Question 1

The money supply represents the amount of money the Federal Reserve Bank makes available for people to buy goods and services.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following institutions monitors the monetary policies of member nations to ensure a global monetary system that works best for all nations?

Accepted Answer

A)   International Monetary Fund
B)   World Bank
C)   International Development Administration
D)   International Reserve BankE) A) and B)
F) A) and C)

Question 3

Open-market operations is the buying and selling of government securities by the Federal Reserve Board.

Accepted Answer

A) True 
 B)False

Question 4

Payroll debit cards

Accepted Answer

A)   are protected if lost or stolen.
B)   have limited use because they can only act as a credit card, and the recipient does not have access to cash.
C)   must go through the Federal Reserve's Automated Clearing House system.
D)   can be issued to persons without bank accounts who can use them to pay bills online, or access cash from an ATM.E) B) and C)
F) A) and D)

Question 5

Technically, a bank can require depositors to give prior notice before they withdraw funds from time deposits.

Accepted Answer

A) True 
 B)False

Question 6

When Natalia exchanges her famous chocolate chip cookies for the lawn care services of her neighbor, she engages in a barter transaction.

Accepted Answer

A) True 
 B)False

Question 7

Trading internationally by using money appears easy and almost effortless, but the fact is there is a very complex banking system that makes it happen.

Accepted Answer

A) True 
 B)False

Question 8

The president of the island nation of Winstone refuses to raise taxes, but wants to expand many government services and increase the size of Winstone's armed forces. He plans to pay for all of the desired expenditures by printing more money. If the president carries out his plan by rapidly increasing the supply of money, Winstone will likely experience

Accepted Answer

A)   a severe recession.
B)   reduced private sector spending.
C)   widespread surpluses of goods and services.
D)   an increase in the rate of inflation.E) All of the above
F) None of the above

Question 9

Historically, there was ________ a central bank in the U.S.

Accepted Answer

A)   very little resistance to
B)   resistance to
C)   insufficient funding of
D)   disinterest inE) All of the above
F) A) and D)

Question 10

All federally chartered banks are members of the Federal Reserve.

Accepted Answer

A) True 
 B)False

Question 11

When the Federal Reserve wants to increase the money supply, they decrease the reserve requirement.

Accepted Answer

A) True 
 B)False

Question 12

When the Federal Reserve pursues policies that increase interest rates, the amount of foreign funds flowing into the United States also increases.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following represent an independent agency of the U.S. government that insures bank deposits?

Accepted Answer

A)   National Deposit Assurance Cooperative
B)   Federal Deposit Insurance Corporation
C)   Insurance Corporation of America
D)   Deposit Protection FundE) B) and D)
F) C) and D)

Question 14

A(n)  ________ allows money to be exchanged electronically more quickly and more economically than with paper checks.

Accepted Answer

A)   electronic check conversion (EC
C)  
B)   electronic funds transfer system (EFT) 
C)   virtual banking operation (VBO) 
D)   telechecking system (TEL
E)  E) A) and D)
F) C) and D)

Question 15

After Xavier and Alyssa deposited nearly $55,000 in a savings account at Bigbux Bank, the bank failed and filed for bankruptcy. Because the Bigbux was an FDIC member bank, Xavier and Alyssa

Accepted Answer

A)   should be protected because their account is fully insured by the FDIC.
B)   can recover up to $25,000, but they will probably lose the rest since their deposits exceed the maximum coverage offered by the FDIC.
C)   will lose their savings because the FDIC only insures business deposits.
D)   will be eligible to recover 80 percent of the value of their deposit, less a $2,500 deductible.E) C) and D)
F) All of the above

Question 16

Credit unions are for-profit cooperatives.

Accepted Answer

A) True 
 B)False

Question 17

Created during the Great Depression, the federal deposit insurance program resulted in a large number of bank failures.

Accepted Answer

A) True 
 B)False

Question 18

Originally, savings and loan associations

Accepted Answer

A)   offered brokerage services to small investors.
B)   promoted consumer thrift and home ownership.
C)   acted as a fiscal agent for the federal government, and issued and redeemed U.S. savings bonds.
D)   handled the overflow of business from national and state banks.E) A) and B)
F) A) and C)

Question 19

Barter involves the use of electronic payment systems, like PayPal, for online transactions.

Accepted Answer

A) True 
 B)False

Question 20

An increase in the rate of inflation would likely result from a(n)

Accepted Answer

A)   decrease in spending by the federal government.
B)   rise in the unemployment rate.
C)   rise in interest rates.
D)   increase in the supply of money in circulation.E) A) and B)
F) A) and D)

Exam 20: Money, Financial Institutions, and the Federal Reserve

Barter involves the use of electronic payment systems, like PayPal, for online transactions.

Correct Answer
verified

Correct Answer
verified

Which of the following represent an independent agency of the U.S. government that insures bank deposits?

Correct Answer
verified

Which of the following institutions monitors the monetary policies of member nations to ensure a global monetary system that works best for all nations?

Correct Answer
verified

Trading internationally by using money appears easy and almost effortless, but the fact is there is a very complex banking system that makes it happen.

Correct Answer
verified

All federally chartered banks are members of the Federal Reserve.

Correct Answer
verified

Technically, a bank can require depositors to give prior notice before they withdraw funds from time deposits.

Correct Answer
verified

When Natalia exchanges her famous chocolate chip cookies for the lawn care services of her neighbor, she engages in a barter transaction.

Correct Answer
verified

When the Federal Reserve pursues policies that increase interest rates, the amount of foreign funds flowing into the United States also increases.

Correct Answer
verified

An increase in the rate of inflation would likely result from a(n)

Correct Answer
verified

Created during the Great Depression, the federal deposit insurance program resulted in a large number of bank failures.

Correct Answer
verified

Credit unions are for-profit cooperatives.

Correct Answer
verified

The money supply represents the amount of money the Federal Reserve Bank makes available for people to buy goods and services.

Correct Answer
verified

Originally, savings and loan associations

Correct Answer
verified

When the Federal Reserve wants to increase the money supply, they decrease the reserve requirement.

Correct Answer
verified

Payroll debit cards

Correct Answer
verified

After Xavier and Alyssa deposited nearly $55,000 in a savings account at Bigbux Bank, the bank failed and filed for bankruptcy. Because the Bigbux was an FDIC member bank, Xavier and Alyssa

Correct Answer
verified

A(n) ________ allows money to be exchanged electronically more quickly and more economically than with paper checks.

Correct Answer
verified

Open-market operations is the buying and selling of government securities by the Federal Reserve Board.

Correct Answer
verified

Historically, there was ________ a central bank in the U.S.

Correct Answer
verified

Exam 20: Money, Financial Institutions, and the Federal Reserve

Barter involves the use of electronic payment systems, like PayPal, for online transactions.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following represent an independent agency of the U.S. government that insures bank deposits?

Correct AnswerverifiedShow Answer

Which of the following institutions monitors the monetary policies of member nations to ensure a global monetary system that works best for all nations?

Correct AnswerverifiedShow Answer

Trading internationally by using money appears easy and almost effortless, but the fact is there is a very complex banking system that makes it happen.

Correct AnswerverifiedShow Answer

All federally chartered banks are members of the Federal Reserve.

Correct AnswerverifiedShow Answer

Technically, a bank can require depositors to give prior notice before they withdraw funds from time deposits.

Correct AnswerverifiedShow Answer

When Natalia exchanges her famous chocolate chip cookies for the lawn care services of her neighbor, she engages in a barter transaction.

Correct AnswerverifiedShow Answer

When the Federal Reserve pursues policies that increase interest rates, the amount of foreign funds flowing into the United States also increases.

Correct AnswerverifiedShow Answer

An increase in the rate of inflation would likely result from a(n)

Correct AnswerverifiedShow Answer

Created during the Great Depression, the federal deposit insurance program resulted in a large number of bank failures.

Correct AnswerverifiedShow Answer

Credit unions are for-profit cooperatives.

Correct AnswerverifiedShow Answer

The money supply represents the amount of money the Federal Reserve Bank makes available for people to buy goods and services.

Correct AnswerverifiedShow Answer

Originally, savings and loan associations

Correct AnswerverifiedShow Answer

When the Federal Reserve wants to increase the money supply, they decrease the reserve requirement.

Correct AnswerverifiedShow Answer

Payroll debit cards

Correct AnswerverifiedShow Answer

After Xavier and Alyssa deposited nearly $55,000 in a savings account at Bigbux Bank, the bank failed and filed for bankruptcy. Because the Bigbux was an FDIC member bank, Xavier and Alyssa

Correct AnswerverifiedShow Answer

A(n) ________ allows money to be exchanged electronically more quickly and more economically than with paper checks.

Correct AnswerverifiedShow Answer

Open-market operations is the buying and selling of government securities by the Federal Reserve Board.

Correct AnswerverifiedShow Answer

Historically, there was ________ a central bank in the U.S.

Correct AnswerverifiedShow Answer

Correct Answer
verified

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