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