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. The central bank






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






3. Short-Term Debt Instruments






4. Allowing consumers to time their purchases better.






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






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






7. Most Common






8. 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.






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






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






11. Long-Term Debt and Equity Instruments






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






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






14. 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.






15. Yield to maturity; a measure of an interternporal price






16. Anything that is generally accepted in payment for goods or services or in the repayment of debts; a stock concept






17. A higher level of income causes the demand for money at each interest rate to increase and the demand curve to shift to the right.






18. Rare






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






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






21. Principal plus interest paid to lender at given maturity date






22. Alters publics liquidity and influences spending through portfolio adjustment






23. Bought at price below face value and face value repaid at maturity






24. The percent of available labor force unemployed






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






26. Promotes economic efficiency by minimizing the time spent in exchanging goods and services






27. Precious Metals or another valueable commodity






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






29. Less accurate but is less difficult to calculate. It always understates the yield to maturity and becomes more severe the longer the maturity.






30. No interest- rate risk

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


31. Intermediate Yields are highest






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






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






34. 3 -6 -12 month securities with no explicit one payment and is sold at a discount. These securities are highly liquid - and can be traded in the secondary market. These are some of the safest securities.






35. Yield curves most always...






36. 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.






37. Determines interest rates






38. Instrumental in moving funds between countries






39. It will shift it to the right.






40. Expectations theory forms the foundation of the slope of the curve. Liquidity Premium Theory makes Long Term permanent modifications that suggests an up ward slopping curve. Over short periods - relatives supplies of securities have an impact on yiel






41. Reduces adverse selection - moral hazard - and insider trading.






42. Used to measure value in the economy






43. Paper currency - has no real value






44. The relationship between yield and maturity is...






45. Real interest rate: the real interest rate people expect at the time they buy a bond or tax out a loan.






46. Long-Term debt instruments of Corporations which are held 2-30 years. These securities have excellent credit ratings and pay interest two times a year and pay at maturity. These can be redeemed for shares of stock.






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






48. 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.






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






50. At lower prices (higher i) - ceteris paribus - the quantity demanded of bonds is higher- an inverse relationship ' ' the quantity supplied of bonds is lower- a positive relationship.