quiz test quizzes tests ?-! iq test quiz icon
AllTheTests.com
quizzes and tests in English quizzen en tests in Nederlands Quizze und Tests in Deutsch

Intern

www.AllTheTests.com -» The Quiz

Money and Banking Test 1 Review 2

Test 1 Review 2

The quiz is developed on: 05.02.2010

Question 1: An asset that is generally accepted as payment for goods and services or repayment of debt
 Money
 Bond
 Financial Instrument
 Equities

Question 2: Money used in exchange for goods & services
 Means of payment
 Unit of account
 Store of Value

Question 3: Money used to quote prices
 Means of Payment
 Store of Value
 Unit of Account

Question 4: Used to move purchasing power into the future
 Store of Value
 Means of payment
 Unit of account

Question 5: Objects with intrinsic value
 Fiat Money
 Commodity Money
 Checks

Question 6: Value comes from government decree (or fiat)
 Commodity Money
 Checks
 Fiat Money

Question 7: Instructions to the bank to shifts funds from your
account to that of the person or firm whose name is
written in the “Pay to the Order of” line.
 Checks
 Fiat Money
 Commodity Money

Question 8: Electronic message to your bank to transfer funds
immediately, like a check
 Debit Card
 Credit Card
 Checking Card

Question 9: Deferred payment
– Issuer makes payment for you
– You have to pay it back
 Credit Card
 Check Card
 Debit Card

Question 10: Which of the following is happening to the future of money?
 Unit of account: likely to remain
 Means of payment: disappearing
 Store of value: disappearing
 All of the above

Question 11: The rate at which the general price level is increasing over time
 Deflation
 Inflation
 Deflation Rate
 Inflation Rate

Question 12: The measure of the inflation process
 Inflation Rate
 Deflation
 Deflation Rate
 Inflation

Question 13: A measure of the ease an asset can be turned into a means of payment (Money).
 Liquidity
 Inflation
 Deflation

Question 14: Narrowest definition
Only most liquid assets
 M1
 M3
 M2

Question 15: Broader definition Includes assets not used as means of payment.
 M3
 M2
 M1

Question 16: When inflation is ____, money growth helps
forecast inflation.
 High
 Invisible
 Low

Question 17: When inflation is ____, the relationship between it and money growth is not as close.
 Invisible
 Low
 High

Question 18: Answers the question: "How much more would it cost for people to purchase today the same basket of goods and services that they actually bought at some fixed time in the past?“

It is the Fixed Weight Index
 Inflation
 GD
 CPI

Question 19: GDP or Personal Consumption Expenditure
 Chain-Weight Index
 Deflator
 CPI

Question 20: Half way between fixed weight and a Deflator.
 Chain Weight Index
 Deflator
 CPI

Question 21: Institution stands between lender and borrower.
 Indirect Finance
 Portfolio Finance
 Direct Finance

Question 22: Borrowers sell securities directly to lenders in the financial markets
 Direct Finance
 Portfolio Finance
 Indirect Finance

Question 23: A written legal obligation of one party to
transfer something of value, usually money, to another party at some future date, under certain conditions
 Assets
 Financial Instrument
 Liabilities

Question 24: Uses of Financial Instruments:
 All of the above
 Transfer of Risk-Transfer risk from one person to another
 Store of Value-Transfer purchasing power into the future
 Means of Payment-Purchase goods and services

Question 25: Overcome the costs of complexity, makes them easier to understand
 Easy
 Standardization
 Communicate Information

Question 26: Summarize essential information about issuer. Eliminate expense of collecting information
 Easy
 Standardization
 Communicate Information

Question 27: Used to transfer resources
Examples: stocks and bonds
 Underlying Financial Instruments
 Derivative Financial Instruments
 Overlying Financial Instruments

Question 28: Value derived from underlying instruments
Examples: Futures and options
 Derivative Financial Instruments
 Overlying Financial Instruments
 Underlying Financial Instruments

Question 29: True/false: The size, timing, likelihood payment is made, and conditions under which payment is made all affect the value of financial instruments
 True
 False
 N/A

Question 30: Financial Instrument A requires a large payment, you make the payment sooner, a payment is likely to be made, and you need the instrument badly.

Financial Instrument B requires a small payment, you will make the payment later, a payment is not likely to be made, and you don't need the instrument badly.

Which financial instrument is more valuable?
 A
 B
 Both are the same
 Neither are valuable

Question 31: Examples of stores of values for Financial Instruments:
 Home Mortgages
 Bonds
 All of the above
 Stocks
 Bank Loans

Question 32: Financial Instruments used to transfer risk
 All of the above
 Insurance companies
 Futures contracts
 Options

Question 33: Places where financial instruments
are bought and sold.
 Financial Markets
 Financial Institutions
 Financial Instruments

Question 34: Roles of Financial Markets include:
 Risk Sharing-Provide individuals a place to buy and sell risk.
 Information-Pool and communication information about issuers of financial instruments.
 All of the above
 Liquidity-Ensures owners can buy and sell financial instruments cheaply

Question 35: Buy and Sell Newly Issued Securities
 Tertiary Financial Market
 Secondary Financial Market
 Primary Financial Market

Question 36: Trade Existing Securities
 Secondary Financial Market
 Primary Financial Market
 Tertiary Financial Market

Question 37: Physical location where trading takes place
 Centralized Exchange
 Over The Counter Market
 Electronic Communication Network

Question 38: Networks of dealers connected electronically
 Electronic Communication Network
 Over The Counter Market
 Centralized Exchange

Question 39: Electronic networks where buyers and sellers interact directly.
 Electronic Communication Network
 Centralized Exchange
 Over The Counter Network

Question 40: Financial claims are bought and sold for immediate
cash payment
 Debt and Equity Markets
 Derivative Markets
 Futures Markets

Question 41: Financial claims based on underlying instruments are bought and sold for payment at a future date
 Derivatives Markets
 Debt and Equity Markets
 Futures Markets

Question 42: Well functioning markets have:
 Low Transaction Costs
 Protect Investors
 All of the above
 Communicate Accurate Information

Question 43: Financial Institutions:
 Reduce transactions cost by specializing in the issuance of standardized securities
 All of the above
 Issue short term liabilities and purchase long‐term loans.
 Reduce information costs of screening and monitoring borrowers

Question 44: Assets for a Financial Institution
 Savings, Options, Securities
 Deposits, Insurance Policies
 Bonds, Stocks, Loans, Real Estate

Question 45: Take deposits and make loans
 Insurance Companies
 Depository Institutions
 Pension Funds
 Security Firms
 Finance Companies

Question 46: Accept premiums, pay out based on events
 Government Sponsored Enterprises
 Pension Funds
 Insurance Companies
 Security Firms
 Finance Companies

Question 47: Invest contributions, provide payments
to retirees
 Security Firms
 Pension Funds
 Finance Companies
 Insurance Companies
 Government sponsored enterprises

Question 48: Proved access to financial markets
 Government Sponsored Enterprises
 Security Firms
 Finance Companies
 Insurance Companies
 Pension Funds

Question 49: Raise funds in financial markets, make loans
 Security Firms
 Government Sponsored Enterprises
 Pension Funds
 Financial Companies

Question 50: Raise funds in financial markets, make loans,
provide guarantees.
 Pension Funds
 Government Sponsored Enterprises
 Security Firms
 Finance Companies

This quiz is developed by Dan .

E-mail this page to your friends!

Make your own quiz or test

AllTheTests.com
Your Searchengine and your link to the collection of all iq tests, EQ tests, earning power, health profile and many others.

Copyright © 1999-2010 by Happy Light Bulb BV, all rights reserved.