Money & Banking / Government Finances Quiz

_______ includes both coins and paper money.

• bank notes

• currency

• checking accounts

• federal reserve notes

An institution owned and operated by its members that provides low-interest loans to its members is called a ________.

• credit union

• commercial bank

• state bank

• board of governors

The interest rate that the Federal Reserve charges on loans to its member banks is the ________.

• dividend

• money supply

• discount rate

• medium of exchange

An account in which deposited money can be withdrawn at any time by writing a check or using a debit card is called a ________.

• savings account

• checking account

• discount rate

• certificate of deposit

How do banks and other financial institutions that lend money make a profit?

• by charging interest

• by borrowing money

• by printing currency

• through promissory notes

What is the main purpose of the Federal Deposit Insurance Corporation?

• buy and sell for investors

• approve changes in the interest rate

• insure checking and savings deposits

• make decisions that affect ht economy as a whole

The central bank of the United States is the __________.

• Board of Governors

• Federal Reserve System

• Federal Open Market Committee

• Federal Deposit Insurance Corporation

The Fed requires banks to keep a _______, or a percentage of their money.

• reserve

• discount rate

• interest rate

• growth rate

In what kind of account do savers have the most control over their money?

• savings accounts

• certificates of deposit

• open market operation

• legal tender

A deposit account that requires savers to deposit their money for a certain period of time is a ______.

• savings account

• certificate of deposit (CD)

• open market operation

• legal tender