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






2. 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.






3. Lower the equilibrium price and interest rate.






4. 30 year maturities but not since 2001






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






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






7. 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.






8. Yield curves most always...






9. 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.






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






11. Financial instruments whose return is based on the underlying returns on mortgage loans.






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






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






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






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






16. Rare






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






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






19. More than 10 year maturities






20. How interest rates on bonds of different maturities move over time






21. Alters publics liquidity and influences spending through portfolio adjustment






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






23. Crucial role in creation of money






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






25. Higher default risk compared to municipal Bonds






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






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






28. Allowing consumers to time their purchases better.






29. The percent of available labor force unemployed






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






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






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






33. 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.






34. Many lead to more employment and output






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






36. Greater incentive to borrow and less to lend.






37. Long-Term Debt and Equity Instruments






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






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






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






41. A share of ownership in a corporation






42. Flow of earnings per unit of time






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






44. 4 -13 -26 -52 week maturities. Sold at zero coupon rates






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






46. 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.






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






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






49. 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






50. Most Common






Can you answer 50 questions in 15 minutes?



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