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