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