SUBJECTS
|
BROWSE
|
CAREER CENTER
|
POPULAR
|
JOIN
|
LOGIN
Business Skills
|
Soft Skills
|
Basic Literacy
|
Certifications
About
|
Help
|
Privacy
|
Terms
Search
Test your basic knowledge |
DSST Money Banking And Interest Rates
Start Test
Study First
Subjects
:
dsst
,
banking
Instructions:
Answer 26 questions in 15 minutes.
If you are not ready to take this test, you can
study here
.
Match each statement with the correct term.
Don't refresh. All questions and answers are randomly picked and ordered every time you load a test.
This is a study tool. The 3 wrong answers for each question are randomly chosen from answers to other questions. So, you might find at times the answers obvious, but you will see it re-enforces your understanding as you take the test each time.
1. The date when the face amount of a loan becomes due
Nominal interest rate
Maturity date
Monetary base
Reserves
2. Debt issued by the federal government or by a state or local government; how the government borrows money
Nominal interest rate
Coupon payments
Government bonds
Currency
3. Percentage of the size of a loan per unit of time - typically per year
Monetary base
Interest rate
Overnight interest rates
Money supply
4. Total value of all currency outside the central bank and commercial banks' net reserves with the central bank
Monetary base
Government bonds
Money supply
Floating interest rate
5. The rate the central bank wants the overnight rate to be
Overnight interest rates
Nominal interest rate
Federal funds rate
Money supply
6. A medium of exchange; a unit of account; store of value
Real interest
Transmission mechanism
Government bonds
Three economic functions of money
7. A ripple effect in which a change in spending by one person or business leads to additional changes in spending by another person or business
Multiplier effect
Maturity date
Fixed interest rate
Coupon payments
8. Constant percentage paid on a loan
Yield curve
Fixed interest rate
Interest
Interest rate
9. The policy directed at controlling money supply and the interest rates
Coupon payments
Government bonds
Monetary policy
Overnight interest rates
10. Variable percentage paid on a loan - depending on market conditions
Central bank
Federal funds rate
Yield curve
Floating interest rate
11. The price paid for the use of borrowed money
Maturity date
Yield curve
Interest
Multiplier effect
12. Obligation by commercial banks to hold a small percentage of deposits in their vaults or as a deposit at the central bank
Income
Overnight interest rates
Reserve requirements
Money
13. Rates for loans over a single night - the shortest of all interest rates
Interest rate
Overnight interest rates
Central bank
Money
14. Mechanism central bank uses that allows its target rate to affect inflation
Floating interest rate
Transmission mechanism
Monetary base
Reserve requirements
15. The total value of all the money in the country at a given point in time
Monetary base
Money supply
Currency
Fixed interest rate
16. Interest rate that shows the growth of your money not corrected for inflation
Currency
Nominal interest rate
Wealth
Transmission mechanism
17. Any commodity or token that is generally accepted as payment of goods and services
Money
Reserves
Interest rate
Federal funds rate
18. Amount of money that a lender pays when a bond is issued
Reserve requirements
Monetary base
Issue price
Transmission mechanism
19. Graph of interest rates of different maturity (recalculated to yearly rates) at a particular point in time
Money supply
Money
Yield curve
Nominal interest rate
20. Interest rate that shows the growth of what your money can buy
Monetary policy
Transmission mechanism
Fixed interest rate
Real interest
21. Small percentage of deposits commercial banks are required to hold either in their vaults or as a deposit at the central bank
Yield curve
Reserve requirements
Currency
Reserves
22. A public authority responsible for monetary policy of a country or group of countries
Central bank
Transmission mechanism
Three economic functions of money
Interest rate
23. Flow of currency units over a period of time
Income
Wealth
Reserve requirements
Floating interest rate
24. Paper and coins that can be used as money outside of a commercial bank
Currency
Money supply
Overnight interest rates
Interest rate
25. Financial resources such as stocks - bonds - real estate and other property that have value but need to be converted into money to be used for that value
Real interest
Wealth
Overnight interest rates
Currency
26. Regular payments paid on a loan at regular intervals
Coupon payments
Three economic functions of money
Reserve requirements
Wealth