Exam 1: An Introduction to Money and the Financial System

If the U.S. Supreme Court ruled that states could no longer require people to have auto insurance, do you think most people would cancel their policies? Explain.

In 2010, regulators of many nations agreed on a major update of internationally active banks known as:

The New York Stock Exchange is an example of a:

How do central banks, like the U.S. Federal Reserve, contribute to the welfare of a society?

Suppose that IBM considers expanding its operations. The expansion will require $400 million for two new factories which the corporation plans to raise by selling stock and bonds. Which of the core principles will come into play as investors decide whether or not to buy the stock and the bonds?

Which core principle(s) could you use to explain why credit card issuers charge such high rates of interest?

When an individual obtains a car loan and makes all of the regular monthly payments, the sum of the payments made will exceed the purchase price of the car. This is due primarily to the core principle:

In the United States, control of the quantity of money is given to the:

Central banks can improve the welfare of a society by doing all of the following except:

Which of the following is an example of a financial market?

Identify which item is not one of the six parts of the financial system.

The central bank of the United States is:

What is the primary function of U.S. regulatory agencies in the U.S. financial system?

U.S. monetary policy is best described as:

Identify the five core principles of Money and Banking.

Most financial markets in the United States operate under a system:

Which of the following statements best describes financial instruments?

Which of the following statements best describes financial markets?

Identify which of the following is not one of the five core principles of money and banking.

The largest regulatory change in U.S. financial markets since 1930 is known as: