Anonymous asked in Social ScienceEconomics · 10 years ago

Economics Help!!!!!!!!!! Please(:?

56. The basic policy-making body in the U.S. banking system is the:

A. Federal Open Market Committee (FOMC).

B. Board of Governors of the Federal Reserve.

C. Federal Monetary Authority.

D. Council of Economic Advisers.

57. The Federal Reserve System was created in:

A. 1926.

B. 1946.

C. 1895.

D. 1913.

58. The Federal Open Market Committee (FOMC) is made up of:

A. the chair of the Board of Governors along with the 12 presidents of the Federal Reserve Banks.

B. the seven members of the Board of Governors along with the president of the New York Federal Reserve Bank.

C. the seven members of the Board of Governors of the Federal Reserve System along with the three members of the Council of Economic Advisers.

D. the seven member of the Board of Governors of the Federal Reserve System along with the president of the New York Federal Reserve Bank and four other Federal Reserve Banks presidents on a rotating basis.

59. The Federal Reserve System:

A. has the same status as the Supreme Court.

B. is basically an independent agency.

C. has the status of a Congressional committee.

D. is an agency of the executive branch of the Federal government.

60. Commercial banks and thrift institutions:

A. differ because thrifts cannot make loans.

B. differ because thrifts cannot offer checkable deposits.

C. have become less similar in recent years.

D. have become increasingly similar in recent years.

61. The Federal Deposit Insurance Corporation (FDIC) insures deposits up to $100,000 in:

A. mutual fund companies and pension fund companies.

B. thrifts and insurance companies.

C. commercial banks and thrifts.

D. securities firms and insurance companies.

62. Which of the following is a true statement?

A. The bank and thrift share of total financial assets has increased dramatically since 1980.

B. The vast bulk of investment in the major nations is financed, not from internal saving, but from funds from abroad.

C. The world's financial markets have become increasingly integrated.

D. International stock and bond funds cannot be sold in the United States.

63. The Financial Services Modernization Act of 1999:

A. set limits on the fees that banks can charge for automatic teller machine (ATM) withdrawals.

B. established a new dollar coin that will replace the dollar bill in 2008.

C. permitted banks, thrifts, pension companies, and securities firms to merge and to sell each other's products.

D. outlawed "payday loans" that are advanced against forthcoming payroll checks.

64. Electronic money is:

A. closely associated with smart cards.

B. issued in real terms so that it is immune from the effects of inflation.

C. the money dispensed by automatic teller machines (ATMs).

D. also called share-draft money.

65. (Consider This) Credit card balances are:

A. a component of M1.

B. a component of M2 but not of M1.

C. a component of M1 but not of M2.

D. not a component of M1 or M2.

66. (Last Word) The use of U.S. dollars in foreign countries:

A. is illegal under international law.

B. actually benefits the United States because each dollar costs less than a dollar to produce.

C. varies directly (positively) with U.S. interest rates.

D. is less in volume than the use of foreign currencies in the United States.

67. Most modern banking systems are based on:

A. money of intrinsic value.

B. commodity money.

C. 100 percent reserves.

D. fractional reserves.

68. A fractional reserve banking system:

A. is susceptible to bank panics.

B. prevents money creation through the lending process.

C. only tends to exist in developing economies.

D. prevents the Federal Reserve from influencing the money supply.

69. Bank panics:

A. occur frequently in fractional reserve banking systems.

B. are a risk of fractional reserve banking, but are unlikely when banks are highly regulated and lend prudently.

C. cannot occur in a fractional reserve banking system.

D. occur more frequently when the monetary system is backed by gold.

70. A commercial bank's reserves are:

A. liabilities to both the commercial bank and the Federal Reserve Bank holding them.

B. liabilities to the commercial bank and assets to the Federal Reserve Bank holding them.

C. assets to both the commercial bank and the Federal Reserve Bank holding them.

D. assets to the commercial bank and liabilities to the Federal Reserve Bank holding them.

71. Excess reserves refer to the:

A. difference between a bank's vault cash and its reserves deposited at the Federal Reserve Bank.

B. minimum amount of actual reserves a bank must keep on hand to back up its customers deposits.

C. difference between actual reserves and loans.

D. difference between actual reserves and required reserves.

72. Assume that Smith deposits $600 in currency into her checking account in the XYZ Bank. Later that same day Jones negotiates a loan for $1,200 at the same bank. In what direct

2 Answers

  • 10 years ago
    Best Answer
  • 3 years ago

    Do you incredibly comprehend furnish area economics? this is not any longer only approximately reducing taxes on enterprise vendors; it makes a speciality of the two regulations that help develop capital for brand spanking new and increasing agencies and on the charges of production. The "ordinary information" isn't constantly ultimate. so which you may fairly government bypass to each and all of the subject and rate and administrative value to tax a enterprise and then spend money with agencies as a substitute of only letting agencies save their very own no longer basic-earned money first of all? that would not make a lot sense, the two.

Still have questions? Get your answers by asking now.