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DSST Money Banking And Interest Rates

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. Paper and coins that can be used as money outside of a commercial bank






2. Flow of currency units over a period of time






3. A medium of exchange; a unit of account; store of value






4. The price paid for the use of borrowed money






5. A public authority responsible for monetary policy of a country or group of countries






6. The date when the face amount of a loan becomes due






7. The policy directed at controlling money supply and the interest rates






8. 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






9. Amount of money that a lender pays when a bond is issued






10. Percentage of the size of a loan per unit of time - typically per year






11. Any commodity or token that is generally accepted as payment of goods and services






12. Rates for loans over a single night - the shortest of all interest rates






13. The rate the central bank wants the overnight rate to be






14. Debt issued by the federal government or by a state or local government; how the government borrows money






15. Regular payments paid on a loan at regular intervals






16. The total value of all the money in the country at a given point in time






17. Mechanism central bank uses that allows its target rate to affect inflation






18. Obligation by commercial banks to hold a small percentage of deposits in their vaults or as a deposit at the central bank






19. Variable percentage paid on a loan - depending on market conditions






20. Interest rate that shows the growth of your money not corrected for inflation






21. Constant percentage paid on a loan






22. Interest rate that shows the growth of what your money can buy






23. Total value of all currency outside the central bank and commercial banks' net reserves with the central bank






24. Small percentage of deposits commercial banks are required to hold either in their vaults or as a deposit at the central bank






25. Graph of interest rates of different maturity (recalculated to yearly rates) at a particular point in time






26. 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