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Test your basic knowledge |
DSST Money Banking And Central Banking
Start Test
Study First
Subjects
:
dsst
,
banking
Instructions:
Answer 32 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. Propose discount rates - hold reserves and lend them through the discount window - furnish currency - collect and clear checks for banks and handle the U.S government debt and cash balances.
Store of Value
Federal Reserve Banks
Money Multiplier
Depository Institutions
2. A method of measuring the money supply by looking at money as a medium of exchange.
Unit of Accounting
Transactions Approach
Federal Reserve Banks
Asymmetric Information
3. A board of governors and 5 reserve bank presidents that direct open market operations-buying and selling existing U.S Government securities.
Federal Open Market Committee
Assets
Asymmetric Information
Fractional Reserve Banking
4. Transaction Deposits
Money Multiplier
What is more liquid: Old Master Paintings or Transaction Deposits?
Reserves
What are the three items the belong exclusively to M2?
5. A method of measuring the money supply by looking at money as a temporary store of value.
Liquidity Approach
Money Supply
Central Bank
Asymmetric Information
6. A system in which depository institutions hold reserves that are less that the amount of total deposits.
Fractional Reserve Banking
Moral Hazard
Reserves
Depository Institutions
7. The process by which financial institutions accept savings from businesses - households - and governments and lend the savings to other businesses - households - and governments.
Fiduciary Monetary System
Fractional Reserve Banking
Financial Intermediation
Asymmetric Information
8. Small-Denomination time-deposits - saving deposits and money market funds.
Money Supply
Money
Barter
What are the three items the belong exclusively to M2?
9. The money supply - measured as the total value of currency + transactions deposits +traveler's checks not issued by banks.
Store of Value
Money Multiplier
What are the three items the belong exclusively to M2?
M1
10. The amount of money in circulation
Liquidity
Standard of Deferred Payment
Money Supply
M2
11. The ability to hold value over time; a necessary property of money.
Money
Liabilities
Store of Value
What are the three items the belong exclusively to M2?
12. Financial institutions that accept deposits from savers and lend funds from those deposits out at interest.
Central Bank
Depository Institutions
Federal Reserve Banks
Store of Value
13. The degree to which an asset can be acquired or disposed of without much danger of any intervening loss in nominal value and with small transaction costs. Money is the most liquid asset.
Money Multiplier
Federal Open Market Committee
Liquidity
Barter
14. A measure by which prices are expressed;the common denominator of the price system; a central property of money.
Assets
Unit of Accounting
What is more liquid: Old Master Paintings or Transaction Deposits?
What are the three items the belong exclusively to M2?
15. Checkable and debitable account balances in commercial banks and other types of financial institutions - such as credit unions and savings banks. Any accounts in financial institutions from which you can easily transmit debit-card and check payments
Assets
Transactions Deposits
What is more liquid: Old Master Paintings or Transaction Deposits?
Financial Intermediation
16. Institutions that transfer funds between ultimate lenders (savers) and ultimate borrowers.
Store of Value
Financial Intermediaries
Money Multiplier
Assets
17. Information possessed by one party in financial transaction but not by the other party.
Potential Money Multiplier
Asymmetric Information
Thrift Institutions
Medium of Exchange
18. A property of an item that makes it desirable for use as a means of settling debts maturing in the future; an essential property of money.
Standard of Deferred Payment
M2
Financial Intermediaries
Reserves
19. Amounts owed; the legal claims against a business or household by nonowners.
Potential Money Multiplier
Financial Intermediaries
Liabilities
Unit of Accounting
20. Amount owed; all items to which a business or household hold legal claim.
Unit of Accounting
What are the three items the belong exclusively to M2?
Transactions Approach
Assets
21. Any medium that is universally accepted in an economy both by sellers of goods and services as payment for those goods and services and by creditors as payment for debts.
Federal Open Market Committee
Financial Intermediation
Money
Standard of Deferred Payment
22. The direct exchange of goods and services for other goods and services other goods and services without the use of money.
What is more liquid: Old Master Paintings or Transaction Deposits?
Federal Reserve Banks
Barter
Money Multiplier
23. 7 appointed members that set reserve requirements - approve discount rates - supervises and regulates member banks - and oversee Federal Reserve Banks
Liquidity Approach
Board of Governors
Transactions Deposits
Liabilities
24. A banker's bank - usually an official institution that also serves as a bank for a nation's government treasury - Central Banks normally regulate commercial banks.
Central Bank
Asymmetric Information
Fiduciary Monetary System
Unit of Accounting
25. A number that when multiplied by a change in the reserves in the banking system - yields a resulting change in the money supply.
Store of Value
Potential Money Multiplier
Assets
Money Multiplier
26. Financial institutions that receive most of their funds from the savings of the public. They include savings banks - savings and loan associations - and credit unions.
Fiduciary Monetary System
Standard of Deferred Payment
Thrift Institutions
Reserves
27. 1/reserve ratio
Financial Intermediaries
Potential Money Multiplier
Board of Governors
Central Bank
28. Any item the sellers will accept as payment.
Barter
Medium of Exchange
Moral Hazard
Liquidity
29. In the U.S Federal Reserve System - deposits held by Federal reserve District banks for depository institutions - plus depository instituitions' vault cash.
Barter
Liabilities
Reserves
Moral Hazard
30. A system in which money is issued by the government and its value is based uniquely on the public's faith that the currency represents command over goods and services.
Federal Reserve Banks
Store of Value
Depository Institutions
Fiduciary Monetary System
31. Includes everything in M1 and Savings Deposits - small-denomination time deposits - and money market mutual funds.
Federal Open Market Committee
Assets
M2
Money Supply
32. The possibilty that a borrower might engage in riskier behavior after a loan has been obtained.
Financial Intermediaries
Moral Hazard
Standard of Deferred Payment
What are the three items the belong exclusively to M2?