Ch. 16 GBUS 140

Which of the following BEST describes the portability characteristic of money?

Which of the following terms refers to the interest level at which member banks can borrow money from the Federal Reserve System?

Which of the following financial institutions earn profits from loans taken from the funds in each of its depositors' accounts?

Savings and loan associations began primarily to loan money to small and medium-sized businesses.

Which of the following financial institutions was taken over by the Federal Housing Finance Agency when it was on the verge of financial failure?

Which of the following is NOT a primary tool for controlling the money supply?

Which of the following federal laws made transactions between banks significantly more efficient?

Which of the following statements BEST describes why U.S. Treasury securities have always been considered risk-free investments?

Regarding the international payments process, which statement is TRUE?

The overall value of the U.S. M-2 has grown considerably since 1979 due primarily to the increased use of credit cards and debit cards.

Which of the following BEST describes what is called the "open-market operations" of the Federal Reserve System?

In international payments, equal money inflows and outflows can result in no money being transferred between countries.

Which of the following BEST describes two of the three primary functions of the Federal Reserve System?

Which of the following actions can the Federal Deposit Insurance Company take in the event of a failure of one of its insured banks?

Which of the following political bodies appoints the members of the board of governors for the Federal Reserve System?

Which of the following pieces of information is not required by the USA Patriot Act for banks to collect for every customer?

Which of the following terms refers to the interest level at which commercial banks lend reserves to each other, usually overnight?

Which of the following financial institutions are considered to be owned by their depositors?

Which of the following recent events represent the two most significant impacts on changes in the money and banking system since 2000?

Under which of the following circumstances would the Federal Reserve System want to decrease the money supply by increasing the reserve requirement?

Banks create money through contracts with the government to mint bills and coins.

Which of the following statements BEST explains how financial institutions create money?

Which of the following statements BEST describes why a decrease in reserve requirements often results in an increase in the money supply?

Which of the following is the main justification for the World Bank to fund national improvements by making loans to build roads and hospitals?

An overly large decrease in the reserve requirement by the Federal Reserve System could result in inflation.

Which of the following is NOT part of the M-1 supply?

Which of the following statements is TRUE?

Which of the following agencies guarantees the safety of all of its members' bank accounts?

Which of the following terms refers to the percentage of its deposits a bank must hold, in cash or on deposit, with a Federal Reserve bank?

Which of the following transactions is not included among Automated Clearing House payments?

Which of the following BEST describes the stability characteristic of money?

Which of the following indices indicates the relative strength of the currencies of two countries?

When buying from a supplier in France, LTD, based in Cleveland, Ohio, has arranged for its bank to pay the supplier the cost of the desired material when it has passed customs in the United States. Which of the following terms is this type of bank promise called?

Through the Federal Deposit Insurance Corporation, a deposit in a member bank is currently insured up to $50,000.

The international payments process that moves money between buyers and sellers on different continents is subject to worldwide policy systems.

The Norton County Bank performs such tasks as making monthly bill payments, managing investment portfolios, and managing the estates of deceased persons. What are such services called?

Money frees society from a system of barter. In doing so, money is performing which of the following functions?

Which of the following institutions simplifies financial settlements between buyers and sellers in different countries?

In order to save money on transactional costs, the U.S. Treasury is moving to electronic fund transfers for payments rather than issuing checks.

Which of the following has a fixed term?

Domino Grace is a financial services company. It has started using scientific principles of management to analyze the compensation system for its financial advisors. Under the current system, revenue goals are based on the financial advisors' performances in the previous year. Domino Grace management believes that the financial advisors could generate much more revenue if they were encouraged to offer derivatives, a complex but potentially profitable investment product. Which of the following, if true, would weaken the argument of Domino Grace's management?