Question 1

As nonprofit institutions,credit unions enjoy an exemption from federal income taxes.

Accepted Answer

A) True 
 B)False

Question 2

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 3

A banker's acceptance represents a promise that a bank will pay a specified amount at a specified time if certain conditions are met.

Accepted Answer

A) True 
 B)False

Question 4

When the Federal Reserve wants to increase the money supply,they decrease the reserve requirement.

Accepted Answer

A) True 
 B)False

Question 5

The National Credit Union Administration provides coverage up to $100,000 per individual depositor at each credit union.

Accepted Answer

A) True 
 B)False

Question 6

Savings and loan company failures soared in the early 1980s because:

Accepted Answer

A)  tax laws changed making real estate investments less attractive.
B)  the federal deposit insurance mismanaged their funds.
C)  legislation passed that favored commercial banks.
D)  investors identified more profitable opportunities.

Question 7

Which of the following explains why Internet banks often offer their customers better interest rates than traditional banks?

Accepted Answer

A)  Internet banks provide their customers a greater sense of security.
B)  Traditional banks charge lower prices for financial services.
C)  Internet banks have lower overhead costs.
D)  Traditional banks offer the electronic transfer of customer funds.

Question 8

When the U.S.was still a colony of Great Britain,land banks were created to lend money to farmers.

Accepted Answer

A) True 
 B)False

Question 9

A debit card is better than a credit card because it allows the purchaser to float a short term loan,until the credit card company sends the bills at the end of the month.

Accepted Answer

A) True 
 B)False

Question 10

Credit unions are for-profit cooperatives.

Accepted Answer

A) True 
 B)False

Question 11

Discuss the methods the FED uses to enact monetary policy and provide an explanation of the effects these methods have on the supply of money.

Accepted Answer

The Federal Reserve System has three bas...

Question 12

Single handedly,the U.S.government's lack of regulation caused the banking crisis and collapse of banks that had been in business for several decades.

Accepted Answer

A) True 
 B)False

Question 13

An electronic funds transfer system (EFT)is an electronic transaction system used for paying bills,making direct deposits of paychecks,and paying for a purchase.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following statements most accurately represents the history of U.S.banking?

Accepted Answer

A)  Although many technological changes have occurred,and banks have grown tremendously in size,the basic structure of banking in the United States has survived stability since the Revolutionary War.
B)  A major trend in U.S.banking was a move from federal control during the 1800s and early 1900s to a system now controlled by individual states.
C)  Although the early history of banking in the United States was very chaotic,the establishment of the Fed stabilized the banking system.
D)  The U.S.banking system has experienced a great deal of change and instability throughout its history.

Question 15

The ability to access funds without a penalty helps to explain why certificates of deposit (CDs)have gained popularity among conservative investors and savers.

Accepted Answer

A) True 
 B)False

Question 16

A few retailers enable their customers to pay for gas by using a ________ card that electronically transmits information through an embedded radio-frequency antenna.

Accepted Answer

A)  credit
B)  smart
C)  debit
D)  e-commerce

Question 17

Designed to create more confidence in banking institutions,the FDIC was established:

Accepted Answer

A)  soon after the Civil War.
B)  in 1908,as the result of the banking panic in 1907.
C)  in 1917,as the nation entered World War I.
D)  during the Great Depression of the 1930s.

Question 18

The ___________ plays a role in making certain that checks clear,and sellers get paid.

Accepted Answer

A)  National Check Register
B)  Federal Reserve System
C)  Uniform Commercial Check Processors
D)  paypal.com network

Question 19

According to the Reaching Beyond Our Borders box in Chapter 20,titled,"The Banking Crisis Goes Global",several of China's small businesses could not continue to operate during the economic downturn of 2008-2010,without lending institutions willing to keep them afloat.Chinese banks tightened their belts,and many of these fledgling businesses went under.

Accepted Answer

A) True 
 B)False

Question 20

Payroll debit cards:

Accepted Answer

A)  are protected if lost or stolen.
B)  have limited use because they can only act as a credit card,and the recipient does not have access to cash.
C)  must go through the Federal Reserve's Automated Clearing House system.
D)  can be issued to persons without bank accounts who can use it to pay bills online,or access cash from an ATM machine.

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

Single handedly,the U.S.government's lack of regulation caused the banking crisis and collapse of banks that had been in business for several decades.

Correct Answer
verified

Correct Answer
verified

A banker's acceptance represents a promise that a bank will pay a specified amount at a specified time if certain conditions are met.

Correct Answer
verified

Credit unions are for-profit cooperatives.

Correct Answer
verified

Savings and loan company failures soared in the early 1980s because:

Correct Answer
verified

As nonprofit institutions,credit unions enjoy an exemption from federal income taxes.

Correct Answer
verified

Designed to create more confidence in banking institutions,the FDIC was established:

Correct Answer
verified

The ___________ plays a role in making certain that checks clear,and sellers get paid.

Correct Answer
verified

Payroll debit cards:

Correct Answer
verified

When the U.S.was still a colony of Great Britain,land banks were created to lend money to farmers.

Correct Answer
verified

A few retailers enable their customers to pay for gas by using a ________ card that electronically transmits information through an embedded radio-frequency antenna.

Correct Answer
verified

An electronic funds transfer system (EFT)is an electronic transaction system used for paying bills,making direct deposits of paychecks,and paying for a purchase.

Correct Answer
verified

Discuss the methods the FED uses to enact monetary policy and provide an explanation of the effects these methods have on the supply of money.

Correct Answer
verified
The Federal Reserve System has three bas...
View Answer

The National Credit Union Administration provides coverage up to $100,000 per individual depositor at each credit union.

Correct Answer
verified

Which of the following explains why Internet banks often offer their customers better interest rates than traditional banks?

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

Which of the following statements most accurately represents the history of U.S.banking?

Correct Answer
verified

A debit card is better than a credit card because it allows the purchaser to float a short term loan,until the credit card company sends the bills at the end of the month.

Correct Answer
verified

When the Federal Reserve wants to increase the money supply,they decrease the reserve requirement.

Correct Answer
verified

The ability to access funds without a penalty helps to explain why certificates of deposit (CDs)have gained popularity among conservative investors and savers.

Correct Answer
verified

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

Single handedly,the U.S.government's lack of regulation caused the banking crisis and collapse of banks that had been in business for several decades.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

A banker's acceptance represents a promise that a bank will pay a specified amount at a specified time if certain conditions are met.

Correct AnswerverifiedShow Answer

Credit unions are for-profit cooperatives.

Correct AnswerverifiedShow Answer

Savings and loan company failures soared in the early 1980s because:

Correct AnswerverifiedShow Answer

As nonprofit institutions,credit unions enjoy an exemption from federal income taxes.

Correct AnswerverifiedShow Answer

Designed to create more confidence in banking institutions,the FDIC was established:

Correct AnswerverifiedShow Answer

The ___________ plays a role in making certain that checks clear,and sellers get paid.

Correct AnswerverifiedShow Answer

Payroll debit cards:

Correct AnswerverifiedShow Answer

When the U.S.was still a colony of Great Britain,land banks were created to lend money to farmers.

Correct AnswerverifiedShow Answer

A few retailers enable their customers to pay for gas by using a ________ card that electronically transmits information through an embedded radio-frequency antenna.

Correct AnswerverifiedShow Answer

An electronic funds transfer system (EFT)is an electronic transaction system used for paying bills,making direct deposits of paychecks,and paying for a purchase.

Correct AnswerverifiedShow Answer

Discuss the methods the FED uses to enact monetary policy and provide an explanation of the effects these methods have on the supply of money.

Correct AnswerverifiedThe Federal Reserve System has three bas...View AnswerShow Answer

The National Credit Union Administration provides coverage up to $100,000 per individual depositor at each credit union.

Correct AnswerverifiedShow Answer

Which of the following explains why Internet banks often offer their customers better interest rates than traditional banks?

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

Which of the following statements most accurately represents the history of U.S.banking?

Correct AnswerverifiedShow Answer

A debit card is better than a credit card because it allows the purchaser to float a short term loan,until the credit card company sends the bills at the end of the month.

Correct AnswerverifiedShow Answer

When the Federal Reserve wants to increase the money supply,they decrease the reserve requirement.

Correct AnswerverifiedShow Answer

The ability to access funds without a penalty helps to explain why certificates of deposit (CDs)have gained popularity among conservative investors and savers.

Correct AnswerverifiedShow 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

Correct Answer
verified
The Federal Reserve System has three bas...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified