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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. A number that when multiplied by a change in the reserves in the banking system - yields a resulting change in the money supply.
Transactions Approach
M2
Liquidity Approach
Money Multiplier
2. Any item the sellers will accept as payment.
Liquidity Approach
Medium of Exchange
Asymmetric Information
Federal Reserve Banks
3. 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.
Fiduciary Monetary System
Liabilities
Money
Money Multiplier
4. The amount of money in circulation
Medium of Exchange
Transactions Approach
Money Supply
Potential Money Multiplier
5. Transaction Deposits
What is more liquid: Old Master Paintings or Transaction Deposits?
Board of Governors
M2
Barter
6. Amounts owed; the legal claims against a business or household by nonowners.
Barter
Board of Governors
M2
Liabilities
7. The direct exchange of goods and services for other goods and services other goods and services without the use of money.
Federal Open Market Committee
Store of Value
Barter
Money Multiplier
8. Small-Denomination time-deposits - saving deposits and money market funds.
What are the three items the belong exclusively to M2?
Central Bank
Moral Hazard
Reserves
9. A measure by which prices are expressed;the common denominator of the price system; a central property of money.
Unit of Accounting
Store of Value
Standard of Deferred Payment
Asymmetric Information
10. A method of measuring the money supply by looking at money as a medium of exchange.
M2
Transactions Approach
Barter
Liabilities
11. 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.
Board of Governors
Standard of Deferred Payment
Federal Reserve Banks
Barter
12. The money supply - measured as the total value of currency + transactions deposits +traveler's checks not issued by banks.
Reserves
M1
Standard of Deferred Payment
Board of Governors
13. 7 appointed members that set reserve requirements - approve discount rates - supervises and regulates member banks - and oversee Federal Reserve Banks
Potential Money Multiplier
Barter
Assets
Board of Governors
14. A method of measuring the money supply by looking at money as a temporary store of value.
Board of Governors
Liquidity Approach
Fiduciary Monetary System
M2
15. Institutions that transfer funds between ultimate lenders (savers) and ultimate borrowers.
What are the three items the belong exclusively to M2?
Money Multiplier
Barter
Financial Intermediaries
16. 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.
What are the three items the belong exclusively to M2?
Asymmetric Information
Standard of Deferred Payment
Thrift Institutions
17. In the U.S Federal Reserve System - deposits held by Federal reserve District banks for depository institutions - plus depository instituitions' vault cash.
Reserves
M1
Financial Intermediation
Transactions Deposits
18. A system in which depository institutions hold reserves that are less that the amount of total deposits.
Potential Money Multiplier
Board of Governors
Transactions Deposits
Fractional Reserve Banking
19. Financial institutions that accept deposits from savers and lend funds from those deposits out at interest.
Unit of Accounting
Liquidity
Potential Money Multiplier
Depository Institutions
20. Information possessed by one party in financial transaction but not by the other party.
Asymmetric Information
Money Supply
What is more liquid: Old Master Paintings or Transaction Deposits?
Fiduciary Monetary System
21. 1/reserve ratio
Store of Value
Potential Money Multiplier
Board of Governors
Assets
22. Amount owed; all items to which a business or household hold legal claim.
Fractional Reserve Banking
Liquidity
Money Multiplier
Assets
23. A board of governors and 5 reserve bank presidents that direct open market operations-buying and selling existing U.S Government securities.
Moral Hazard
Federal Open Market Committee
Barter
Financial Intermediation
24. 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.
Money
Depository Institutions
Standard of Deferred Payment
Board of Governors
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.
Standard of Deferred Payment
Moral Hazard
Depository Institutions
Liquidity
26. 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.
M2
Moral Hazard
Central Bank
Transactions Approach
27. 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.
Liquidity
Money
Unit of Accounting
Assets
28. The possibilty that a borrower might engage in riskier behavior after a loan has been obtained.
Reserves
What are the three items the belong exclusively to M2?
Money Multiplier
Moral Hazard
29. 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
Federal Reserve Banks
Transactions Deposits
Depository Institutions
Asymmetric Information
30. Includes everything in M1 and Savings Deposits - small-denomination time deposits - and money market mutual funds.
Money Supply
Moral Hazard
M1
M2
31. The process by which financial institutions accept savings from businesses - households - and governments and lend the savings to other businesses - households - and governments.
What are the three items the belong exclusively to M2?
Financial Intermediation
Standard of Deferred Payment
Asymmetric Information
32. The ability to hold value over time; a necessary property of money.
M1
Store of Value
Money
Thrift Institutions