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






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






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






5. 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.






6. Nominal interest rate is not adjusted for inflation.






7. It will shift it to the right.






8. Many lead to more employment and output






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






10. 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






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






12. Praises rising at a fast and furious pace






13. Greater incentive to borrow and less to lend.






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






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






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






17. Alters publics liquidity and influences spending through portfolio adjustment






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






19. Intermediate Yields are highest






20. Allowing consumers to time their purchases better.






21. The percent of available labor force unemployed






22. 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.






23. More than 10 year maturities






24. Long-Term Debt and Equity Instruments






25. 2 -5 -10 year maturities






26. Comparing payoffs at different points in time






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






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






29. Instrumental in moving funds between countries






30. 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.






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






32. 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.






33. 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.






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






35. Lower the equilibrium price and interest rate.






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






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






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






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






40. Held for one- ten years.






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






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






43. Most Common






44. No interest- rate risk

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






46. Yield curves most always...






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






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






49. Less than one year and service current liquidity needs






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