Banking and Financial Intermediaries Quiz

What is a U.S. Treasury bill (T-bill)?

• A long-term debt instrument issued by the federal government

• A short-term debt instrument issued by the federal government

• A corporate bond

• A municipal bond

What is the relationship between interest rates and the length of time to maturity for debt in each risk class called?

• Yield curve

• Term structure of interest rates

• Financial intermediary

• Direct investment

What are certificates of deposits (CDs)?

• Payable on demand

• Interest-bearing accounts

• Issued for a fixed term

• Negotiable instruments

What are the two types of Banking Thrifts mentioned in the slides?

• Commercial banks and credit unions

• Mutual savings banks and S&Ls

• Investment banks and savings banks

• Credit unions and S&Ls

What is the purpose of the reserve requirement for banks?

• To increase bank profits

• To control monetary policy

• To ensure customer satisfaction

• To promote international trade

What is the purpose of a repurchase agreement (repo)?

• To invest in real estate

• To serve as a short-term security

• To provide insurance coverage

• To offer immediate cash

What is one of the services offered by insurance agents, stockbrokers, and bankers?

• Real estate management

• Financial products

• Retail sales

• Manufacturing

Which act is associated with the regulation of depositary institutions?

• Securities Exchange Act

• Monetary Control Act

• Financial Services Act

• Banking Reform Act

What is the purpose of the BankFind tool?

• To compare bank fees

• To find insured banks

• To calculate interest rates

• To evaluate loan options

What are the implications of high-growth rates for policy makers?

• Increased inflation

• Decreased interest rates

• Stable economy

• Reduced unemployment