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






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






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






5. 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






6. The price paid for the use of borrowed money






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






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






9. 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






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






11. Constant percentage paid on a loan






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






13. Flow of currency units over a period of time






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






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






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






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






18. Regular payments paid on a loan at regular intervals






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






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






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






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






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






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






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






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