Banking System Learning Objectives Quiz

What is one of the learning objectives related to starting a new bank?

• Discuss how to close a bank.

• Discuss what needs to be done to get a new bank up and running.

• Describe how to reduce the money supply.

• Explain how to invest in stocks.

What is one of the learning objectives related to the banking system?

• Describe how the banking system can expand the money supply.

• Explain how to decrease interest rates.

• Discuss how to manage personal finances.

• Describe how to start a credit union.

Which term refers to the total value of assets minus liabilities?

• Asset

• Liability

• Net Worth

• Balance Sheet

What is the term for resources owned by a company that have economic value?

• Liability

• Asset

• Net Worth

• Money Multiplier

Which term describes the obligations or debts that a company owes?

• Asset

• Net Worth

• Liability

• Excess Reserves

What is a financial statement that summarizes a company's assets, liabilities, and shareholders' equity?

• Balance Sheet

• Money Multiplier

• Required Reserves

• Net Worth

Which term refers to the fraction of deposits that a bank must hold as reserves?

• Excess Reserves

• Required Reserve Ratio

• Money Multiplier

• Asset

What are the reserves held by a bank that exceed the required minimum?

• Required Reserves

• Excess Reserves

• Asset

• Liability

Which term is used to describe the potential amount of money that the banking system generates with each dollar of reserves?

• Money Multiplier

• Net Worth

• Balance Sheet

• Required Reserves

What is one of the initial steps required to operate a bank?

• Opening a savings account

• Getting a charter

• Hiring employees

• Setting interest rates