Section 3 Unit 3 Practice Exam

With a maturity term of one year or less

A Treasury bill is a Treasury security ______.

With a maturity term of 30 years

A Treasury bond is a Treasury security ______.

Bill

A short-term security issued by the Treasury that has a maturity term of one year or less is called a Treasury ______.

Sell securities

If the Treasury encounters a deficit, what actions might it take?

Set rules and regulations that member banks must follow

In addition to lending money to member banks, FHLBanks also do which of the following?

When the government's bills exceed income collected

In what situation would the U.S. Treasury be most willing to sell securities?

Payout

The two most common insolvency methods put in place when a bank fails are the purchase and assumption method and the ______ method.

Purchase and assumption

The two most common methods used when a bank fails are the payout method and the ______ method.

$250,000

Up to what amount will the FDIC insure?

Long- and short-term debt instruments

What are securities?

Supervises national banks and financial institutions.

What is one of the ways the U.S. Treasury promotes economic growth and stability?

Troubled Asset Relief Program

What program allowed the U.S. Treasury to spend hundreds of billions of dollars to stabilize our financial system, boost credit markets, help families avoid foreclosure, and promote economic growth?

Sell security

When the Treasury collects fewer funds than what is needed to pay the government's bills, what action might it take?

U.S. Treasury

Which of the following has a direct responsibility to pay the nation's bills?

Member banks can borrow for up to one year without collateral.

Which of the following is a true statement about FHLBanks?

Stock certificates

Which of the following would the FDIC most likely not insure?