BUSA 2115 Ch 15 Quiz
credit union
A _____ is a financial institution owned and controlled by its depositors, who usually have a common employer, profession, trade group, or religion.
checking account
A _____ refers to money stored in an account at a bank or other financial institutions that can be withdrawn without advance notice and does not have much restriction.
the money supply in the economy increases
If the Federal Reserve Board decreases reserve requirements for banking institutions, _____.
banks make fewer loans
If the Federal Reserve Board increases reserve requirements for banking institutions, _____.
economic activity slows down
If the Federal Reserve Board raises the discount rate to banking institutions, _____.
buy government securities usually from large banks.
If the Federal Reserve Board wants to increase the money supply and the economic activity, it is likely to:
allows people to postpone purchases without fear that money will decline in value.
In the context of characteristics of money, the principle of stability:
commercial real estate loans.
Insurance companies typically invest large amount of excess funds from premiums or make long-term loans, particularly to businesses in the form of:
virtually impossible to counterfeit.
Many countries use specially watermarked papers that make money
$250,000
Should a member bank of the Federal Deposit Insurance Corporation fail, its depositors can recover all of their funds, up to _____.
help stop bank failures throughout the United States.
The Federal Depository Insurance Corporation was established in 1933 to:
economic
The Federal Reserve Board is the chief _____ policy arm of the United States.
mutual funds
The _____ can afford to invest in hundreds of securities at any one time, minimizing the risks of any single security that does not do well.
Federal Reserve Board
The _____ has the authority to approve or disapprove mergers between banks and the formation of bank holding companies.
discount rate
The _____ is the rate of interest the Federal Reserve Board charges to loan money to any banking institution to meet reserve requirements.
open market operations
The four basic tools using which the Federal Reserve Board fine-tunes money growth are reserve requirements, discount rates, credit controls, and _____.
pension fund
The individual retirement account is a type of _____.
reserve requirement
The percentage of deposits that banking institutions must hold "in the vault," as it were, is called the _____.
online brokerage firms
The rise of _____ has helped investors who want to buy and sell stocks and bonds themselves at low costs.
the money supply in the economy decreases
When the Federal Reserve Board sells government securities, _____.
It lent money at the discount window to nonbanks.
Which of the following actions did the Federal Reserve Board take to stabilize the financial environment after the financial markets collapsed in 2007-2008?
Divisibility
Which of the following characteristics of money requires that all items used must be valued in terms of comparable units for money to serve effectively as a measure of value?
Open market operations
Which of the following is the most commonly employed monetary tool of all Federal Reserve Board actions and is performed almost daily in an effort to control the money supply?
The Fed is the lender of last resort for banks that want to borrow money.
Which of the following is true of the Federal Reserve Board (the Fed)?
It decreases teller transactions.
Which of the following statements is true of a debit card?
The institution that issues the credit card guarantees payment of a credit charge to merchants.
Which of the following statements is true of credit cards?
Investment bankers
Who among the following underwrite new issues of securities for corporations, states, and municipalities needed to raise money in the capital markets?
Barter
With _____, as a medium of exchange, the lack of divisibility often makes otherwise preferable trades impossible.
Money market accounts
_____ offer higher interest rates than standard bank rates but with greater restrictions.
Commercial banks
the oldest of all financial institutions.