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