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