Test your basic knowledge |

DSST Money And Banking

Subjects : dss, bankingt
Instructions:
  • Answer 50 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. Yields similar for all maturities






2. Seller will buy back the asset at a later date and typically at a higher price. These securities are usually government securities and are used by banks and Large Corporations.






3. 2 -5 -10 year maturities






4. Greater incentive to borrow and less to lend.






5. They channel funds from savers to investors - thereby promoting economic efficiency






6. Lower the equilibrium price and interest rate.






7. A bank loan typically used by a company to finance storage or shipment of goods. This bank draft is like a check - and guarantees future payment. These securities are active in the Secondary Market

Warning: Invalid argument supplied for foreach() in /var/www/html/basicversity.com/show_quiz.php on line 183


8. More than 10 year maturities






9. Medium of exchange; unit of account; store of value; increases the liquidity in the economy






10. Higher default risk compared to municipal Bonds






11. 4 -13 -26 -52 week maturities. Sold at zero coupon rates






12. The degree of uncertainty associated with the return on one asset relative to alternative assets.






13. The rate at which money circulates and the number of times the average dollar bill changes hands in a given time period






14. (Nominal) Interest Rate that is adjusted for expected changes in the price level. The more accurately reflects true cost of borrowing.






15. Allowing consumers to time their purchases better.






16. Short-Term Debt Instruments






17. Lower transaction costs - reduce risk - asymmetric information.






18. Producing an efficient allocation of capital - which increases production






19. The over the counter market. Equity shares offered by companies that don't meet listing requirements for major stock exchanges - or choose not to be listed there - and instead are traded in decentralized markets.






20. One to Ten year maturities which fund long-term capital investments






21. A rise in the price level causes the demand for money at each interest rates to increase and the demand curve to shift to the right.






22. Allows transfer of funds from person or business without investment opportunities to one who has them - improves economic efficiency.






23. Investors are concerned about the after tax return on bonds






24. Restrictions on Entry - Restrictions on Assets and Activities - Disclosure - Deposit Insurance - Limits on competition - and restriction on interest rates.






25. Graphical relationship of the yield on bonds with differing terms to maturity but the same risk - liquidity and tax considerations.






26. Excess liquidity is spent on goods and services






27. What kind of movements should we pay attention to in money supply numbers?






28. The interest rate at which private depository institutions lend balances to other depository institutions usually over night






29. Influence on business cycle - inflation - interest rates






30. No interest- rate risk

Warning: Invalid argument supplied for foreach() in /var/www/html/basicversity.com/show_quiz.php on line 183


31. Relationship among yields of different maturities of hte same type of security.






32. Nominal interest rate is not adjusted for inflation.






33. Commodity Money - Fiat Money - Checks - Electronic Payment - E-Money






34. Interest rate that equates today's value with present value of all future payments.






35. The central bank






36. Lower excess demand and lower price will rise and interest rates will fall






37. If short-term interest rates are low than the yield curve slopes...






38. Supply and demand concept for different maturities will establish the specific rates for each maturity range. Changes in supply and demand can cause the rates to get out of line with expectations. However investors will drop preferred habitat if rate






39. Lower excess supply and lower price will fall and interest rates will rise






40. The higher the default risk means the yield curve...






41. Used to measure value in the economy






42. The total collection of pieces of property that serve to store value






43. When bond is at par - the yield equals the coupon rate. The price and yield are negatively related. The yield greater than coupon rate when bond price is below par.






44. For a commodity to function efficiently as money it must be...






45. If the short-term interest rates are high than the yield curve slopes?






46. Markets bonds - loans - and deposits denominated in the currency of a given nation but held and traded outside that nations borders.






47. Long-Term Debt and Equity Instruments






48. Sold in a foreign country and denominated in that country's currency.






49. Lower Incentive to borrow but a greater incentive to lend.






50. Comparing payoffs at different points in time






Can you answer 50 questions in 15 minutes?



Let me suggest you:

Browse all subjects

Browse all tests

Most popular tests



Major Subjects

Tests & Exams


AP
CLEP
DSST
GRE
SAT
GMAT

Browse all subjects

Browse all tests

Most popular tests