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. Most Common






2. The market for loanable funds: (or equivalently - the market for bonds) determines R. One-for-One






3. The central bank






4. Held ten years or more. They pay semiannual dividends and return of principal at maturity.






5. Rare






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






7. Precious Metals or another valueable commodity






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






9. Take the form of promissory notes - drafts - checks - and CDs






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






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






12. Fixed payment (incorporating part of the principal and interest payment) paid over a period of time






13. 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.






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






15. Short-Term securities are very good substitutes for each other within investor's portfolios who collectively impact the market. There aren't separate markets for short-term and long-term securities - there is one single market.






16. Flow of earnings per unit of time






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






18. Influence on business cycle - inflation - interest rates






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






20. 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.






21. Short-Term Debt Instruments






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






23. Yields similar for all maturities






24. Periods of declining aggregate output - unemployment high - investment is low.






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






26. Crucial role in creation of money






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






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






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






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






31. 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.






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






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






34. More than 10 year maturities






35. 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






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






37. When interest rates are high relative to past rates - investors expect them to decline and the prices of bonds to rise in the future resulting in big capital gains. Investors would then favor long term securities which drives up price and lowers yiel






38. 2 -5 -10 year maturities






39. 4 -13 -26 -52 week maturities. Sold at zero coupon rates






40. Held for one- ten years.






41. They have a higher interest-rate risk.






42. Does not deal directly with the public and responsible for executing of the national monetary policy; implements policy by altering money supply and influencing bank behavior.






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






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






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






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






47. Higher default risk compared to municipal Bonds






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






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






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







Sorry!:) No result found.

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