactions,a letter of credit:

Correct Answer
verified

Given the size and strength of the U.S.economy and the widespread use of the dollar,the Federal Reserve essentially regulates international monetary markets.

Correct Answer
verified

Both the M-1 and M-2 definitions of money include coins and paper money.

Correct Answer
verified

Describe and compare the three major types of organizations that make up the U.S.banking system: commercial banks,savings and loan associations,and credit unions.

Correct Answer
verified
The U.S.banking system consists primaril...
View Answer

High startup costs cause Internet banks to have higher operating costs than traditional banks.

Correct Answer
verified

The Fed uses ________ to regulate the money supply.

Correct Answer
verified

Credit unions represent nonprofit,member-owned financial cooperatives that offer the full variety of banking services to their members.

Correct Answer
verified

____________ represent money set aside by corporations,nonprofit organizations,or unions to cover part of the retirement needs of their members.

Correct Answer
verified

__________ includes anything that people generally accept as payment for goods and services.

Correct Answer
verified

Correct Answer
verified

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

The three basic tools the Fed uses to manage the money supply are reserve requirements,open-market operations,and the discount rate.

Correct AnswerverifiedShow Answer

Identify and discuss the tools and products that electronically transfer funds.

Correct AnswerverifiedIn an electronic funds transfer EFT)syst...View AnswerShow Answer

Several European countries report a significant decrease in the level of jobs,income,and production of goods and services.The size and strength of the U.S.economy insulates U.S.businesses from the economic problems of other countries.

Correct AnswerverifiedShow Answer

Internet banks offer customers better interest rates and lower fees because these businesses avoid the costs of constructing and maintaining a bank building.

Correct AnswerverifiedShow Answer

The World Bank primarily finances projects to protect the environment.

Correct AnswerverifiedShow Answer

If the Fed increases interest rates in the U.S.relative to other nations,

Correct AnswerverifiedShow Answer

When the value of the U.S.dollar increases relative to other currencies:

Correct AnswerverifiedShow Answer

Critics of the World Bank charge the organization with:

Correct AnswerverifiedShow Answer

________ persuaded Congress to establish the first central bank in the United States.

Correct AnswerverifiedShow Answer

There is much speculation that prior to the recent banking crisis,the Fed Federal Reserve System)and the SEC Securities and Exchange Commission)were not enforcing the regulations they were charged to enforce.

Correct AnswerverifiedShow Answer

When comparing a letter of credit and a banker's acceptance for financing international business transactions,a letter of credit:

Correct AnswerverifiedShow Answer

Given the size and strength of the U.S.economy and the widespread use of the dollar,the Federal Reserve essentially regulates international monetary markets.

Correct AnswerverifiedShow Answer

Both the M-1 and M-2 definitions of money include coins and paper money.

Correct AnswerverifiedShow Answer

Describe and compare the three major types of organizations that make up the U.S.banking system: commercial banks,savings and loan associations,and credit unions.

Correct AnswerverifiedThe U.S.banking system consists primaril...View AnswerShow Answer

High startup costs cause Internet banks to have higher operating costs than traditional banks.

Correct AnswerverifiedShow Answer

The Fed uses ________ to regulate the money supply.

Correct AnswerverifiedShow Answer

Credit unions represent nonprofit,member-owned financial cooperatives that offer the full variety of banking services to their members.

Correct AnswerverifiedShow Answer

____________ represent money set aside by corporations,nonprofit organizations,or unions to cover part of the retirement needs of their members.

Correct AnswerverifiedShow Answer

__________ includes anything that people generally accept as payment for goods and services.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified
In an electronic funds transfer EFT)syst...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
The U.S.banking system consists primaril...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified