Exam 17: Money and the Banking System

Community Bank Jeffrey is the training manager for the Community Bank in Maryland.Jeffrey has developed a training programme for all new employees that emphasises understanding the basics of money.Jeffrey and the bank's management believe that if the employees understand the basics of money, they can utilise the information in their own personal finances as well as guide and answer questions from bank customers. The bank recently hired Laila.She was hired at a high-level position because she brought with her extensive bank management experience.Laila's responsibilities included making sure that the reserve requirement would always be met and keeping track of the interest rate that the Federal Reserve System charged for loans to member banks. -Refer to Community Bank.In giving examples to new employees, Jeffrey has indicated that when customers put their money in a bank, some are looking to retain and accumulate wealth.This refers to which of the following functions of money?

The Senate confirms the appointment of each member of the board of governors for a term of ____ year(s).

M&B Bank Ken is a senior manager at M&B Bank.Initially, he started as a front counter worker and slowly progressed up the career ladder.In his role as a senior manager, Ken is keeping a keen eye on the industry, the Federal Reserve System, and the bank's competitors.Ken's previous boss did not do that well, and as a result the bank had suffered. Several employees have pointed out that many businesses are not aware of the procedures for or a systematic way to evaluate the creditworthiness of their customers, collect past-due payments from customers, and protect their businesses from such losses.Based on feedback from several employees, M&B has decided to offer credit-counseling workshops for individuals and small businesses. -Refer to M&B Bank.As Ken keeps an eye on the industry, he notices many changes.Which of the following is not a change that Ken would have noticed or obtained information about?

In her college economics class, Kelly will give a report on money.The title of her paper is "Money: It Doesn't Disintegrate When Handled or Melt in the Sun." Which of the five essential elements of money will she talk most about?

Neal has €25,000 invested in a money-market mutual fund.This type of fund is an example of

Five-, ten-, twenty-, fifty-, and hundred-euro bills provide portability and make money easy to carry.

Often, banks will exchange one currency for another to aid firms conducting international business transactions.

Investment banking firms are organisations that assist individuals in acquiring personal loans, investing in corporate securities, and purchasing bonds.

When you use a debit card to pay for a purchase, the amount of the purchase is subtracted from your bank account at the moment the purchase is completed.

Nancy Murray has €6,000 in demand deposits with the Teachers Credit Union.This means that she has €6,000 in

Commercial paper is a short-term promissory note issued by large corporations.

York Department Store does 50 percent of its business on credit and frequently has to tolerate slow-paying customers and those who simply do not pay.Now it would like to facilitate immediate cash purchases for customers who don't like to write checks or to carry much cash with them.What would you recommend?

Community Bank Jeffrey is the training manager for the Community Bank in Maryland.Jeffrey has developed a training programme for all new employees that emphasises understanding the basics of money.Jeffrey and the bank's management believe that if the employees understand the basics of money, they can utilise the information in their own personal finances as well as guide and answer questions from bank customers. The bank recently hired Laila.She was hired at a high-level position because she brought with her extensive bank management experience.Laila's responsibilities included making sure that the reserve requirement would always be met and keeping track of the interest rate that the Federal Reserve System charged for loans to member banks. -Refer to Community Bank.One of Laila's responsibilities is keeping track of the interest rate that the Federal Reserve System charges for loans to member banks.Which of the following should Laila be tracking?

A means for performing financial transactions through a computer terminal or telephone hookup is

Vance Co.is required to provide collateral in order to obtain a long-term business loan.Which of the following would not be acceptable collateral to most lenders?

As a result of the Fair Credit Reporting Act, every consumer has the right to know what information is in his or her credit bureau file.

There are approximately 1,900 national banks.

Money that is held and spent later represents a ____, or a means for retaining and accumulating wealth.

Which of the following would not be included in the M₁ definition of money?

Credit unions generally pay higher interest to depositors while providing loans at lower cost than commercial banks.