Banking and Currency Concepts Quiz

An item such as a token or piece of paper that has no intrinsic value, but can be exchanged on demand for a commodity that does have intrinsic value

Federal Deposit Insurance Corporation

<p>False</p> Signup and view all the answers

<p>There was no federal bank, and private institutions freely printed and circulated their own currencies.</p> Signup and view all the answers

<p>Paper currency issued by the United States during the American Civil War.</p> Signup and view all the answers

<p>The charging of real or personal property by a debtor to a creditor as security for a debt.</p> Signup and view all the answers

<p>Assets that are easy to sell or convert into cash without loss in value.</p> Signup and view all the answers

<p>A situation where a large number of customers withdraw deposits simultaneously due to concerns about the bank's solvency.</p> Signup and view all the answers

<p>Money where the government controls the money supply, not backed by a physical commodity like gold.</p> Signup and view all the answers

<p>The failure of 1,043 out of 3,234 savings and loan associations in the U.S. from 1986 to 1995.</p> Signup and view all the answers

<p>Savings accounts and money market funds.</p> Signup and view all the answers

<p>It can be used for other things besides currency.</p> Signup and view all the answers

<p>A system by which the value of a currency was defined in terms of gold.</p> Signup and view all the answers

<p>A banking system in which only a fraction of bank deposits are backed by actual cash available for withdrawal.</p> Signup and view all the answers

<p>The money used to pay down the balance of the loan.</p> Signup and view all the answers

<p>The charge paid to the lender for borrowing money.</p> Signup and view all the answers

<p>Institutions like banks and credit unions that act as middlemen between lenders and borrowers.</p> Signup and view all the answers

<p>The rate the bond issuer pays the holder.</p> Signup and view all the answers

<p>Buyers do not receive periodic interest for a lower price.</p> Signup and view all the answers

<p>A debt security issued by a state or local government.</p> Signup and view all the answers

<p>False</p> Signup and view all the answers

<p>The concept or idea of fairness, particularly in taxation or welfare economics.</p> Signup and view all the answers

<p>An investment program funded by shareholders that trades in diversified holdings.</p> Signup and view all the answers

<p>False</p> Signup and view all the answers

<p>False</p> Signup and view all the answers

<p>False</p> Signup and view all the answers

<p>A person who organizes and operates a business, taking on greater than normal financial risks.</p> Signup and view all the answers

<p>The availability of liquid assets to a market or company.</p> Signup and view all the answers

<p>If you own a $1,000 bond with a coupon rate of 4%, you will receive $40 a year until maturity.</p> Signup and view all the answers

<p>A system of money in general use in a particular country.</p> Signup and view all the answers

<p>Money whose value comes from a commodity of which it is made.</p> Signup and view all the answers

<p>Failure to fulfill an obligation, especially to repay a loan.</p> Signup and view all the answers

<p>The central bank of the United States that regulates the monetary and financial system.</p> Signup and view all the answers

<p>The charge for the privilege of borrowing money, expressed as an annual percentage rate.</p> Signup and view all the answers

<p>The amount owed in a loan.</p> Signup and view all the answers

<p>A claim on a commodity, such as gold or silver certificates.</p> Signup and view all the answers

<p>A market in which prices are falling, encouraging selling.</p> Signup and view all the answers

<p>The value of shares issued by a company.</p> Signup and view all the answers

<p>Redirecting funds for later use.</p> Signup and view all the answers

<p>Any account of value.</p> Signup and view all the answers

<p>Any income received after retirement.</p> Signup and view all the answers

<p>Spreading out investments to reduce risk.</p> Signup and view all the answers

<p>A folder showing a collection of financial assets.</p> Signup and view all the answers

<p>An investment report from a company.</p> Signup and view all the answers

<p>Money received above and beyond the initial investment.</p> Signup and view all the answers

<p>An investment vehicle that is safe but incurs a high penalty for liquidity.</p> Signup and view all the answers

<p>Certificates to loan a company money.</p> Signup and view all the answers

<p>Coupon Rate</p> Signup and view all the answers

<p>The annual rate of return.</p> Signup and view all the answers

<p>Buying a bond below its value and cashing in at full.</p> Signup and view all the answers

<p>AAA = Best investment-grade AA = High quality B = Speculative D = Risky, high return, cheap</p> Signup and view all the answers

<p>No need to share profits</p> Signup and view all the answers

<p>Fixed payment is mandatory</p> Signup and view all the answers

<p>Bonds that will not default.</p> Signup and view all the answers

<p>A government bond issued by the U.S. Treasury.</p> Signup and view all the answers

<p>A security issued by or on behalf of a local authority.</p> Signup and view all the answers

<p>Investment-grade bonds issued by companies.</p> Signup and view all the answers

<p>High yield, high-risk bonds.</p> Signup and view all the answers

<p>Securities and Exchange Commission.</p> Signup and view all the answers

<p>Any money lent longer than one year.</p> Signup and view all the answers

<p>Money lent for less than a year.</p> Signup and view all the answers

<p>Markets where securities can only be redeemed by the original holder.</p> Signup and view all the answers

<p>Markets where securities can be resold multiple times.</p> Signup and view all the answers

<p>To get a higher yield than banks.</p> Signup and view all the answers

<p>Currency + demand deposits + checks.</p> Signup and view all the answers

<p>M1 + certificates of deposits + money market.</p> Signup and view all the answers

<p>Banks.</p> Signup and view all the answers

<p>Durability, portability, divisibility.</p> Signup and view all the answers

<p>Plastic cash.</p> Signup and view all the answers

<p>Promote international trade, economic growth, and state travel.</p> Signup and view all the answers

<p>Bank runs, wildcat banks, state currency.</p> Signup and view all the answers

<p>Banks chartered under state law during the Free Banking Era.</p> Signup and view all the answers