Unit 4 5 &6

Question 1

Barter

Answer 1

The exchange of one good or service for another

Question 2

Reserve

Answer 2

Deposits kept back not available to make loans from them

Question 3

Prime Rate

Answer 3

The amount banks charge their best loan customers

Question 4

Fiat Money

Answer 4

Money that has value because the government says it has value

Question 5

Money

Answer 5

Anything of value that is accepted in return for goods or services

Question 6

Interest Rate

Answer 6

The stated cost to borrow money

Question 7

Store of Value means it can be saved or stored to use at a future date

Answer 7

T

Question 8

Banks must keep 20% of deposits in reserves

Answer 8

F

Question 9

During the era of free banking, state banks conducted all bank functions

Answer 9

T

Question 10

If more people want loans, interest rates will decrease

Answer 10

F

Question 11

A customer’s deposit of $1,000 = $900 Excess Reserves

Answer 11

T

Question 12

The prime rate is the stated cost to borrow money

Answer 12

F

Question 13

Money that is backed by gold is an example of representative money

Answer 13

T

Question 14

Money is not durable

Answer 14

F

Question 15

US citizens today can exchange paper currency for gold

Answer 15

F

Question 16

Commodity money is rarely used today

Answer 16

T

Question 17

How many measures does the Federal Reserve us to calculate the money supply?

Answer 17

4

Question 18

Excess Reserves are used for

Answer 18

Deposits

Question 19

Required Reserves are keep at the

Answer 19

Federal Reserve and Vaults

Question 20

UNIT 5

Answer 20

break! u deserve it (KEEP GREEN)

Question 21

Board of Govenors

Answer 21

Governing body of the Federal Reserve System`

Question 22

Federal Reserve System

Answer 22

12 Regional Central Banks

Question 23

Bank Panic

Answer 23

When there is a widespread worry that banks do not have enough money to cover customers’s demands for withdrawals

Question 24

Bank Run

Answer 24

Depositors fear their money is not safe in the bank

Question 25

The first US central bank was chartered in 1791

Answer 25

T

Question 26

Congress chartered the second Bank of the United States in 1811

Answer 26

F

Question 27

The Federal Reserve is divided into districts of equal size

Answer 27

F

Question 28

The Board of Governors reports to the US president

Answer 28

F

Question 29

The interest banks pay to borrow money from a Federal Reserve Bank is the discount rate

Answer 29

T

Question 30

Federal Reserve Bank has 14 district banks

Answer 30

F

Question 31

Presently, the United States has no central bank

Answer 31

T

Question 32

The structure of the Fed is meant to safeguard against corruption

Answer 32

T

Question 33

All members of the Board of Governors are members of the Federal Open Market Committee

Answer 33

T

Question 34

The Federal Open Market Committee is not able to have any power to change anything

Answer 34

F

Question 35

Who advocated and developed the first Bank of the United States?

Answer 35

Alexander Hamilton

Question 36

The Board of Governors are appointed by the

Answer 36

Congress

Question 37

The Federal Reserve System comprises how many regional central banks?

Answer 37

12

Question 38

Which of the following is responsible for making monetary policy?

Answer 38

Federal reserve Banks

Question 39

Which of the following is not a tool used to conduct monetary policy?

Answer 39

Prime Rate

Question 40

If a Bank’s reserve requirement increase and they are required to keep more reserves, what happens to the interest rate they charge to customers for loans?

Answer 40

The interest will increase

Question 41

When did the era of free banking occur?

Answer 41

1837-1863

Question 42

What interest rate does the bank charge their best customers?

Answer 42

Prime Rate

Question 43

When was the Federal Reserve System established?

Answer 43

1913

Question 44

UNIT 6

Answer 44

Take a break you deserve it (keep at green)

Question 45

Glass-Steagall Act

Answer 45

Established the FDIC

Question 46

Truth in Lending Act

Answer 46

Requires every lender to provide borrower with information about cost of credit

Question 47

Protects consumers from unfair and deceptive credit card practices

Answer 47

Credit Card Act

Question 48

Equal Credit Opportunity Act

Answer 48

Makes it illegal for lenders to use factors such as gender and race when determining whether someone should get a loan

Question 49

Fair Credit Reporting Act

Answer 49

Protects consumer credit information

Question 50

Gramm-Leach-Bliley Act

Answer 50

Allowed banks to engage in almost any financial activity

Question 51

The Truth in Lending Act allows consumers to be aware of the true cost of the loan

Answer 51

T

Question 52

Finance charges are the total dollar amount of interest plus anyt fees paid on the loan

Answer 52

T

Question 53

The APR includes all fees and costs

Answer 53

T

Question 54

The Credit CARD Act can not protect consumers from all unfair credit card practices

Answer 54

F

Question 55

Crop failures in the 1920s were one of the contributing factor of bank failures

Answer 55

T

Question 56

During the Great Depression, there were lots of bank failures

Answer 56

F

Question 57

An interest rate ceiling is the lowest rate a bank can pay on certain deposits

Answer 57

T

Question 58

A loan can be rejected based on marital status

Answer 58

F

Question 59

A bank run occurs when a small amount of depositors withdraw all of their money from the bank at the same time

Answer 59

F

Question 60

The Consumer Credit Protection Act is also known as which of the following?

Answer 60

Truth In Lending Act

Question 61

Which Act deals with regulation of banks

Answer 61

Which Act deals with regulation of banks