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






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






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






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






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






6. Praises rising at a fast and furious pace






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






8. 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






9. Rare






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






11. It will shift it to the right.






12. Yield curves most always...






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






14. They have a higher interest-rate risk.






15. Intermediate Yields are highest






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






17. 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.






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






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






21. Precious Metals or another valueable commodity






22. Long-Term Debt and Equity Instruments






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






24. Influence on business cycle - inflation - interest rates






25. A share of ownership in a corporation






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






27. 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.






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






29. The percent of available labor force unemployed






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






31. It determines the equilibrium interest rate in terms of the supply of land demanded for money . People store their wealth in money and bonds. If the market for money is in equilibrium (Ms=Md) then the bond markets are also in equilibrium (Bs=Bd)






32. Many lead to more employment and output






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






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






35. Short-Term Debt Instruments






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






37. 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.






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






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






40. More than 10 year maturities






41. Paper currency - has no real value






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






43. Flow of earnings per unit of time






44. Less than one year and service current liquidity needs






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






46. Alters publics liquidity and influences spending through portfolio adjustment






47. Comparing payoffs at different points in time






48. Allowing consumers to time their purchases better.






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






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