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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. Flow of currency units over a period of time
Maturity date
Income
Interest
Monetary policy
2. Percentage of the size of a loan per unit of time - typically per year
Interest rate
Fixed interest rate
Coupon payments
Real interest
3. Amount of money that a lender pays when a bond is issued
Currency
Issue price
Multiplier effect
Fixed interest rate
4. Small percentage of deposits commercial banks are required to hold either in their vaults or as a deposit at the central bank
Reserves
Yield curve
Overnight interest rates
Interest rate
5. The price paid for the use of borrowed money
Interest
Money supply
Reserves
Federal funds rate
6. The rate the central bank wants the overnight rate to be
Maturity date
Money supply
Reserves
Federal funds rate
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
Multiplier effect
Wealth
Floating interest rate
Maturity date
8. A medium of exchange; a unit of account; store of value
Monetary policy
Nominal interest rate
Fixed interest rate
Three economic functions of money
9. Graph of interest rates of different maturity (recalculated to yearly rates) at a particular point in time
Three economic functions of money
Real interest
Money supply
Yield curve
10. Variable percentage paid on a loan - depending on market conditions
Transmission mechanism
Floating interest rate
Multiplier effect
Real interest
11. Regular payments paid on a loan at regular intervals
Coupon payments
Three economic functions of money
Nominal interest rate
Central bank
12. Rates for loans over a single night - the shortest of all interest rates
Overnight interest rates
Reserve requirements
Currency
Interest rate
13. Interest rate that shows the growth of your money not corrected for inflation
Interest
Federal funds rate
Overnight interest rates
Nominal interest rate
14. 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
Interest rate
Wealth
Income
Real interest
15. Total value of all currency outside the central bank and commercial banks' net reserves with the central bank
Money supply
Money
Monetary base
Interest rate
16. The total value of all the money in the country at a given point in time
Wealth
Money supply
Nominal interest rate
Monetary base
17. Constant percentage paid on a loan
Fixed interest rate
Issue price
Government bonds
Maturity date
18. A public authority responsible for monetary policy of a country or group of countries
Transmission mechanism
Multiplier effect
Monetary base
Central bank
19. Paper and coins that can be used as money outside of a commercial bank
Currency
Money
Nominal interest rate
Multiplier effect
20. Interest rate that shows the growth of what your money can buy
Government bonds
Central bank
Real interest
Overnight interest rates
21. Debt issued by the federal government or by a state or local government; how the government borrows money
Government bonds
Coupon payments
Interest rate
Money supply
22. Mechanism central bank uses that allows its target rate to affect inflation
Overnight interest rates
Interest
Transmission mechanism
Money supply
23. Any commodity or token that is generally accepted as payment of goods and services
Money
Income
Currency
Central bank
24. The policy directed at controlling money supply and the interest rates
Three economic functions of money
Issue price
Multiplier effect
Monetary policy
25. Obligation by commercial banks to hold a small percentage of deposits in their vaults or as a deposit at the central bank
Central bank
Reserve requirements
Government bonds
Overnight interest rates
26. The date when the face amount of a loan becomes due
Maturity date
Money supply
Real interest
Monetary base