Exam (elaborations)
FIN 398 test 1 questions with correct answers
- Course
- Nurs 398
- Institution
- University Of Maryland - University College
FIN 398 test 1 questions with correct answers
[Show more]
Content preview
FIN 398 test 1 questions with correct answersWho sets the Fractional reserve banking system - required reserve %
Correct Answer-Federal reserve
What makes the money multiplier process stop? Correct Answer-
Leakages
Types of leakages Correct Answer-1. Demand for currency
2. Demand for excess reserves
3. Types of deposits
What does demand for excess reserve branch out to? Correct Answer--
volatility of withdrawals/deposits
- volatility of loan demand
Types of deposits Correct Answer-- demand deposits
- time deposits
Example of DD Correct Answer-Checking accounts
Example of TD Correct Answer-Savings accounts, CDs
Financial intermediaries fulfill which of the following functions?
A) Brokerage
,B) Asset transformation
C) Payment services
D) All of the above are correct
E) A and B only Correct Answer-D) All of the above are correct
The outlay in monetary expense to track the credit risk of borrowers is
an example of
A) liquidity cost.
B) monitoring cost.
C) price risk.
D) asset acquisition cost.
E) agency cost. Correct Answer-B) monitoring cost.
Actions that utilize the money supply in an effort to impact
macroeconomic activity often are part of
A) fiscal policy.
B) tax policy.
C) monetary policy.
D) credit allocation.
E) redlining. Correct Answer-C) monetary policy.
The process of funding assets of one maturity with liabilities of another
maturity is called
A) size intermediation.
, B) denomination intermediation.
C) credit allocation.
D) payment intermediation.
E) maturity intermediation. Correct Answer-E) maturity intermediation.
The central bank directly controls the portion of money known as
A) inside money.
B) outside money.
C) international money.
D) M2.
E) M3. Correct Answer-B) outside money.
Regulation supporting the lending to socially important sectors of the
economy is
A) safety and soundness regulation.
B) monetary policy regulation.
C) credit allocation regulation.
D) entry regulation.
E) consumer protection regulation. Correct Answer-C) credit allocation
regulation.
The most dramatic increase in the share of assets in FIs in the U.S. has
been in
A) investment companies.
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller cracker. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $15.99. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
67474 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now