FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

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

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 1

Multiple Choice

Review LaterAdd Note

Review Later

________ involves the Fed buying and selling U.S.government securities to increase or decrease the money supply.

A) Discounting
B) Reserve requirements
C) Deficit funding
D) Open-market operations

Correct Answer

verified

Show Answer

Question 2

Multiple Choice

Review LaterAdd Note

Review Later

A comparison of an interest-bearing checking account and a savings account reveals that:

A) while a NOW account pays interest,a savings account does not.
B) a NOW account must be held to maturity,while funds in a savings account are available on demand.
C) deposits in checking accounts are technically demand deposits,but deposits in savings accounts are time deposits.
D) interest earned on NOW accounts is tax deductible,while interest earned on passbook savings accounts is taxable income.

Correct Answer

verified

Show Answer

Question 3

True/False

Review LaterAdd Note

Although there are many new ways to perform electronic funds transfer,legally,the only way that an employer can pay an employee is by writing a check.

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

During the early 1980s,the federal government responded to the severe problems plaguing savings and loan associations by:

An increase in the rate of inflation would likely result from a(n) :

Xavier deposited $75,000 in various individual accounts at his local credit union.He and his wife also have a joint savings account worth $34,500.The total amount for which the National Credit Union Administration (NCUA) would insure these deposits would be:

Lower fees and better interest rates motivate customers to open accounts with Internet banks.However,the lack of personal service and concern for information security encourages some customers to return to a traditional bank.

Economic growth and the creation of jobs depend on the availability of money.

There is much speculation that prior to the banking crisis of 2008-2010,the Fed (Federal Reserve System)and the SEC (Securities and Exchange Commission)were not enforcing the regulations they were charged to enforce.

Which of the following is not included in the M-1 or M-2 definitions of the money supply?

Which of the following historical events motivated Congress to establish the Federal Reserve System?

The Fed bought several billion dollars worth of U.S.government securities.The purpose of this action is to:

When the Fed increases the reserve requirement,banks make fewer loans.

International bankers make loans wherever they can get the maximum return for their money.

Money is anything people generally accept as payment for goods and services.

Chipper's Golf Resort plans to use famous Kauri wood from New Zealand for parts of the interior of the magnificent club house at its new golf resort near Portland,OR.According to the importer,each ten foot slab will cost Chipper's approximately $5,000.Looking at the exchange rates,Chipper's finance director noted that $500 US dollars = $738 NZ dollars.The importer will order directly from his source in New Zealand.Chipper's finance director has determined that:

Theoretically,with the proper monetary policy,the U.S.economy can continue to grow without causing inflation.

A "run on the bank" occurs when large numbers of depositors lose faith in the banking system and withdraw their deposits.

Pension funds invest monies contributed by employers and/or employees for the benefit of their members' retirement.