BUS 300 Ch 15 quiz
State banks are:
chartered by the state in which they are based
Which of the following is an example of a depository financial institution?
credit union
Cupcakes, hamburgers, and cut flowers would not make good mediums of exchange because they lack the key characteristic of:
durability
Financial intermediation is the process in which:
financial institutions act as intermediaries between the suppliers and demanders of funds
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
The Federal Reserve controls the minimum amount that a purchaser of securities must deposit with a stock brokerage firm in order to purchase stock. This minimum amount is called the _____ requirement.
margin
The most important function of the Federal Reserve System is carrying out ______ policy.
monetary
Ruth Hu recently inherited $200,000. She has invested the inherited money in real estate and government securities. Hu is using her money as a:
store of value
Money market deposit accounts and certificates of deposit are officially called ______ deposits.
time