Exam 13: Managing Financial Resources

What is the prime rate is and how does it function?

Savings banks are the most common financial institutions in the United States.

The fact that people are willing to save money for future purposes describes which function of money _____.

Credit unions offer only limited services to their members, who must be linked to a particular group such as employees of the State of North Carolina.

A(n) _____ is a financial plan that projects cash inflows and outflows over a period of time.

The Fed performs all of the following functions except:

M-2 is a measure of the money supply that includes everything in M-1 plus near-cash.

Individual retirement accounts (IRAs) can accumulate money that's tax free until the investor retires.

The _____ is the amount by which an initial bank deposit will expand the money supply.

_____ trading is the illegal buying or selling of securities by a firm's officers or directors or anyone else taking advantage of valuable information about a company before it's made public.

Loans from family and friends are the most important source of funds for any new business.

Which of the following is the highest rate

A market index is a measure for tracking stock prices.

What are the three basic functions of money?

Successful investor Warren Buffet owns some _____ stock, which pays a fixed annual dividend.

The _____ rate is the interest rate paid by a Federal Reserve member bank when it borrows from another member bank to meet its reserve requirements.

You're the president of a savings bank that just took in a deposit of $100. Your bank's reserve requirement is 10 percent. Using the concept of the money multiplier, the deposit will generate how much in loans

The Fed does all of the following except _____.

Explain the Dow Jones Industrial Average.

The inflation rate is one of the three tools with which the Fed conducts monetary policy.