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






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






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






5. Alters publics liquidity and influences spending through portfolio adjustment






6. What will investors expect for taking on higher default risk?






7. It will shift it to the right.






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






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






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






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






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






13. 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.






14. Many lead to more employment and output






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






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






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






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






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






21. 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






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






23. Determines interest rates






24. The percent of available labor force unemployed






25. Praises rising at a fast and furious pace






26. Used to measure value in the economy






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






28. Yields similar for all maturities






29. 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.






30. 4 -13 -26 -52 week maturities. Sold at zero coupon rates






31. 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.






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






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






34. Intermediate Yields are highest






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






36. No interest- rate risk


37. A bank loan typically used by a company to finance storage or shipment of goods. This bank draft is like a check - and guarantees future payment. These securities are active in the Secondary Market


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






39. Rare






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






41. Short-Term Debt Instruments






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






43. Excess liquidity is spent on goods and services






44. Flow of earnings per unit of time






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






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






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






48. The central bank






49. Held for one- ten years.






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