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