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WorksheetsFinancial Markets & Systems
Total questions: 15
Worksheet time: 8mins
Which of these statements about money is true?
Money is easy to handle
Money is easily divided into smaller parts
The value of the money remains stable over the course of time
All of these are true
Money is a medium of exchange. Which of these statements illustrates this fact?
Money allows us to easily buy and sell goods. Without it, we’d all have to barter
Money gives us the opportunity to save and make purchases at a later date
Money allows us to measure the value of a good against a meaningful standard
A.None of these
Money is a store of value. Which of these statements illustrates this fact?
Money allows us to easily buy and sell goods. Without it, we’d all have to barter
Money gives us the opportunity to save and make purchases at a later date
Money allows us to measure the value of a good against a meaningful standard
A.None of these
Money is a measure of worth. Which of these statements illustrates this fact?
Money allows us to easily buy and sell goods. Without it, we’d all have to barter
Money gives us the opportunity to save and make purchases at a later date
Money allows us to measure the value of a good against a meaningful standard
None of these
Our most liquid forms of money are measured as:
M-1
M-2
M-3
None of these
An order to a bank to pay a given sum to a “payee” is known as a:
Time deposit
Mutual fund
Check (Cheque)
All of these
A certificate of deposit (CD) has a fixed term and is usually held to maturity. A CD is also known as a(n):
Checking account
Time deposit
Mutual fund
Insurance
A company that accepts deposits, makes loans, pays interest to depositors, and pays dividends to its owners.
Pension fund
Savings & Loan Association
Commercial banks
Savings institution
The interest rate that a bank offers to its most creditworthy customers is known as:
Fed funds rate
Prime rate
Book value
Dividend
The state of Iowa manages a pool of funds that will provide retirement benefits for state employees.
The state of Iowa is managing a pension fund
The state of Iowa is managing a credit union
The state of Iowa is managing an S&L
None of these are true
Many workers set up their own tax-deferred pension funds, often with the support of an employer.
These plans are known as S&L’s
These plans are known as EFT’s
These plans are known as IRA’s
All of these are true
Which of these groups helps to ensure confidence in US banking system?
Federal Deposit Insurance Corporation (FDIC)
Federal Reserve System (The Fed)
Federal Open Market Committee
All of these
This group helps to shape US monetary policies through management of the money supply:
Savings & Loans (S&L’s)
Federal Open Market Committee
Credit Unions
Wall Street
The Fed performs many functions. Which of these is a function of the Fed?
The Fed lends money to the government to finance the national deficit.
The Fed lends money to member banks.
The Fed assists in the check (cheque) clearing process
All of these are functions of the Fed
The IMF is a United Nations agency. What purpose does the IMF have:
Promoting stability of exchange rates
Providing short-term loans to member countries
Encourage member countries to cooperate on international monetary issues
All of these are part of IMF’s purpose
