AnswersFL-2106020-MJ Civics Advanced BUnit Test

Financial Institutions and Banking Answers

8 verified answers2 views
1
Free Preview

Which statement best describes money?

A
Money only includes paper bills and metal coins.
B
Money is always counted in US dollars.
C
Money is what people use to buy goods and services.
D
Money is not part of the banking industry.
2
Free Preview

What are the most basic functions of a bank? Choose two correct answers.to encourage economic growth and low unemploymentto hold deposits in checking and savings accountsto make loans to individuals and businessesto maintain stable prices in the economyto monitor the money supply

A
to encourage economic growth and low unemployment
B
to hold deposits in checking and savings accounts
C
to make loans to individuals and businesses
D
to maintain stable prices in the economy
E
to monitor the money supply
3

When do customers pay interest to a bank?

A
when maintaining a checking account
B
when encouraging economic growth
C
when opening a savings account
D
when borrowing money
4

What can affect the interest rate for a loan? Choose three correct answers.the time of the year the loan is taken outthe customer’s ability to repay the loanthe customer’s social media postswhat the loan is used foreconomic conditions

A
the time of the year the loan is taken out
B
the customer’s ability to repay the loan
C
the customer’s social media posts
D
what the loan is used for
E
economic conditions
5

Which of the following are examples of predatory lending practices? Choose two correct answers.savings accountschecking accountshigh interest ratesincreased money supplyadded fees

A
savings accounts
B
checking accounts
C
high interest rates
D
increased money supply
E
added fees
6

What are the goals of the Federal Reserve? Choose three correct answers.to support failing banksto maintain stable pricesto maximize employmentto print money and mint coinsto keep moderate interest rates

A
to support failing banks
B
to maintain stable prices
C
to maximize employment
D
to print money and mint coins
E
to keep moderate interest rates
7

The Federal Reserve can affect the country’s money supply by

A
hiring more employees.
B
influencing interest rates.
C
opening new banks.
D
printing more money.
8

Why does the Federal Reserve decrease the money supply?

A
to grow the economy and create jobs
B
to reduce inflation and maintain stable prices
C
to lower interest rates and promote borrowing
D
to keep bank from losing money and failing

Did you find these answers helpful?

More from this Course

Instruction
6 verified answers

Instruction

Assignment
1 verified answers

Warm-Up

Assignment
25 verified answers

Cumulative Exam