Business final exam ch 15
Insurance policy holders make premium payments to buy financial protection. Insurance companies invest the premiums in:
All of the above
Credit cards:
Are accurately Described by all of the above
National banks:
Are accurately described by all of the above
Cupcakes, hamburgers, and cut flowers would not make good medium of exchange because they like the Key characteristic of:
Durability
The Federal deposit insurance Corporation (FDIC):
Is accurately described by all of the above
Which of the following is not one of the key characteristics required in order for money to be an acceptable medium of exchange?
Profitability
_________ are two types of thrift institutions.
Savings banks and savings loan associations
When Hadley Jones wanted to buy a truck so he could get to and from his job in a nearby community, his credit rating was poor. Jones found that the only place he could get a loan was from a(n) ______ finance company.
Consumer
A checking account is also commonly referred to as a:
Demand deposit
In the process of financial intermediation, households, businesses, and governments can all be categorized as:
Demanders of funds
Financial institutions can be divided into two broad categories. These are ________ institutions.
Depository and non-depository
The banking act of 1933 gave the federal reserve system the authority to:
Do all of the above
Which federal agency is responsible for processing and clearing checks between financial institutions?
Federal reserve
Financial institutions act as intermediaries between suppliers and demanders of funds. They except savers deposits and invest them in such things as business loans or mortgages. This process is called:
Financial intermediation
Dakota mining company pays its bills and employees with checks drawn on a bank from another part of the country. Checks usually take about three days to clear the firms account. __________ Is the advantage gained during the check-clearing time.
Float
Hal Silverstein has a savings account, also called a_______ ,at his local credit union
Time deposit
__________ our deposits at a bank or other financial institution that pay interest but cannot be withdrawn on demand without penalty.
Time deposits
Competing against foreign banks can be difficult for US banks because
Foreign banks are subject to fewer regulations than US banks
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
Which of the following statements about credit unions is true?
None of the above statements about credit unions is true.
________ our large pools of money set aside by corporations, unions, and governments for later use and paying retirement benefits to their employees or members.
Pension funds
The power of the federal reserve has to control credit terms on some loans made by banks and other lending institutions is called
Selective credit controls
Thrift institutions:
Were formed specifically to encourage household savings
In its role as lender lender to member banks, the federal reserve is called the:
Bankers bank
Adam Hassib works for the Federal deposit insurance Corporation. He arrives on announced at member banks where he conducts audits of managerial and financial practices. Hassib is a:
Bank examiner
Which of the following is an example of non-depository financial institutions?
Commercial finance companies
For a college student who needs to buy an $80 textbook, the money she received from her parents for the purchase of school supplies would be used as a:
Medium of exchange
__________ is anything (regardless of form) that is acceptable as payment for goods and services.
Money
Boulders, building trusses, and lead ingots would not make good mediums of exchange because they lack the key characteristic of:
Portability