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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. The relationship between yield and maturity is...






2. Used to measure value in the economy






3. More than 10 year maturities






4. Paper currency - has no real value






5. Bringing together of buyers and sellers of financial securities to establish prices; includes banks - savings and loans - credit unions - investment banks - and brokers - mutual funds - and bond markets.






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






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






8. Less than one year and service current liquidity needs






9. Alters publics liquidity and influences spending through portfolio adjustment






10. Precious Metals or another valueable commodity






11. Negotiable in secondary market and can also be resold in the secondary market. Minimum purchase of $100 -000 but the minimum in the secondary market is $2 -000 -000.






12. 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.






13. The return expected over the next period on one asset relative to the alternative asset.






14. Instrumental in moving funds between countries






15. A dollar paid to you one year from now is less valueable than a dollar paid to you today






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






17. Cost of borrowing money - expressed as a percentage of the amount borrowed per year.






18. Banks borrow from and lend to each other deposits they hold at the Fed. These are very short term and usually only held over night.






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






20. The upward and downward movement of aggregate output produced in the economy.






21. Small depository institutions report infrequently and adjustments must be made for seasonal variations






22. 2 -5 -10 year maturities






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






24. No interest- rate risk

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25. Foreign currencies deposited in banks outside the home country.






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






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






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






29. Purchase financial assets which lowers interest rates which stimulates business investment and consumer spending






30. Used to save purchasing power; most liquid of all assets but loses value during inflation






31. Currency + Traveler's Checks+ Demand Deposits + Other checkable deposits






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






33. Real interest rate: the real interest rate actually realized.






34. The percent of available labor force unemployed






35. The increase in the price of set goods and services in a given economy over a period of time - the percent change.






36. Praises rising at a fast and furious pace






37. 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.






38. A share of ownership in a corporation






39. How interest rates on bonds of different maturities move over time






40. Bond denominated in a currency other than that of the country in which it is sold.






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






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






43. Determines interest rates






44. 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.






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






46. Short-Term Debt Instruments






47. Rare






48. They have a higher interest-rate risk.






49. A debt security that promises to make payments periodically for a specified period of time.






50. Pays owner of bond a fixed payment - until maturity when it pays off face par value






Can you answer 50 questions in 15 minutes?



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