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