In an inflationary period, as prices go up, money gains value because it can buy more.
Question 1 options:
| True |
| False |
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Question 2 (1 point)
The Federal Reserve is responsible for regulating the U.S. banking industry.
Question 2 options:
| True |
| False |
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Question 3 (1 point)
Commercial paper is a short-term promissory note issued by large corporations.
Question 3 options:
| True |
| False |
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Question 4 (1 point)
When the Fed increases the reserve requirement, banks have more money available for lending.
Question 4 options:
| True |
| False |
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Question 5 (1 point)
When the Fed lowers the discount rate, it is more difficult and more expensive for banks to obtain money.
Question 5 options:
| True |
| False |
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Question 6 (1 point)
Using the current margin requirement, investors can purchase more stock than they could afford to purchase if they used their available cash.
Question 6 options:
| True |
| False |
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Question 7 (1 point)
Credit unions generally pay higher interest to depositors while providing loans at lower cost than commercial banks.
Question 7 options:
| True |
| False |
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Question 8 (1 point)
A certificate of deposit is similar to a savings account except that the bank agrees to pay the depositor a guaranteed interest rate for money left on deposit for a specified period of time.
Question 8 options:
| True |
| False |
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Question 9 (1 point)
Collateral is real estate, stocks, bonds, equipment, or any other asset of value pledged as security for a loan.
Question 9 options:
| True |
| False |
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Question 10 (1 point)
Collateral is more common with long-term loans than with short-term loans.
Question 10 options:
| True |
| False |
