1. Objects that have value in themselves as well as their value as a means of exchange are called..?
a. currency b. custom c. commodity money d. simple money
2. why are funds in checking accounts called demand deposits?
a. they will e paid without a check being drawn if necessary. b.they are available when the depositor writes a check for them. c. they are kept without interest by the bank. d. they can be paid to anyone who writes and presents a check for them.
3. what is a credit union?
a. a cooperative lending institution for a particular group. b. a bank that specialties in retirement savings account. c. a modified type of savings and loan that makes loans for housing. d. a bank that takes deposits but does not make loans.
4. as part of the nation's recovery from the great depression of the 1930s, the banking system was reformed in which of the following ways?
a. the federal reserve banks were closed. b. the banking system was taken off the gold standard. c. the government paid off loans for large corporations. d. banks were deregulated by the government.
5. the savings and loan crisis in the late twentieth century was caused at least partially by which of the following?
a. lack of checking accounts and adequate business loans. b. inadequate money supply and lack of federal coverage of savings and loans banks. c. high interest rates, bad loans, and fraud. d. overly strict regulation, low interest rates, and lack of consumer confidence
6. the difference between representative money and fiat money is that?
a. representative money is worth more per dollar that fiat money, which is actually worthless. b. fiat money is counted in coins representative money is counted in paper dollars. c. fiat money is more traditional than representative money, which is a newer concept. d. representatives money can be converted into silver or gold; fiat money can not.
7. money that can be easily divided into smaller units of value has the characteristics of?
a. durability b. divisibility c. exchange d. denominations
8. during the free banking era between 1837 and 1863 banking in the united states was dominated by which of the following?
a. small independent banks with no charters. b. state charter banks. c. national bank of the united states. d. savings and loan banks.
9. two units of the same type of money must be the same in terms of what they will buy, which is the principle of
a. uniformity. b. pricing c. functionality d. value
10. How does a bank make most of its profit on its business?
a. by receiving fees from the government for handling federal and state accounts. b. by collecting fees on safety deposit boxes, traveler's checks, and certified checks. c. by paying out less in interests on deposits than it earns in interest on loans. d. by collecting fees on credit card purchases.
a. currency b. custom c. commodity money d. simple money
2. why are funds in checking accounts called demand deposits?
a. they will e paid without a check being drawn if necessary. b.they are available when the depositor writes a check for them. c. they are kept without interest by the bank. d. they can be paid to anyone who writes and presents a check for them.
3. what is a credit union?
a. a cooperative lending institution for a particular group. b. a bank that specialties in retirement savings account. c. a modified type of savings and loan that makes loans for housing. d. a bank that takes deposits but does not make loans.
4. as part of the nation's recovery from the great depression of the 1930s, the banking system was reformed in which of the following ways?
a. the federal reserve banks were closed. b. the banking system was taken off the gold standard. c. the government paid off loans for large corporations. d. banks were deregulated by the government.
5. the savings and loan crisis in the late twentieth century was caused at least partially by which of the following?
a. lack of checking accounts and adequate business loans. b. inadequate money supply and lack of federal coverage of savings and loans banks. c. high interest rates, bad loans, and fraud. d. overly strict regulation, low interest rates, and lack of consumer confidence
6. the difference between representative money and fiat money is that?
a. representative money is worth more per dollar that fiat money, which is actually worthless. b. fiat money is counted in coins representative money is counted in paper dollars. c. fiat money is more traditional than representative money, which is a newer concept. d. representatives money can be converted into silver or gold; fiat money can not.
7. money that can be easily divided into smaller units of value has the characteristics of?
a. durability b. divisibility c. exchange d. denominations
8. during the free banking era between 1837 and 1863 banking in the united states was dominated by which of the following?
a. small independent banks with no charters. b. state charter banks. c. national bank of the united states. d. savings and loan banks.
9. two units of the same type of money must be the same in terms of what they will buy, which is the principle of
a. uniformity. b. pricing c. functionality d. value
10. How does a bank make most of its profit on its business?
a. by receiving fees from the government for handling federal and state accounts. b. by collecting fees on safety deposit boxes, traveler's checks, and certified checks. c. by paying out less in interests on deposits than it earns in interest on loans. d. by collecting fees on credit card purchases.