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WorksheetsReview
Total questions: 38
Worksheet time: 19mins
Which of the following statements about banks is NOT true?
Banks distribute the medium of exchange
All banks are organized as corporationds
Banks may be chartered by either federal or state governments
Banks are essential to maintaing the economy
About 60 percent of the deposit and loan business in the United States is done by ... ?
retail banks
credit unions
central banks
commercial banks
One result of competition amoung banks is that:
more services are available to consumers
more banks exist now that a decade ago
the trend towards mergers in the banking industry has slowed
All of the above
Banks move money between:
other banks
banks and individual customers
governments
All of the above
In the U.S., banks and ... work together to form the banking system.
consumers
industry
savings and loans
the government
The difference between what a bank pays in interest and what it recieves in interest is called ...
spread
profit
loss
gross interest income
Which of the folloeing is NOT a source of income for a bank?
fees for services
the interest earned by depositors
investments
loan income
What was the most common medium of exchange in colonial America?
paper money
coins
checks
pieces of gold and silver
The largest denomination of paper currency in the US today is the ...
ten thousand dollar not
on thousand dollar note
five hundred dollar note
one hundred dollar note
The Civil War in America brought monetary issues to a crisis point because:
state banks began to lose influence
rampant inflation threatened the entire economic system
the counterfeiting of money became widespread
All of the above
A bank is a non-for-profit organization.
True
False
Credit cards issued by banks is a form of lending.
True
False
The first Bank of the US was a government institution.
True
False
The flow of money has a direct effect on how the economy performs.
True
False
Banks can loan customers the money it has on deposit minus the reserve requirement.
True
False
Basic checking accounts pay interest on the balance deposited in the account.
True
False
Compound interest uses the same principal amount every time it is calculated
True
False
Which of the following is NOT a function of the Federal Reserve?
levying a high tax on state bank notes
conducting bank examinations
handling the government's central banking function
determining whether banks can borrow money from the Federal Reserve
The Emergency Banking Act of 1933
expanded the monetary controls of the Federal Reserve
established a bank holiday that closed all banks in the country for one month
separated commercial banking from investment banking to protect assets
founded the system of central banking still use in the US
The Federal Deposit Insurance Corporation (FDIC) currently guarantees bankk deposits against bank failures up to ______.
$10,000
$50,000
$250,000
$1,000,000
To combat inflation in the 1970s and 1980s, the Federal Reserve _______.
loosened the money supply
allowed interest rates to rise
allowed interest rates to fall
enacted wage and price controls
The official currency of the U.S. can properly be classified as ______ money.
fiat
conventional
commodity
product
Which of the following is NOT considered a factor in money creation?
banks' use of money
the demand for money
the printing of currency by the bureau of engraving and printing
the Federal Reserves's supply and control of money
Which of the following would be considered a secondary reserve for a bank?
cash the bank has on hand
securities the bank has purchased from the Federal government
deposits that may be due from other banks
the reserve percentage required by the Federal Reserve System
Money on deposit, minus ..., can be loaned by banks to customers.
excess reserves
cash on hand
primary reseerves
the reserve requirement
If banks must hold more money in reserve, ...
the money supply will expand
there is more money available to lend
there is less money available to lend
none of the above
The interest rate the Federal reserve charges for loans to member banks is called the ...
prime rate
discounte rate
market rate
treasury rate
Which of the following is NOT an element of negotiablity?
must contain a signature
must be written
must be payable on demand
must state the amount to be paid
The term 'negotiation', as it applies to a negotiable instruments, applies to:
the abilty of the holder to obtain its value
the conditions of the insturment
the terms of the instrument
all of the above
Which of the following endorsements is the least secure?
qualified endorsement
full endorsement
restrictive endorsement
blank endorsement
Which of the following directly transfers money from a persons's account to the account of a retailer?
charge card
credit card
debit card
cash card
The largest cause of loss to banks is ...
fraud
employee theft
embezzlement
robbery
The Real Estate Settlement Procedures Act was enacted:
to protect consumers against predatory lending
to protect consumers form hidden costs at closing time
to promote the informed use of consumer credit
to require banks to document their lending decisions
Which of the following components of a fixed rate mortgage do not change?
terms
interest rate
payments on the loan
All of the above
A reverse mortgage is repaid:
by the bank to the borrower
over the term of the loan, typically 30 years
when the borrower dies
in one single large payment at a specified point
The Federal Reserve influences the federal funds rate by:
buying and selling government securities
adjusting the reserve requirement
lowering the discount rate
All of the above
Which of the following governing documents list interest rates in effect at the time for various types of accounts?
deposit rate schedules
account rules
fee schedules
disclosure statements
A check that is dated six months or more before it is presented for payment or deposit is called a(n)...
bounced check
post-dated check
stale check
overdraft check
