Mob for Answer

The four players in the money supply process include
Choose one answer. a. banks, depositors, borrowers, and the U.S. Treasury. b. banks, borrowers, the central bank, and the U.S. Treasury. c. banks, depositors, the central bank, and borrowers. d. banks, depositors, the central bank, and the U.S. Treasury.
Correct
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Question 2
Marks: 1
If a bank has excess reserves of $10,000 and demand deposit liabilities of $80,000, and if the reserve requirement is 20 percent, then the bank has actual reserves of
Choose one answer. a. $16,000. b. $20,000. c. $36,000. d. $26,000.
Correct
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Question 3
Marks: 1
Because of the adverse selection problem,
Choose one answer. a. lenders are reluctant to make loans that are not secured by collateral. b. lenders will write debt contracts that restrict certain activities of borrowers. c. good credit risks are more likely to seek loans causing lenders to make a disproportionate amount of loans to good credit risks. d. lenders may refuse loans to individuals with high net worth, because of their greater proclivity to "skip town."
Correct
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Question 4
Marks: 1
The effect of an open market purchase on reserves differs depending on how the seller of the bonds keeps the proceeds. If the proceeds are kept in ________, the open market purchase has no effect on reserves; if the proceeds are kept as ________, reserves increase by the amount of the open market purchase.
Choose one answer. a. currency; currency b. deposits; currency c. currency; deposits d. deposits; deposits
Correct
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Question 5
Marks: 1
When the Federal Reserve purchases a government bond from a bank, reserves in the banking system ________ and the monetary base ________, everything else held constant.
Choose one answer. a. decrease; decreases b. decrease; increases c. increase; decreases d. increase; increases
Correct
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Question 6
Marks: 1
A lesson of the Enron collapse is that government regulation
Choose one answer. a. increases the problem of asymmetric information. b. should be reduced. c. always fails. d. can reduce but not eliminate asymmetric information.
Correct
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Question 7
Marks: 1
The concept of adverse selection helps to explain all of the following except
Choose one answer. a. why the financial system is so heavily regulated. b. why indirect finance is more important than direct finance as a source of business finance. c. why firms are more likely to obtain funds from banks and other financial intermediaries, rather than from the securities markets. d. why direct finance is more important than indirect finance as a source of business finance.
Correct
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Question 8
Marks: 1
If the anatomy of a financial crisis is thought of as a sequence of events, which of the following events would be least likely to be the initiating cause of the financial crisis?
Choose one answer. a. Increase in uncertainty b. Unanticipated decline in price level c. Stock market decline d. Increase in interest rates
Correct
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Question 9
Marks: 1
Regulators attempt to reduce the riskiness of banks' asset portfolios by
Choose one answer. a. encouraging banks to hold risky assets such as common stocks. b. establishing a minimum interest rate floor that banks can earn on certain assets. c. requiring collateral for all loans. d. limiting the amount of loans in particular categories or to individual borrowers.
Correct
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Question 10
Marks: 1
Financial innovation has caused
Choose one answer. a. banks to suffer declines in their income advantages in acquiring funds, although it has not caused a decline in cost advantages. b. banks to suffer a simultaneous decline of cost and income advantages. c. banks to suffer declines in their cost advantages in acquiring funds, although it has not caused a decline in income advantages. d. banks to achieve competitive advantages in both costs and income.
Correct
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Question 11
Marks: 1
Provisions in loan contracts that prohibit borrowers from engaging in specified risky activities are called
Choose one answer. a. proscription bonds. b. due-on-sale clauses. c. liens. d. restrictive covenants.
Correct
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Question 12
Marks: 1
Moral hazard is an important concern of insurance arrangements because the existence of insurance
Choose one answer. a. causes the private cost of the insured activity to increase. b. is a hindrance to efficient risk taking. c. creates an adverse selection problem but no moral hazard problem. d. provides increased incentives for risk taking.
Correct
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Question 13
Marks: 1
The ability to use one resource to provide different products and services is
Choose one answer. a. economies of scope. b. vertical integration. c. diversification. d. economies of scale.
Correct
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Question 14
Marks: 1
The percentage of deposits that banks must hold in reserve is the
Choose one answer. a. currency ratio. b. required reserve ratio. c. excess reserve ratio. d. total reserve ratio.
Correct
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Question 15
Marks: 1
Both ________ and ________ are monetary liabilities of the Fed.
Choose one answer. a. government securities; reserves b. government securities; discount loans c. currency in circulation; discount loans d. currency in circulation; reserves
Correct
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Question 16
Marks: 1
The quantity of reserves supplied equals
Choose one answer. a. nonborrowed reserves minus borrowed reserves. b. required reserves plus borrowed reserves. c. total reserves minus required reserves. d. nonborrowed reserves plus borrowed reserves.
Correct
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Question 17
Marks: 1
In general, banks make profits by selling ________ liabilities and buying ________ assets.
Choose one answer. a. risky; risk-free b. short-term; longer-term c. long-term; shorter-term d. illiquid; liquid
Correct
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Question 18
Marks: 1
A bank's commitment to provide a firm with loans up to pre-specified limit at an interest rate that is tied to a market interest rate is called
Choose one answer. a. an adjustable portfolio loan. b. an adjustable gap loan. c. pre-credit loan line. d. loan commitment.
Correct
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Question 19
Marks: 1
Members of the Board of Governors are
Choose one answer. a. appointed by the president of the United States and confirmed by the Senate as members resign. b. chosen by the Federal Reserve Bank presidents. c. never allowed to serve more than 7-year terms. d. appointed by the newly elected president of the United States, as are cabinet positions.
Correct
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Question 20
Marks: 1
A financial innovation that developed as a result of banks avoidance of bank branching restrictions was ________.
Choose one answer. a. bank holding companies b. money market mutual funds c. junk bonds d. commercial paper
Correct
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Question 21
Marks: 1
An advantage to American banks from operating foreign branches is that Eurodollar deposits in offshore branches are
Choose one answer. a. not subject to reserve requirements. b. subject to extensive regulatory supervision. c. insured by the FDIC. d. all demand deposits that pay no interest.
Correct
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Question 22
Marks: 1
Which of the following is NOT an entity of the Federal Reserve System?
Choose one answer. a. The Comptroller of the Currency b. The Federal Open Market Committee c. The Board of Governors d. Federal Reserve Banks
Correct
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Question 23
Marks: 1
Since 1974, commercial banks importance as a source of funds for nonfinancial borrowers
Choose one answer. a. has expanded dramatically, from around 30 percent of total credit advanced to above 50 percent by 2005. b. has expanded dramatically, from around 50 percent of total credit advanced to above 70 percent by 2005. c. has shrunk dramatically, from around 70 percent of total credit advanced to below 50 percent by 2005. d. has shrunk dramatically, from around 40 percent of total credit advanced to below 30 percent by 2005.
Correct
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Question 24
Marks: 1
The trend in recent years is that more and more governments
Choose one answer. a. have been granting greater independence to their central banks. b. have required their central banks to cooperate more with their Ministers of Finance. c. have mandated that their central banks focus on controlling inflation. d. have been reducing the independence of their central banks to make them more accountable for poor economic performance.
Correct
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Question 25
Marks: 1
The most significant change in the economic environment that changed the demand for financial products in recent years has been
Choose one answer. a. the aging of the baby-boomer generation. b. the dramatic increase in the volatility of interest rates. c. the dramatic increase in competition from foreign banks. d. the deregulation of financial institutions.
Correct
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Question 26
Marks: 1
According to Edward Kane, because the banking industry is one of the most ________ industries in America, it is an industry in which ________ is especially likely to occur.
Choose one answer. a. regulated; loophole mining b. regulated; innovation c. competitive; innovation d. competitive; loophole mining
Correct
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Question 27
Marks: 1
________ may antagonize customers and thus can be a very costly way of acquiring funds to meet an unexpected deposit outflow.
Choose one answer. a. Selling negotiable CDs b. Selling securities c. Selling loans d. Calling in loans
Correct
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Question 28
Marks: 1
Adjustable rate mortgages
Choose one answer. a. generally have higher initial interest rates than on conventional fixed-rate mortgages. b. keep financial institutions' earnings high even when interest rates are falling. c. benefit homeowners when interest rates are falling. d. protect households against higher mortgage payments when interest rates rise.
Correct
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Question 29
Marks: 1
In the absence of regulation, banks would probably hold
Choose one answer. a. too much capital, reducing the profitability of banks. b. too much capital, making it more difficult to obtain loans. c. too much capital, reducing the efficiency of the payments system. d. too little capital.
Correct
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Question 30
Marks: 1
In the market for reserves, if the federal funds rate is between the discount rate and the interest rate paid on excess reserves, an increase in the reserve requirement ________ the demand for reserves, ________ the federal funds rate, everything else held constant.
Choose one answer. a. decreases; lowering b. increases; lowering c. decreases; raising d. increases; raising
Correct
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If the Fed expects currency holdings to fall, it conducts open market ________ to offset the expected ________ in reserves.
Choose one answer. a. sales; increase b. sales; decrease c. purchases; decrease d. purchases; increase
Correct
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Question 2
Marks: 1
All else the same, when the Fed calls in a $100 discount loan previously extended to the First National Bank, reserves in the banking system
Choose one answer. a. increase by $100. b. decrease by more than $100. c. decrease by $100. d. increase by more than $100.
Correct
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Question 3
Marks: 1
When the federal funds rate equals the interest rate paid on excess reserves ________.
Choose one answer. a. the supply curve of reserves is vertical b. the demand curve for reserves is horizontal c. the demand curve for reserves is vertical d. the supply curve of reserves is horizontal
Correct
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Question 4
Marks: 1
Since 1980
Choose one answer. a. banks have offset the decline in profits from off-balance-sheet activities with increased income from traditional activities. b. banks have offset the decline in profits from traditional activities with increased income from off-balance-sheet activities. c. bank profits have grown rapidly due to deregulation. d. bank profitability has declined.
Correct
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Question 5
Marks: 1
The quantity of reserves demanded equals
Choose one answer. a. required reserves plus borrowed reserves. b. excess reserves plus borrowed reserves. c. total reserves minus excess reserves. d. required reserves plus excess reserves.
Correct
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Question 6
Marks: 1
Funds held in ________ are subject to reserve requirements.
Choose one answer. a. all checkable deposits b. all time deposits c. all checkable, time, and money market fund deposits d. all checkable and time deposits
Correct
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Question 7
Marks: 1
The government institution that has responsibility for the amount of money and credit supplied in the economy as a whole is the
Choose one answer. a. commercial bank. b. bank of settlement. c. monetary fund. d. central bank.
Correct
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Question 8
Marks: 1
In the simple deposit expansion model, an expansion in checkable deposits of $1,000 when the required reserve ratio is equal to 10 percent implies that the Fed
Choose one answer. a. purchased $1000 in government bonds. b. purchased $100 in government bonds. c. sold $100 in government bonds. d. sold $1,000 in government bonds.
Correct
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Question 9
Marks: 1
If a member of the nonbank public sells a government bond to the Federal Reserve in exchange for currency, the monetary base will ________, but ________.
Choose one answer. a. remain unchanged; reserves will fall b. remain unchanged; reserves will rise c. rise; reserves will remain unchanged d. rise; currency in circulation will remain unchanged
Correct
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Question 10
Marks: 1
________ within the U.S. can make loans to foreigners but cannot make loans to domestic residents.
Choose one answer. a. Edge Act corporations b. Universal banks c. Euro banks d. International Banking Facilities
Correct
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Question 11
Marks: 1
The Fed uses three policy tools to manipulate the money supply: ________, which affect reserves and the monetary base; changes in ________, which affect the monetary base; and changes in ________, which affect the money multiplier.
Choose one answer. a. open market operations; borrowed reserves; reserve requirements b. borrowed reserves; open market operations; margin requirements c. open market operations; borrowed reserves; margin requirements d. borrowed reserves; open market operations; reserve requirements
Correct
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Question 12
Marks: 1
An advantage to American banks from operating foreign branches is that Eurodollar deposits in offshore branches are
Choose one answer. a. all demand deposits that pay no interest. b. subject to extensive regulatory supervision. c. not subject to reserve requirements. d. insured by the FDIC.
Correct
Marks for this submission: 1/1.
Question 13
Marks: 1
Holding large amounts of bank capital helps prevent bank failures because
Choose one answer. a. it makes it easier to call in loans. b. it means that the bank has a higher income. c. it makes loans easier to sell. d. it can be used to absorb the losses resulting from a deposit outflow.
Correct
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Question 14
Marks: 1
The most common type of discount lending that the Fed extends to banks is called
Choose one answer. a. secondary credit. b. primary credit. c. installment credit. d. seasonal credit.
Correct
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Question 15
Marks: 1
The process of transforming otherwise illiquid financial assets into marketable capital market instruments is know as
Choose one answer. a. internationalization. b. securitization. c. arbitrage. d. program trading.
Correct
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Question 16
Marks: 1
The reduction in transactions costs per dollar of investment as the size of transactions increases is
Choose one answer. a. economies of trade. b. discounting. c. economies of scale. d. diversification.
Correct
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Question 17
Marks: 1
The four players in the money supply process include
Choose one answer. a. banks, depositors, the central bank, and borrowers. b. banks, depositors, the central bank, and the U.S. Treasury. c. banks, borrowers, the central bank, and the U.S. Treasury. d. banks, depositors, borrowers, and the U.S. Treasury.
Correct
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Question 18
Marks: 1
A debt contract is incentive compatible
Choose one answer. a. if the borrower has the incentive to behave in the way that the lender expects and desires, since doing otherwise jeopardizes the borrower's net worth in the business. b. if the lender has the incentive to behave in the way that the borrower expects and desires. c. if the borrower's net worth is sufficiently low so that the lender's risk of moral hazard is significantly reduced. d. if the debt contract is treated like an equity.
Correct
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Question 19
Marks: 1
All ________ are required to be members of the Fed.
Choose one answer. a. state chartered banks b. nationally chartered banks c. banks with assets less than $100 million d. banks with assets less than $500 million
Correct
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Question 20
Marks: 1
Analysis of adverse selection indicates that financial intermediaries, especially banks,
Choose one answer. a. must buy securities from corporations to diversify the risk that results from holding non-tradable loans. b. despite their success in overcoming free-rider problems, nevertheless play a minor role in moving funds to corporations. c. provide better-known and larger corporations a higher percentage of their external funds than they do to newer and smaller corporations which rely to a greater extent on the new issues market for funds. d. have advantages in overcoming the free-rider problem, helping to explain why indirect finance is a more important source of business finance than is direct finance.
Correct
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Question 21
Marks: 1
A debit card differs from a credit card in that
Choose one answer. a. a credit card is a loan while for a debit card purchase, payment is made immediately. b. a credit card is a long-term loan while a debit card is a short-term loan. c. a debit card is a loan while for a credit card purchase, payment is made immediately. d. a debit card is a long-term loan while a credit card is a short-term loan.
Correct
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Question 22
Marks: 1
The monetary base consists of
Choose one answer. a. currency in circulation and Federal Reserve notes. b. reserves and Federal Reserve Notes. c. currency in circulation and the U.S. Treasury's monetary liabilities. d. currency in circulation and reserves.
Correct
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Question 23
Marks: 1
Suppose your payroll check is directly deposited to your checking account. Everything else held constant, total reserves in the banking system ________ and the monetary base ________.
Choose one answer. a. remain unchanged; _remains unchanged b. decrease; decreases c. remain unchanged; increases d. decrease; increases
Correct
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Question 24
Marks: 1
In order to reduce the ________ problem in loan markets, bankers collect information from prospective borrowers to screen out the bad credit risks from the good ones.
Choose one answer. a. adverse selection b. moral hazard c. adverse lending d. moral suasion
Correct
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Question 25
Marks: 1
The concept of adverse selection helps to explain all of the following except
Choose one answer. a. why the financial system is so heavily regulated. b. why indirect finance is more important than direct finance as a source of business finance. c. why firms are more likely to obtain funds from banks and other financial intermediaries, rather than from the securities markets. d. why direct finance is more important than indirect finance as a source of business finance.
Correct
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Question 26
Marks: 1
Everything else held constant, in the market for reserves, when the federal funds rate is 5%, lowering the discount rate from 5% to 4%
Choose one answer. a. raises the federal funds rate. b. has an indeterminate effect on the federal funds rate. c. lowers the federal funds rate. d. has no effect on the federal funds rate.
Correct
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Question 27
Marks: 1
For restrictive covenants to help reduce the moral hazard problem they must be ________ by the lender.
Choose one answer. a. written in all capitals b. monitored and enforced c. easily changed d. impossible to remove
Correct
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Question 28
Marks: 1
Moral hazard in equity contracts is known as the ________ problem because the manager of the firm has fewer incentives to maximize profits than the stockholders might ideally prefer.
Choose one answer. a. principal-agent b. debt deflation c. adverse selection d. free-rider
Correct
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Question 29
Marks: 1
The quantity of reserves supplied equals
Choose one answer. a. required reserves plus borrowed reserves. b. nonborrowed reserves minus borrowed reserves. c. nonborrowed reserves plus borrowed reserves. d. total reserves minus required reserves.
Incorrect
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Question 30
Marks: 1
The oldest central bank, having been founded in 1694, is the
Choose one answer. a. Bank of England. b. Deutsche Bundesbank. c. Bank of Japan. d. Federal Reserve System.
Correct
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1
Marks: 1
When banks borrow money from the Federal Reserve, these funds are called
Choose one answer. a. federal loans. b. federal funds. c. Treasury funds. d. discount loans.
Correct
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Question 2
Marks: 1
If a bank has $200,000 of checkable deposits, a required reserve ratio of 20 percent, and it holds $80,000 in reserves, then the maximum deposit outflow it can sustain without altering its balance sheet is
Choose one answer. a. $30,000. b. $50,000. c. $40,000. d. $25,000.
Correct
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Question 3
Marks: 1
One purpose of regulation of financial markets is to
Choose one answer. a. limit the profits of financial institutions. b. guarantee that the maximum rates of interest are paid on deposits. c. increase competition among financial institutions. d. promote the provision of information to shareholders, depositors and the public.
Correct
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Question 4
Marks: 1
The Fed's lender-of-last-resort function
Choose one answer. a. has proven to be ineffective. b. is no longer necessary due to FDIC insurance. c. creates a moral hazard problem. d. cannot prevent runs by large depositors.
Correct
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Question 5
Marks: 1
A decrease in ________ increases the money supply since it causes the ________ to rise.
Choose one answer. a. reserve requirements; money multiplier b. margin requirements; money multiplier c. reserve requirements; monetary base d. margin requirements; monetary base
Correct
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Question 6
Marks: 1
Under the European System of Central Banks, the Governing Council is similar in structure to the ________ of the Federal Reserve System.
Choose one answer. a. Federal Advisory Council b. Federal Open Market Committee c. Federal Reserve Banks d. Board of Governors
Correct
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Question 7
Marks: 1
Regulators attempt to reduce the riskiness of banks' asset portfolios by
Choose one answer. a. requiring collateral for all loans. b. establishing a minimum interest rate floor that banks can earn on certain assets. c. limiting the amount of loans in particular categories or to individual borrowers. d. encouraging banks to hold risky assets such as common stocks.
Correct
Marks for this submission: 1/1.
Question 8
Marks: 1
In order to reduce the ________ problem in loan markets, bankers collect information from prospective borrowers to screen out the bad credit risks from the good ones.
Choose one answer. a. moral suasion b. adverse lending c. moral hazard d. adverse selection
Correct
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Question 9
Marks: 1
Under the European System of Central Banks, the National Central Banks have the same role as the ________ of the Federal Reserve System.
Choose one answer. a. Federal Open Market Committee b. Board of Governors c. Federal Advisory Council d. Federal Reserve Banks
Correct
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Question 10
Marks: 1
Which of the following statements is false?
Choose one answer. a. A bank issues liabilities to acquire funds. b. The bank's assets provide the bank with income. c. Bank capital is recorded as an asset on the bank balance sheet. d. A bank's assets are its uses of funds.
Correct
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Question 11
Marks: 1
The evidence from banking crises in other countries indicates that
Choose one answer. a. regulatory forbearnace never leads to problems. b. deregulation combined with poor regulatory supervision raises moral hazard incentives. c. a government safety net for depositors need not increase moral hazard. d. deposit insurance is to blame in each country.
Correct
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Question 12
Marks: 1
ATMs were developed because of breakthroughs in technology and as a
Choose one answer. a. means of avoiding paying interest to corporate customers. b. means of avoiding restrictive branching regulations. c. way of concealing transactions from the SEC. d. increasing the competition from foreign banks.
Correct
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Question 13
Marks: 1
Net worth can perform a similar role to ________.
Choose one answer. a. economies of scale b. collateral c. intermediation d. diversification
Correct
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Question 14
Marks: 1
Bank capital is listed on the ________ side of the bank's balance sheet because it represents a ________ of funds.
Choose one answer. a. liability; source b. liability; use c. asset; source d. asset; use
Correct
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Question 15
Marks: 1
Which of the following statements concerning external sources of financing for nonfinancial businesses in the United States are true?
Choose one answer. a. Since 1970, more than half of the new issues of stock have been sold to American households. b. Stocks and bonds, combined, supply less than one-half of the external funds. c. Stocks are a far more important source of finance than are bonds. d. Financial intermediaries such as banks are the least important source of external funds for businesses.
Correct
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Question 16
Marks: 1
A bank will want to hold more excess reserves (everything else equal) when
Choose one answer. a. it expects to have deposit inflows in the near future. b. the cost of selling loans falls. c. the discount rate decreases. d. brokerage commissions on selling bonds increase.
Correct
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Question 17
Marks: 1
Which of the following bank assets is the most liquid?
Choose one answer. a. Cash items in process of collection b. Consumer loans c. U.S. government securities d. Reserves
Correct
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Question 18
Marks: 1
In a ________ banking system, commercial banks provide a full range of banking, securities, and insurance services, all within a single legal entity.
Choose one answer. a. barrier-free b. severable c. dividerless d. universal
Correct
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Question 19
Marks: 1
The primary difference between the "payoff" and the "purchase and assumption" methods of handling failed banks is
Choose one answer. a. that the FDIC is more likely to use the "payoff" method when the bank is large and it fears that depositor losses may spur business bankruptcies and other bank failures. b. that the FDIC guarantees all deposits, not just those under the $100,000 limit, when it uses the "purchase and assumption" method. c. that the FDIC is more likely to use the purchase and assumption method for small institutions because it will be easier to find a purchaser for them compared to large institutions. d. that the FDIC guarantees all deposits, not just those under the $100,000 limit, when it uses the "payoff" method.
Correct
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Question 20
Marks: 1
If a bank has excess reserves of $7,000 and demand deposit liabilities of $100,000, and if the reserve requirement is 15 percent, then the bank has actual reserves of
Choose one answer. a. $27,000. b. $17,000. c. $22,000. d. $29,000.
Correct
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Question 21
Marks: 1
Suppose your payroll check is directly deposited to your checking account. Everything else held constant, total reserves in the banking system ________ and the monetary base ________.
Choose one answer. a. remain unchanged; _remains unchanged b. decrease; increases c. remain unchanged; increases d. decrease; decreases
Correct
Marks for this submission: 1/1.
Question 22
Marks: 1
________ may antagonize customers and thus can be a very costly way of acquiring funds to meet an unexpected deposit outflow.
Choose one answer. a. Selling negotiable CDs b. Selling loans c. Selling securities d. Calling in loans
Correct
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Question 23
Marks: 1
The most common type of discount lending that the Fed extends to banks is called
Choose one answer. a. seasonal credit. b. installment credit. c. primary credit. d. secondary credit.
Correct
Marks for this submission: 1/1.
Question 24
Marks: 1
The problem created by asymmetric information before the transaction occurs is called ________, while the problem created after the transaction occurs is called ________.
Choose one answer. a. free-riding; costly state verification b. costly state verification; free-riding c. adverse selection; moral hazard d. moral hazard; adverse selection
Correct
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Question 25
Marks: 1
Suppose that from a new checkable deposit, First National Bank holds two million dollars in vault cash, eight million dollars on deposit with the Federal Reserve, and one million dollars in required reserves. Given this information, we can say First National Bank faces a required reserve ratio of ________ percent.
Choose one answer. a. ninety b. ten c. twenty d. eighty
Correct
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Question 26
Marks: 1
Suppose that from a new checkable deposit, First National Bank holds two million dollars in vault cash, nine million dollars in excess reserves, and faces a required reserve ratio of ten percent. Given this information, we can say First National Bank has ________ million dollars on deposit with the Federal Reserve.
Choose one answer. a. eight b. one c. ten d. two
Correct
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Question 27
Marks: 1
Of the following, which would be the first choice for a bank facing a reserve deficiency.
Choose one answer. a. sell securities. b. call in loans. c. borrow from the Fed. d. borrow from other banks.
Correct
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Question 28
Marks: 1
________ are the only depository institutions that are tax-exempt.
Choose one answer. a. Commercial banks b. Credit unions c. Savings and loans d. Mutual savings banks
Correct
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Question 29
Marks: 1
Collateralized debt is also know as
Choose one answer. a. secured debt. b. unsecured debt. c. promissory debt. d. unrestricted debt.
Correct
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Question 30
Marks: 1
There are two ways in which the Fed can provide additional reserves to the banking system: it can ________ government bonds or it can ________ discount loans to commercial banks.
Choose one answer. a. sell; call in b. purchase; extend c. sell; extend d. purchase; call in
Correct
Marks for this submission: 1/1.

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