Question 1

The insures holders of accounts in savings and loan associations.

Accepted Answer

A)  Savings Association Insurance Fund
B)  Federal Savings Protection Agency
C)  Savings and Loan Assurance Corporation
D)  National Savings Deposit Insurance CooperativeE) A) and B)
F) A) and C)

Question 2

Fortunately, the Troubled Assets Relief Program (TARP) took care of the looming bankruptcy problems of major financial services institutions during 2008-2009, and tax payers were not hit with additional bail-outs.

Accepted Answer

A) True 
 B)False

Question 3

When traveling in other countries, tourists can use their MasterCard or Visa bankcards to obtain foreign currencies at ATMs.

Accepted Answer

A) True 
 B)False

Question 4

Alexander Hamilton persuaded Congress to create a central bank.

Accepted Answer

A) True 
 B)False

Question 5

The community college where Jake works requires all employees to contribute to a pension fund. At this time, he is not too worried about the safety of this contribution because:

Accepted Answer

A)  the pensions fund's investments are always backed by the full faith and credit of the U.S. government.
B)  pension funds are nonbanks so they are not going to take this money and lend it to others.
C)  he is considered a state employee, and as such, he is protected from this fund going bankrupt.
D)  pension funds usually make conservative investments.E) A) and C)
F) A) and B)

Question 6

For banks, the check processing activities:

Accepted Answer

A)  still represent the cheapest way to permit customers use of their funds.
B)  are expensive and time consuming.
C)  are not trustworthy and reliable.
D)  are extremely efficient and have deterred customers from using other ways to access their funds.E) B) and D)
F) None of the above

Question 7

are nonprofit, member-owned financial cooperatives that offer a full variety of banking services such as accepting deposits and making loans.

Accepted Answer

A)  Mutual thrift associations
B)  Credit unions
C)  Commercial banks
D)  Mutual fund companiesE) C) and D)
F) A) and B)

Question 8

Although there are many features about online banking that customers do not care for, they are seldom concerned with the security due to continued assurances by the banking industry.

Accepted Answer

A) True 
 B)False

Question 9

When the U.S. was still a colony of Great Britain, land banks were created to lend money to farmers.

Accepted Answer

A) True 
 B)False

Question 10

Chipper's Golf Resort plans to carry an inventory of golf clubs - irons, drivers, and woods from a German manufacturer. The manufacturer has promised delivery in four weeks, which will be just in time for the beginning of Chipper's golf season at its Chicago course. In order to prudently watch cash flow, you have recommended that Chipper's Resort sign a letter of credit with an international bank asking the bank to disburse payment when the clubs arrive at the Chicago course and after they are inspected.

Accepted Answer

A) True 
 B)False

Question 11

Shana works as an investment specialist for the Teamsters Union Central States Pension Fund. Her job involves deciding how to invest the contributions paid into the fund. Which of the following statements about Shana's job are true?

Accepted Answer

A)  She works for a bank.
B)  She will probably invest most of the pension's funds in safe corporate stocks and other conservative investments such as government securities.
C)  In order to qualify for maximum tax benefits, the funds Shana invests all must be contributed by the companies who employ members of the Teamsters Union, rather than by the union members themselves.
D)  The purpose of the investments Shana is making is to increase the current pay of union members.E) B) and C)
F) None of the above

Question 12

A barter exchange is a system where you input into a system the goods and services that you are willing to trade, and receive trade credit.

Accepted Answer

A) True 
 B)False

Question 13

The Fed has just reduced the reserve requirement from 14% to 12%. Commerce Bank holds $650 million in deposits. It will need to become more conservative with its lending procedures because it now must hold $91 million in reserves.

Accepted Answer

A) True 
 B)False

Question 14

By the time of the Civil War, the U.S. banking system operated:

Accepted Answer

A)  as an efficient model that many other countries copied.
B)  under the control of the first Federal Reserve System.
C)  inefficiently with different banks issuing different types of currencies.
D)  much the same as it does today.E) A) and B)
F) B) and C)

Question 15

Savings and loan associations are sometimes known as:

Accepted Answer

A)  nonbanks.
B)  thrift institutions.
C)  credit unions.
D)  bankers' banks.E) A) and B)
F) All of the above

Question 16

The provides the same results as a check because it withdraws funds from a checking account.

Accepted Answer

A)  credit card
B)  debit card
C)  smart card
D)  cashier's checkE) A) and D)
F) B) and D)

Question 17

Early in our nation's history, people generally accepted the importance of a central bank authority.

Accepted Answer

A) True 
 B)False

Question 18

When the value of the dollar falls, foreign goods become less expensive for American consumers.

Accepted Answer

A) True 
 B)False

Question 19

Prior to the establishment of the Federal Reserve System in 1913, the United States had no experience with a central bank.

Accepted Answer

A) True 
 B)False

Question 20

Kimberly trades some of her homegrown tomatoes to her neighbor, Ron, for some green peppers fresh from Ron's garden. This type of trade represents an example of:

Accepted Answer

A)  barter.
B)  e-commerce.
C)  direct exchange.
D)  tax avoidance.E) A) and B)
F) A) and C)

Exam 20: Money, Financial Institutions, and the Federal Reserve

Although there are many features about online banking that customers do not care for, they are seldom concerned with the security due to continued assurances by the banking industry.

Correct Answer
verified

Early in our nation's history, people generally accepted the importance of a central bank authority.

Correct Answer
verified

The provides the same results as a check because it withdraws funds from a checking account.

Correct Answer
verified

Prior to the establishment of the Federal Reserve System in 1913, the United States had no experience with a central bank.

Correct Answer
verified

Kimberly trades some of her homegrown tomatoes to her neighbor, Ron, for some green peppers fresh from Ron's garden. This type of trade represents an example of:

Correct Answer
verified

By the time of the Civil War, the U.S. banking system operated:

Correct Answer
verified

A barter exchange is a system where you input into a system the goods and services that you are willing to trade, and receive trade credit.

Correct Answer
verified

The Fed has just reduced the reserve requirement from 14% to 12%. Commerce Bank holds $650 million in deposits. It will need to become more conservative with its lending procedures because it now must hold $91 million in reserves.

Correct Answer
verified

Alexander Hamilton persuaded Congress to create a central bank.

Correct Answer
verified

When traveling in other countries, tourists can use their MasterCard or Visa bankcards to obtain foreign currencies at ATMs.

Correct Answer
verified

When the U.S. was still a colony of Great Britain, land banks were created to lend money to farmers.

Correct Answer
verified

Correct Answer
verified

When the value of the dollar falls, foreign goods become less expensive for American consumers.

Correct Answer
verified

Savings and loan associations are sometimes known as:

Correct Answer
verified

For banks, the check processing activities:

Correct Answer
verified

are nonprofit, member-owned financial cooperatives that offer a full variety of banking services such as accepting deposits and making loans.

Correct Answer
verified

Shana works as an investment specialist for the Teamsters Union Central States Pension Fund. Her job involves deciding how to invest the contributions paid into the fund. Which of the following statements about Shana's job are true?

Correct Answer
verified

Fortunately, the Troubled Assets Relief Program (TARP) took care of the looming bankruptcy problems of major financial services institutions during 2008-2009, and tax payers were not hit with additional bail-outs.

Correct Answer
verified

The community college where Jake works requires all employees to contribute to a pension fund. At this time, he is not too worried about the safety of this contribution because:

Correct Answer
verified

The insures holders of accounts in savings and loan associations.

Correct Answer
verified

Exam 20: Money, Financial Institutions, and the Federal Reserve

Although there are many features about online banking that customers do not care for, they are seldom concerned with the security due to continued assurances by the banking industry.

Correct AnswerverifiedShow Answer

Early in our nation's history, people generally accepted the importance of a central bank authority.

Correct AnswerverifiedShow Answer

The provides the same results as a check because it withdraws funds from a checking account.

Correct AnswerverifiedShow Answer

Prior to the establishment of the Federal Reserve System in 1913, the United States had no experience with a central bank.

Correct AnswerverifiedShow Answer

Kimberly trades some of her homegrown tomatoes to her neighbor, Ron, for some green peppers fresh from Ron's garden. This type of trade represents an example of:

Correct AnswerverifiedShow Answer

By the time of the Civil War, the U.S. banking system operated:

Correct AnswerverifiedShow Answer

A barter exchange is a system where you input into a system the goods and services that you are willing to trade, and receive trade credit.

Correct AnswerverifiedShow Answer

The Fed has just reduced the reserve requirement from 14% to 12%. Commerce Bank holds $650 million in deposits. It will need to become more conservative with its lending procedures because it now must hold $91 million in reserves.

Correct AnswerverifiedShow Answer

Alexander Hamilton persuaded Congress to create a central bank.

Correct AnswerverifiedShow Answer

When traveling in other countries, tourists can use their MasterCard or Visa bankcards to obtain foreign currencies at ATMs.

Correct AnswerverifiedShow Answer

When the U.S. was still a colony of Great Britain, land banks were created to lend money to farmers.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

When the value of the dollar falls, foreign goods become less expensive for American consumers.

Correct AnswerverifiedShow Answer

Savings and loan associations are sometimes known as:

Correct AnswerverifiedShow Answer

For banks, the check processing activities:

Correct AnswerverifiedShow Answer

are nonprofit, member-owned financial cooperatives that offer a full variety of banking services such as accepting deposits and making loans.

Correct AnswerverifiedShow Answer

Shana works as an investment specialist for the Teamsters Union Central States Pension Fund. Her job involves deciding how to invest the contributions paid into the fund. Which of the following statements about Shana's job are true?

Correct AnswerverifiedShow Answer

Fortunately, the Troubled Assets Relief Program (TARP) took care of the looming bankruptcy problems of major financial services institutions during 2008-2009, and tax payers were not hit with additional bail-outs.

Correct AnswerverifiedShow Answer

The community college where Jake works requires all employees to contribute to a pension fund. At this time, he is not too worried about the safety of this contribution because:

Correct AnswerverifiedShow Answer

The insures holders of accounts in savings and loan associations.

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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