ch.10 test

What is the total amount repaid on a loan when the interest rate is 9 percent?

$11,944.80

What is the total interest paid on a loan when the interest rate is 10 percent?

$2,654.24

Which interest rate is better for banks?

10 percent

Which interest rate is better for consumers?

8 percent

The First Bank of the United States was created by

Alexander Hamilton

The exchange of goods and services without using money is called

Barter

Fractional reserve banking

Fractional reserve banking

Which of the following is NOT a type of financial institution in the United States?

Industrial Banks

A system of national banks and the issuing of a national currency were the result of the

National Banking Act of 1863

Demand deposits are

checking accounts

Money whose value is based on the type of material from which it is made is called

commodity money

The main difference between a credit union and a bank is that

credit unions have membership requirements

From 1836 to 1863, there was no national oversight of banking. What was the result?

financial panics and economic instability

Wildcat banks were banks

in remote areas that issued bank notes of questionable value

What is the main difference among the three loans shown on this table?

interest rate

For what purpose was the First Bank of the United States created?

issue a national currency, control the money supply, and lend money

________ is anything that people will accept as payment for goods and services.

money

Representative Money is

money that is backed by something tangible

Fiat Money is

money that is declared by the government to have worth

One of the physical properties of money is

portability

One of the economic properties of money is

scarcity

A money that can be saved without losing its value over time acts as a

store of value

What is the purpose of the Federal Reserve System?

to make loans to banks, issue currency, and regulate the money supply

The Federal Reserve System is

twelve regional banks with a central decision-making board

The main difficulty of a barter system is finding

two people who have what each other wants