Money - Financial and Risk Management

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

• It allows people to measure the relative value of goods and services.

• It is light and easy to handle.

• It neither dies nor spoils and, if it wears out, it can be replaced

• Units of money can be matched with the value of goods.

A(n) ________ is a federal- or state-chartered financial institution accepting deposits that it uses to make loans and earn profits.

• Credit union

• Mutual Savings Bank

• Savings and loan association

• Commercial bank

A(n) ________ is a nondeposit financial institution that pools funds from its members to provide retirement income for its members.

• Finance company

• Insurance company

• Credit Union

• Pension fund

The nation's central bank is

• Chase Manhattan

• Citicorp

• NationsBank

• The Federal Reserve

The Federal Reserve System of the United States is responsible for the conduct of U.S. ________ policy.

• Fiscal

• Monetary

• Bank Control

• Taxation

A government may ________ its currency to correct its balance-of-payments conditions.

• Regulate

• Recenter

• Devalue

• Reconvert

________ are stocks and bonds representing secured or asset-based claims by investors against issuers.

• Commodities

• Securities

• Private Placements

• IPOs

________ are companies that pool investments from individuals and organizations to purchase a portfolio of stocks, bonds, and other securities.

• Stock companies

• Stock exchangers

• Brokers

• Mutual funds

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

• Medium of exchange

• Unit of account

• Store of value

• Deternubatuib factor

In dealing with the U.S. government, the two key responsibilities of the Fed are lending money to the government and

• Controlling the nation's paper currency

• Reviewing congresstional spending.

• Developing the federal budget

• Producing goverment payroll checks