Ch 10 Money & Banking Quiz

A system in which the basic unit of currency is equivalent to, and can be exchanged for, a specific amount of gold.

• Central bank

• Certificates of deposit (CDs)

• Gold standard

• Reserve requirement

A bank that can lend to other banks in times of need, or a "bankers' bank."

• Central bank

• Federal Reserve System (Fed)

• National bank

• Corporation

The United States government institution that provides deposit insurance on the depositor’s account.

• Central bank

• Federal Deposit Insurance Corporation (FDIC)

• Corporation

• Stock

Formula used to compute the amount of a depository institution’s required reserves.

• Central bank

• Reserve requirement

• Corporation

• Stock

You can easily carry money in a pocket or purse. This reflects what characteristic of money?

• legal tender

• limited supply

• durability

• portability

Most banks are established

• as corporations.

• by local governments.

• to be credit unions.

• to fulfill reserve requirements.