math1

  

uestion 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