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DSST Money Banking And Central Banking

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. The amount of money in circulation






2. 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.






3. Includes everything in M1 and Savings Deposits - small-denomination time deposits - and money market mutual funds.






4. A number that when multiplied by a change in the reserves in the banking system - yields a resulting change in the money supply.






5. In the U.S Federal Reserve System - deposits held by Federal reserve District banks for depository institutions - plus depository instituitions' vault cash.






6. The process by which financial institutions accept savings from businesses - households - and governments and lend the savings to other businesses - households - and governments.






7. Small-Denomination time-deposits - saving deposits and money market funds.






8. 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.






9. 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.






10. 1/reserve ratio






11. 7 appointed members that set reserve requirements - approve discount rates - supervises and regulates member banks - and oversee Federal Reserve Banks






12. A method of measuring the money supply by looking at money as a medium of exchange.






13. Financial institutions that accept deposits from savers and lend funds from those deposits out at interest.






14. 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






15. Information possessed by one party in financial transaction but not by the other party.






16. A board of governors and 5 reserve bank presidents that direct open market operations-buying and selling existing U.S Government securities.






17. Institutions that transfer funds between ultimate lenders (savers) and ultimate borrowers.






18. The ability to hold value over time; a necessary property of money.






19. Transaction Deposits






20. 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.






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.






22. 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.






23. A method of measuring the money supply by looking at money as a temporary store of value.






24. Any item the sellers will accept as payment.






25. 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.






26. A measure by which prices are expressed;the common denominator of the price system; a central property of money.






27. The direct exchange of goods and services for other goods and services other goods and services without the use of money.






28. Amount owed; all items to which a business or household hold legal claim.






29. A system in which depository institutions hold reserves that are less that the amount of total deposits.






30. The possibilty that a borrower might engage in riskier behavior after a loan has been obtained.






31. Amounts owed; the legal claims against a business or household by nonowners.






32. The money supply - measured as the total value of currency + transactions deposits +traveler's checks not issued by banks.