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Which statement about a falling dollar value in the global market is correct?
A falling dollar value means you cannot buy as many goods and services in the global market.
Which statements are correct about banking?
Banking is now a global industry. Issues around the world can influence banking on the local level.
Which statements about commercial banks are true? (Select all that apply)
Commercial banks make loans from the deposits of its customers. Commercial banks are equally responsible to their depositors and borrowers.
An independent agency of the U.S. government that insures bank deposits is called the ______.
Federal Deposit Insurance Corporation
is the organization that has the most power over the currency in the United States.
Federal reserve
What role of the Federal Reserve has been cited as contributing to the banking crisis of 2008?
It kept the cost of borrowing too low.
What role did banks play in the banking crisis of 2008?
They did not take creditworthiness into account when making loans.
Generally speaking, commercial banks grant loans based on ______.
a borrower's creditworthiness
A major problem during the Great Depression created by a weak banking system was Blank______.
a run on and closure of many banks
Which of the following best describes electronic funds transfer (EFT)?
a way to send funds from one computer to another
Commercial banks, savings and loans, credit unions, and non-banks are all considered to be a part of the U.S.
banking
The direct trading of goods and services for other goods and services is called
barter
The exchange of goods and services for other goods and services is referred to as ______.
bartering
Major duties of the Federal Reserve include ______. (Select all that apply)
buying and selling government securities setting reserve requirements collecting data on money policy
Top U.S. retail banks allow customers to access their accounts online so they can ______. (Select all that apply)
check account balances pay bills transfer funds
The methods the Federal Reserve uses to manage the economy include all except ______.
control the federal budget
A nonprofit, member-owned financial cooperative that offers the full variety of banking services to their members is called a ______.
credit union
A checking account is also referred to as a ______.
demand deposit
Nonbanks are financial organizations that accept no
deposits
The interest rate the Federal Reserve charges for loans made to its member banks is called the _____ rate.
discount
The economic condition that results from a continual rise in prices, or what some people call "too much money chasing too few goods" is
inflation
The Federal Deposit Insurance Corporation (FDIC) is an independent agency of the U.S. government that ______.
insures bank deposits
The discount rate is the ______.
interest rate that the Federal Reserve charges for loans to member banks
allows bank customers the ability to complete most transactions electronically without leaving home.
internet
As a result of the Great Depression, Congress established deposit insurance to ______.
make sure depositors did not lose money in a bank failure
Financial organizations that accept no deposits but offer many of the same services as regular banks are called ______.
nonbanks
Which four institutions are members of the U.S. banking system?
nonbanks that offer financial services savings and loans commercial banks credit unions
Customers can have access to most banking functions electronically, wherever the customer is located through the use of
online
A letter of credit is a promise by a bank to ______.
pay the seller a given amount if certain conditions are met
The primary reason for the creation of the Federal Reserve was to ______.
prevent another crisis of bank failures
S&Ls were originally set up to ______.
promote home ownership
One of the reasons for the banking crisis was that banks were pressured by Congress and other groups to make Blank______ loans.
questionable
Often called "thrifts," this financial institution primarily offers checking and savings accounts and makes long-term loans for residential mortgages.
savings and loan association
Setting the reserve requirement, setting the discount rate, and collection data on the money supply are all activities of ______.
the Federal Reserve
The organization responsible for funding international economic development is ______.
the World Bank
Throughout the history of the United States, central banks were created and disbanded with much controversy until ______ ensured that a central bank was needed.
the bank panic of 1907
Credit unions are owned by ______.
the credit union's members
In the United States, the Federal Reserve is in charge of ______.
the money supply
The reserve requirement is ______.
the percentage amount of a bank's checking and savings that must be kept in the bank
The percentage of commercial banks' checking and savings accounts that must be kept in the bank is referred to as ______.
the reserve requirement
The World Bank is responsible for financing ______.
economic development
funds transfer system, transactions are sent directly from one computer to another.
electronic
A way to send transactions directly from one computer to another instead of using a paper check is through the use of ______. (Select all that apply)
electronic funds transfer (EFT) debit cards
When the Federal Reserve buys and sells government bonds it is ______.
engaging in open market operations
A demand deposit (checking account) is known as that because ______.
funds may be withdrawn at any time by its owner
Banking is not just a domestic function anymore since it is influenced by
global
Banking has to be seen today as ______.
global in nature
Open-market operations consist of the buying and selling of ______.
government bonds
The amount of goods and services you can buy with a dollar in the global market ______.
increases with a rising dollar value
A condition characterized by a continual rise in prices for goods and services is termed ______.
inflation
If the Federal Reserve suddenly vastly increased the amount of money in circulation, it could lead to ______.
inflation