Q&A Hero

Q: Briefly explain the term balance of payments.

Q: In general, what is the goal of fiscal policies?

Q: If an Australian dollar is worth 0.8815 $US, how many Australian dollars would 900 $US buy?

Q: If 1 euro = 1.4955 $US, how many euros will 750 $US buy?

Q: The auditing arm of Congress that helps ensure that federal laws and policies are implemented properly is called the ____________________.

Q: ____________________ are a select group of 20 dealers that the Fed works with to buy and sell securities.

Q: The ____________________, established in 1988, was responsible for communicating across agencies to help ensure a healthy stock market that inspired investor confidence.

Q: The Federal Reserve Bank of Chicago sponsors ____________________ to provide a cross section of ideas regarding issues that cut across many aspects of international banking.

Q: A(n) ___________________ enables a currency to fluctuate based on market conditions.

Q: The ____________________ is the group that makes discount rate decisions.

Q: How many District Banks are in the Federal Reserve?

Q: The right of ____________________ allows a consumer to change his or her mind about a loan until midnight of the third business day following the signing of papers.

Q: ____________________ laws require that the details of lending agreements be specified in writing.

Q: The policy of priming the pump, or cutting taxes to add jobs and stimulate business during an economic downturn is often referred to as ____________________ economics.

Q: The main goals of the Federal Reserves ____________________ policy are to maintain economic growth, to stabilize prices, and to keep international payments flowing smoothly.

Q: ____________________policy involves adjusting budgetary deficits or surpluses to achieve desired economy goals.

Q: The Fair Debt Collection Practices Act includes which principals? a. Third-party collectors may not use deceptive or abusive tactics as they try to collect overdue bills. b. Collectors may not call debtors in a harassing manner. c. Collectors may not reveal collection actions to employers of debtors. d. b and c only e. a and b only f. a and c only g. a, b, and c are correct.

Q: Which of the following is NOTpart of the ongoing organizational structure of the Federal Reserve? a. Primary Dealer Credit Facility b. District Reserve Banks c. Member Banks d. Board of Governors

Q: The a in CAMELS stands for a. adverse feedback loop b. annuity c. asset transformation d. asset adequacy

Q: Which of the following is NOTan example of an agency that is focused on making banking safe and mutually beneficial across international borders? a. International Monetary Fund b. Presidents Working Group on Financial Markets c. Asia Pacific Economic Cooperation d. Bank for International Settlement

Q: Which of the following statements is NOT true? a. Credit bureaus may not report information more than one year old. b. A creditor may not use receipt of public assistance as a factor in determining creditworthiness. c. If there is a billing dispute, creditors may not take adverse action until the dispute is resolved. d. Bill collectors may not call debtors at odd hours.

Q: Which of the following attempts to protect the information that credit bureaus may collect? a. Fair Debt Collection Act b. Fair Credit Reporting Act c. Truth in Lending Act d. Equal Credit Opportunity Act

Q: If the government restricts the flow of cash into the economy too severely, a. businesses will have more money to invest. b. consumers cannot afford to borrow. c. employment will rise dramatically. d. all of the above are true.

Q: The rate of interest the Federal Reserve charges banks for short-term loans is called the a. discount rate. b. federal funds rate. c. reserve requirement rate. d. prime rate.

Q: Which of the following is NOT a function of the Federal Reserve? a. levying a high tax on state bank notes b. conducting bank examinations c. handling the governments central banking function d. determining whether banks can borrow money from the Federal Reserve

Q: The International Monetary Fund (IMF) works to promote economic growth among member countries. a. True b. False

Q: The Strength of Support Assessment (SOSA) report is a quarterly report filed by U.S. banks to summarize how each of the banks branches is performing. a. True b. False

Q: A fixed exchange rate ties the monetary value of one countrys currency to the valuation of another countrys currency. a. True b. False

Q: The Uniform Bank Performance Report is an annual report issued to summarize the performance of international banks operating within the United States. a. True b. False

Q: Janet Yellen began her term as chair of the Federal Reserve in 2014. a. True b. False

Q: The Truth in Lending Act prohibits bill collectors from using deceptive or abusive tactics. a. True b. False

Q: Almost all economists agree that the federal government can effectively regulate the economy by raising or lowering taxes and expenditures. a. True b. False

Q: One of the main functions of the Federal Reserve is to serve as a bank for other banks. a. True b. False

Q: By law, every bank in the United States must be part of the Federal Reserve System. a. True b. False

Q: An increase in money supply and incomes often causes prices to go up as well. a. True b. False

Q: Explain how the successful economy of the 1920s helped cause the Great Depression of the 1930s.​

Q: What effect did the Monetary Control Act of 1980 and the Garn-St Germain Depository Institution Act of 1982 have on banks?

Q: In what year did the Great Depression begin?

Q: What does the Federal Deposit Insurance Corporation do?

Q: Briefly describe some of the causes of the recent mortgage crisis.

Q: Explain why Thomas Jefferson was opposed to the creation of a central bank.

Q: Why did the first Bank of the United States fail?

Q: When did the U.S. government begin to print paper currency? Where did American paper currency come from before then?

Q: What is stagflation?

Q: Why did Franklin D. Roosevelt declare a bank holiday in March 1933?

Q: What problem did the National Currency Act of 1863, later rewritten as the National Banking Act of 1864, address?

Q: How did Alexander Hamilton attempt to establish the federal government as the final authority for Americas economic security?

Q: Give three examples of paper currency in use today.

Q: What is deposit currency?

Q: Angies salary is $45,000. If inflation this year is 3 percent, what does Angies salary need to be in order to hold the same purchasing value?

Q: The original cost of a product is $75. Inflation for the first year is 8 percent; for the second year, inflation is 10 percent. What is the cost of the product at the end of the second year?

Q: On January 1, the cost of a product is $50. If inflation for that year is 12 percent, what does the product cost on December 31 of that year?

Q: If you earn $24,000 per year and the inflation rate is 7% per year, how much would you have to earn next year to keep pace with inflation?

Q: During the 1970s the inflation rate was about ____________________ per year.

Q: The U.S. government currently prints paper currency in seven different denominations, or amounts. If you had one bill of each of these seven denominations, how much money would you have?

Q: Any bank that is part of the Federal Reserve System is called a(n) ____________________ bank.

Q: A collective rise in the supply of money, incomes, and prices is called ____________________.

Q: A bank ____________________ occurs when many people try to withdraw their money from a bank at once.

Q: When a stock is bought on ____________________, it is purchased for a fraction of its price and then resold at a profit without the full purchase price of the stock ever having been paid.

Q: ____________________ quarters are coins that highlight special features in each state.

Q: The National Banking Act of 1864 established the Office of the ____________________ of the Currency to issue charters to national banks.

Q: The ____________________ Treasury System was a network of federal offices that handled U.S. government money in the years preceding the Civil War.

Q: Before World War I in the United States, the term ____________________ currency meant the money the government printed, and nothing else.

Q: ____________________ is all media of exchange circulating in a country.

Q: A decline in total production lasting a minimum of two consecutive quarters defines a. stagflation. b. a recession. c. a mortgage crisis. d. all of the above.

Q: Check 21 allows a. anyone over the age of 21 to obtain a checking account. b. a discount on account servicing fees if more than 21 checks are written during the month. c. funds to remain in an account until 21 days after the check is written. d. using substitute checks to process checks electronically.

Q: To combat inflation, the government may institute any of the following policies EXCEPT a. tighten the money supply. b. lower taxes. c. allow interest rates to rise. d. a combination of a and c.

Q: The Emergency Banking Act of 1933 a. founded the system of central banking still used in the United States. b. established a bank holiday that closed all banks in the country for one month. c. expanded the monetary controls of the Federal Reserve. d. separated commercial banking from investment banking to protect assets.

Q: What causes stagflation? a. a stagnant economy b. high inflation c. high unemployment d. all of the above

Q: The Civil War in America brought monetary issues to a crisis point because a. state banks began to lose influence. b. rampant inflation threatened the entire economic system. c. the counterfeiting of money became widespread. d. all of the above.

Q: The second Bank of the United States a. was considered a great friend to state banks. b. bowed to political pressure and made no attempt to regulate credit and the money supply. c. was thought by Andrew Jackson to represent the advancement of the few at the expense of the many. d. gained strength throughout the life of its first charter, eventually being granted a charter renewal in 1836.

Q: The National Currency Act of 1863 did all of the following EXCEPT a. established the basic banking system in use today. b. established standards for currency. c. taxed state bank notes. d. made the printing of state bank notes unprofitable.

Q: The largest denomination of paper currency printed in the United States today is the a. one hundred dollar note. b. five hundred dollar note. c. one thousand dollar note. d. ten thousand dollar note.

Q: What was the most common medium of exchange in colonial America? a. paper money b. coins c. checks d. pieces of gold and silver

Q: During the mortgage and credit crises, the government did not intervene to rescue financial institutions on the brink of failure. a. True b. False

Q: A loosening of lending oversight standards contributed to the recent mortgage crisis. a. True b. False

Q: The largest denomination dollar note currently printed is the $100 note. a. True b. False

Q: Counterfeiting was not a problem when the government first began printing paper currency. a. True b. False

Q: The National Banking Act of 1864 founded an adaptable, flexible system of central banking for the United States. a. True b. False

Q: The National Banking Act of 1864 spelled the end of state banking systems in the United States. a. True b. False