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Banking

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Which of the following do banks not do?

When you give money to a bank, you are what?

How much does the FDIC insure individual accounts for?

What does the FDIC stand for?

What is the primary role of the FDIC?

What role does the board of directors of a bank play?

Individual banks issue

When you deposit money in a bank, where does it eventually go?

Which of the following is not a primary use for deposits?

Where do banks get loans?

What is the principle on a loan?

When a bank uses 100% reserve banking, which of the following remains unaffected?

When a bank uses fractional reserve banking, which of the following remains unaffected?

The percentage of deposits that banks are required to hold in reserve is called the

What do you call deposits that are covered by cash?

What do you call deposits that are covered by loans?

What are the two items listed on a balance sheet?

What is the equation for the money multiplier?

What is the total change in the money supply from a $10,000 initial deposit if the reserve rate is 50%?

Who primarily controls the money supply?

How does the public have a small degree of control over the money supply?

Which of the following is not a method used by the Fed to control the money supply?

What does the Fed do when it performs open market operations?

What does the Fed do when it manipulates the federal funds interest rate?

What does the Fed do when it manipulates the reserve requirement?

What is the effect of an increase in the federal funds interest rate on the money supply?

What is the effect of an increase in the reserve requirement on the money supply?

What is the effect of the Fed selling bonds on the money supply?

What is the effect of the Fed buying bonds on the money supply?

Which of the following is not an open market operation?

Who issues the bonds sold by the Fed?

Who back the bonds sold by the Fed?

Who backs the dollar?

What type of money is the dollar?

How often does the Fed perform open market operations?

What is the most important theoretical concept behind the effectiveness of fiscal policy?

If the Fed increases the federal funds interest rate, banks are more likely to do what?

What body or agency prints money?

Which of the following is not directly controlled under the US central banking system?

Which of the following does not provide safety to the US banking system?

Which of the following do individual banks not directly regulate?

What is the most powerful body in the control of the money supply?

Which of the following best describes how banks make loans?

What is the primary source of income for banks?

When a bank cannot cover money demanded by depositors, where does it go to get a loan?

Which of the following best describes bank systems?

Why is the US banking system central?

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