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Money, Banking and Financial Markets Flashcards | StudBud
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Money, Banking and Financial Markets
Money, Banking and Financial Markets
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An #economics review for Unit test covering #money #banking and #financialmarkets
Flashcards
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Questions
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1
An institution that helps channel funds from savers to borrowers:
bear market
bull market
money market
financial intermediary
2
A network that allows the transfer of money between savers and borrowers:
money market
inflation-based bond
bull market
financial system
3
Savers and borrowers are linked through financial institutions when:
financial institutions offer the same exchange rate to each
savers deposit money that is used to lend money to borrowers
both savers and borrowers invest in the same markets
borrowers take money from financial institutions to invest
4
A steady drop or stagnation in the stock market over a period of time:
commodity market
money market
bear market
bull market
5
Which of the following best describes the Federalists' belief about banking?
a centralized banking system was necessary
the nation's banks should be controlled by state governments
the banking system already in existence was sufficient
an international banking system was best for the country
6
A type of loan used to buy real estate is called a:
certificate of deposit
greenback
treasury bond
mortgage
7
Which lender of a loan to buy a new computer is likely to cost you the most $$ in the long run?
credit union
finance company
savings and loan association
savings bank
8
Objects that have value because a government decrees they are acceptable means to pay debts
fiat money
commodity money
gold standard
liquidity
9
The main purpose of the FDIC is to make sure that:
commercial and investment banks do not fail
banks charge a fair amount of interest on loans
the government has enough gold to cover its expenses
customers do not lose their money if a bank fails
10
Which of the following is the biggest disadvantage of using shells instead of coins as money?
durability
portability
value
uniformity
11
Which of the following is an example of money as a unit of account?
lend your best friend $25.00 to buy a guitar
purchase a remote-controlled toy on sale for $8.99
open a savings account at a bank that pays high interest
compare camera prices at different stores before buying one
12
The ability to be used as, or converted into, cash:
debit card
bartering
liquidity
savings bond
13
The market in which money is lent for periods of one year or less is called:
money market
bear market
bull market
commodity market
14
Monetary system in which paper money and coins have the value of certain amounts of gold
greenback
silver standard
gold standard
financial market
15
A steady rise in the stock market over a period of time
bear market
bull market
commodity market
money market
16
When you pay for something with a debit card, you are using the electronic form of a payment by
money order
cashier's check
personal check
credit card
17
You have $100 to invest and will not need the the money for 6 months-the best investment is a:
treasury bond
savings account
junk bond
certificate of deposit
18
In June Hope wins $1000 and will use the money for her tuition in Sept--she puts it in savings:
her priority is to receive the maximum amount of interest
her priority is a liquid investment
her priority is to take a risk hoping for a high return
her priority is to make a safe investment for the long term
19
The annual rate of return on a bond if the bond is held to maturity:
discount from par
investment
yield
capital loss
20
Coins and paper bills used as money:
Commodity money
gold standard
currency
greenback
21
Savings bonds differ from most other bonds in that:
they are issued in fairly large denominations
they usually provide a higher rate of return
the buyer does not receive periodic interest payments
they are held for a shorter period of time
22
You are a financial advisor whose client wants stock that pays a regular dividend-he should buy
income stock
common stock
preferred stock
growth stock
23
Contracts to trade stock at a specific price and time in the future
yields
interest
options
investments
24
Anything that is used to determine value during the exchange of goods and services
barter system
discount from par
medium of exchange
maturity rate
25
George just inherited $1000 and would like to invest in stock market-you suggest that he:
call the NYSE who can direct him to the OTC market
contact Nasdaq who will assign a stockbroker to him
reserve a seat at the New York Stock Exchange
contact brokerage firm who will link him with a stockbroker
