SUBJECTS
|
BROWSE
|
CAREER CENTER
|
POPULAR
|
JOIN
|
LOGIN
Business Skills
|
Soft Skills
|
Basic Literacy
|
Certifications
About
|
Help
|
Privacy
|
Terms
|
Email
Search
Test your basic knowledge |
DSST Money Banking And Interest Rates
Start Test
Study First
Subjects
:
dsst
,
banking
Instructions:
Answer 26 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. Small percentage of deposits commercial banks are required to hold either in their vaults or as a deposit at the central bank
Fixed interest rate
Reserves
Monetary base
Maturity date
2. Constant percentage paid on a loan
Currency
Fixed interest rate
Monetary policy
Money
3. Graph of interest rates of different maturity (recalculated to yearly rates) at a particular point in time
Interest rate
Real interest
Yield curve
Issue price
4. A medium of exchange; a unit of account; store of value
Federal funds rate
Three economic functions of money
Currency
Money
5. The total value of all the money in the country at a given point in time
Monetary base
Multiplier effect
Money supply
Coupon payments
6. Interest rate that shows the growth of your money not corrected for inflation
Reserves
Fixed interest rate
Nominal interest rate
Overnight interest rates
7. A ripple effect in which a change in spending by one person or business leads to additional changes in spending by another person or business
Interest rate
Overnight interest rates
Multiplier effect
Floating interest rate
8. Mechanism central bank uses that allows its target rate to affect inflation
Transmission mechanism
Coupon payments
Money
Interest
9. Interest rate that shows the growth of what your money can buy
Central bank
Reserves
Real interest
Federal funds rate
10. Paper and coins that can be used as money outside of a commercial bank
Money supply
Monetary policy
Income
Currency
11. Regular payments paid on a loan at regular intervals
Fixed interest rate
Yield curve
Interest rate
Coupon payments
12. Flow of currency units over a period of time
Income
Yield curve
Reserve requirements
Government bonds
13. Obligation by commercial banks to hold a small percentage of deposits in their vaults or as a deposit at the central bank
Money
Real interest
Nominal interest rate
Reserve requirements
14. Variable percentage paid on a loan - depending on market conditions
Floating interest rate
Issue price
Money supply
Interest rate
15. Financial resources such as stocks - bonds - real estate and other property that have value but need to be converted into money to be used for that value
Coupon payments
Wealth
Nominal interest rate
Government bonds
16. The date when the face amount of a loan becomes due
Interest rate
Overnight interest rates
Maturity date
Floating interest rate
17. Rates for loans over a single night - the shortest of all interest rates
Overnight interest rates
Federal funds rate
Real interest
Three economic functions of money
18. Any commodity or token that is generally accepted as payment of goods and services
Coupon payments
Currency
Money
Real interest
19. The price paid for the use of borrowed money
Interest rate
Monetary policy
Reserve requirements
Interest
20. Total value of all currency outside the central bank and commercial banks' net reserves with the central bank
Income
Central bank
Monetary base
Monetary policy
21. A public authority responsible for monetary policy of a country or group of countries
Central bank
Reserves
Income
Floating interest rate
22. The policy directed at controlling money supply and the interest rates
Money supply
Overnight interest rates
Interest
Monetary policy
23. Percentage of the size of a loan per unit of time - typically per year
Floating interest rate
Interest rate
Three economic functions of money
Real interest
24. Debt issued by the federal government or by a state or local government; how the government borrows money
Money
Real interest
Government bonds
Three economic functions of money
25. The rate the central bank wants the overnight rate to be
Reserves
Federal funds rate
Interest
Issue price
26. Amount of money that a lender pays when a bond is issued
Three economic functions of money
Transmission mechanism
Issue price
Interest