BUS 300 Ch 15 quiz

State banks are:

chartered by the state in which they are based

Which of the following is an example of a depository financial institution?

credit union

Cupcakes, hamburgers, and cut flowers would not make good mediums of exchange because they lack the key characteristic of:

durability

Financial intermediation is the process in which:

financial institutions act as intermediaries between the suppliers and demanders of funds

To stimulate the economy, the Federal Reserve can:

lower the reserve requirement

Thrift institutions were formed specifically to encourage household savings and to:

make home mortgage loans

The Federal Reserve controls the minimum amount that a purchaser of securities must deposit with a stock brokerage firm in order to purchase stock. This minimum amount is called the _____ requirement.

margin

The most important function of the Federal Reserve System is carrying out ______ policy.

monetary

Ruth Hu recently inherited $200,000. She has invested the inherited money in real estate and government securities. Hu is using her money as a:

store of value

Money market deposit accounts and certificates of deposit are officially called ______ deposits.

time