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Banking and Finance > Unit 4 5 &6 > Flashcards

Unit 4 5 &6 Flashcards

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1
Q

Barter

A

The exchange of one good or service for another

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2
Q

Reserve

A

Deposits kept back not available to make loans from them

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3
Q

Prime Rate

A

The amount banks charge their best loan customers

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4
Q

Fiat Money

A

Money that has value because the government says it has value

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5
Q

Money

A

Anything of value that is accepted in return for goods or services

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6
Q

Interest Rate

A

The stated cost to borrow money

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7
Q

Store of Value means it can be saved or stored to use at a future date

A

T

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8
Q

Banks must keep 20% of deposits in reserves

A

F

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9
Q

During the era of free banking, state banks conducted all bank functions

A

T

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10
Q

If more people want loans, interest rates will decrease

A

F

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11
Q

A customer’s deposit of $1,000 = $900 Excess Reserves

A

T

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12
Q

The prime rate is the stated cost to borrow money

A

F

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13
Q

Money that is backed by gold is an example of representative money

A

T

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14
Q

Money is not durable

A

F

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15
Q

US citizens today can exchange paper currency for gold

A

F

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16
Q

Commodity money is rarely used today

A

T

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17
Q

How many measures does the Federal Reserve us to calculate the money supply?

A

4

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18
Q

Excess Reserves are used for

A

Deposits

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19
Q

Required Reserves are keep at the

A

Federal Reserve and Vaults

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20
Q

UNIT 5

A

break! u deserve it (KEEP GREEN)

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21
Q

Board of Govenors

A

Governing body of the Federal Reserve System`

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22
Q

Federal Reserve System

A

12 Regional Central Banks

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23
Q

Bank Panic

A

When there is a widespread worry that banks do not have enough money to cover customers’s demands for withdrawals

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24
Q

Bank Run

A

Depositors fear their money is not safe in the bank

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25
Q

The first US central bank was chartered in 1791

A

T

26
Q

Congress chartered the second Bank of the United States in 1811

A

F

27
Q

The Federal Reserve is divided into districts of equal size

A

F

28
Q

The Board of Governors reports to the US president

A

F

29
Q

The interest banks pay to borrow money from a Federal Reserve Bank is the discount rate

A

T

30
Q

Federal Reserve Bank has 14 district banks

A

F

31
Q

Presently, the United States has no central bank

A

T

32
Q

The structure of the Fed is meant to safeguard against corruption

A

T

33
Q

All members of the Board of Governors are members of the Federal Open Market Committee

A

T

34
Q

The Federal Open Market Committee is not able to have any power to change anything

A

F

35
Q

Who advocated and developed the first Bank of the United States?

A

Alexander Hamilton

36
Q

The Board of Governors are appointed by the

A

Congress

37
Q

The Federal Reserve System comprises how many regional central banks?

A

12

38
Q

Which of the following is responsible for making monetary policy?

A

Federal reserve Banks

39
Q

Which of the following is not a tool used to conduct monetary policy?

A

Prime Rate

40
Q

If a Bank’s reserve requirement increase and they are required to keep more reserves, what happens to the interest rate they charge to customers for loans?

A

The interest will increase

41
Q

When did the era of free banking occur?

A

1837-1863

42
Q

What interest rate does the bank charge their best customers?

A

Prime Rate

43
Q

When was the Federal Reserve System established?

A

1913

44
Q

UNIT 6

A

Take a break you deserve it (keep at green)

45
Q

Glass-Steagall Act

A

Established the FDIC

46
Q

Truth in Lending Act

A

Requires every lender to provide borrower with information about cost of credit

47
Q

Protects consumers from unfair and deceptive credit card practices

A

Credit Card Act

48
Q

Equal Credit Opportunity Act

A

Makes it illegal for lenders to use factors such as gender and race when determining whether someone should get a loan

49
Q

Fair Credit Reporting Act

A

Protects consumer credit information

50
Q

Gramm-Leach-Bliley Act

A

Allowed banks to engage in almost any financial activity

51
Q

The Truth in Lending Act allows consumers to be aware of the true cost of the loan

A

T

52
Q

Finance charges are the total dollar amount of interest plus anyt fees paid on the loan

A

T

53
Q

The APR includes all fees and costs

A

T

54
Q

The Credit CARD Act can not protect consumers from all unfair credit card practices

A

F

55
Q

Crop failures in the 1920s were one of the contributing factor of bank failures

A

T

56
Q

During the Great Depression, there were lots of bank failures

A

F

57
Q

An interest rate ceiling is the lowest rate a bank can pay on certain deposits

A

T

58
Q

A loan can be rejected based on marital status

A

F

59
Q

A bank run occurs when a small amount of depositors withdraw all of their money from the bank at the same time

A

F

60
Q

The Consumer Credit Protection Act is also known as which of the following?

A

Truth In Lending Act

61
Q

Which Act deals with regulation of banks

A

Which Act deals with regulation of banks

Banking and Finance (1 decks)

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