week 3 math
ellijah089
week3.docxuestion 2
As of 2019, the Chairman of the Federal Reserve is ________________________.
|
|
|
Jerome Powell |
|
|
|
Alan Greenspan |
|
|
|
Ben Bernanke |
|
|
|
Janet Yellen |
uestion 3
The budget-making process rests with the
|
|
|
Congress. |
|
|
|
U.S. Treasury. |
|
|
|
President’s Council of Economic Advisors. |
|
|
|
U.S. Treasury in cooperation with the Fed. |
uestion 4
This is the study of how individuals prepare for financial emergencies, protect against premature death and property losses, and accumulate wealth.
|
|
|
Corporate finance |
|
|
|
Business finance |
|
|
|
Entrepreneurial finance |
|
|
|
Personal finance |
|
|
|
None of the above |
uestion 5
The members of the Fed Board of Governors are
|
|
|
elected by the member banks. |
|
|
|
appointed by the President of the United States with the advice and consent of the Senate. |
|
|
|
appointed by the Secretary of the Treasury. |
|
|
|
appointed by each of the Federal Reserve banks. |
uestion 6
Involves conducting financial analysis and valuation of new securities being issued.
|
|
|
Stockbroker |
|
|
|
Security analyst |
|
|
|
Investment banking analyst |
|
|
|
Financial planner assistant |
uestion 7
Vault cash and deposits held at Federal Reserve Banks.
|
|
|
Excess reserves |
|
|
|
Required reserves ratio |
|
|
|
Fractional reserve system |
|
|
|
Bank reserves |
uestion 8
Which of the following is not a responsibility of the Board of Governors?
|
|
|
Sets reserve requirements |
|
|
|
Supervises and regulates member banks |
|
|
|
Proposes discount rates |
|
|
|
Oversees Federal Reserve Banks |
uestion 9
The Class C directors of each Federal Reserve Bank are
|
|
|
appointed by the Board of Governors of the Federal Reserve System. |
|
|
|
elected by the member banks. |
|
|
|
chosen by the Board of Governors and by the member banks. |
|
|
|
appointed by the President of the United States with the advice and consent of the Senate. |
uestion 10
Involves conducting research on investment opportunities for a bank trust department.
|
|
|
Loan analyst |
|
|
|
Bank teller |
|
|
|
Investments research analyst |
|
|
|
Bank manager |
uestion 11
An economy’s _____________________ is the interaction of policy makers, a monetary system, financial institutions, and financial markets to expedite the flow of financial capital from savings into investment:
|
|
|
banking system |
|
|
|
stock market |
|
|
|
capital market |
|
|
|
financial system |
uestion 12
Deposits that add new reserves to the bank where they are deposited are called
|
|
|
primary deposits. |
|
|
|
derivative deposits. |
|
|
|
secondary deposits. |
|
|
|
Special Drawing Rights. |
uestion 13
Under the authority of the Federal Reserve Act of 1913
|
|
|
all national and state-chartered banks must become members of the Fed. |
|
|
|
only national banks were permitted to become members of the Fed. |
|
|
|
state-chartered banks were permitted to withdraw from membership with the Fed. |
|
|
|
a system of deposit insurance was created. |
uestion 14
Occurs when tax revenues are more than expenditures.
|
|
|
Federal budget |
|
|
|
Budget surplus |
|
|
|
Balanced budget |
|
|
|
Monetizing the debt |
The Fed controls the _____ supply.
|
|
|
credit |
|
|
|
mortgage |
|
|
|
money |
|
|
|
credit card balances |
uestion 16
The capital stock of each Federal Reserve Bank
|
|
|
is owned by the Board of Governors of the Fed. |
|
|
|
can be used in an emergency to provide funds for the Fed. |
|
|
|
is owned by members of the individual Federal Reserve Banks. |
|
|
|
has been reserved for purchase of the U.S. Treasury. |
uestion 17
Two risky assets can be combined to lower the overall risk of a portfolio. This principle is commonly referred to as
|
|
|
blending |
|
|
|
asset allocation |
|
|
|
diversification |
|
|
|
portfolio segmentation |
uestion 18
Budgetary deficits always have the effect of
|
|
|
creating inflationary pressures. |
|
|
|
crowding out private lenders. |
|
|
|
forcing the Federal Reserve to buy government securities. |
|
|
|
creating governmental competition for private investment funds. |
uestion 19
The U.S. banking system has the ability to alter the size of the money supply because of the use of
|
|
|
a 100% reserve system. |
|
|
|
a fractional reserve system. |
|
|
|
the Federal Reserve System’s excess reserves. |
|
|
|
Federal Reserve notes issued by the U.S. Treasury. |
uestion 20
In September, 2008 ____________ was acquired by Bank of America and _____________ declared bankruptcy when no viable financial alternatives surfaced.
|
|
|
Bank of America; Washington Mutual |
|
|
|
Merrill Lynch; Lehman Brothers |
|
|
|
Citicorp; Smith Barney |
|
|
|
Morgan Stanley; Chase |
