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