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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