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