322-11

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Author:
SAngell3
ID:
222697
Filename:
322-11
Updated:
2013-06-06 13:38:51
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322 11
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Description:
322-11
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  1. The federal funds rate tends to be stable on a daily basis, moving closely with other money market rates.  

    A) True  
    B) False
    B) False
  2. Under the lagged reserve accounting system currently employed by the Federal Reserve System to calculate transaction deposit reserve requirements, the reserve computation and reserve maintenance periods overlap only partially.  

    A) True  
    B) False
    B) False
  3. Correspondent deposits at large banks are outside of the federal funds market.  

    A) True  
    B) False
    B) False
  4. A check drawn on a bank's reserve account at the Federal Reserve Bank in its district is payable in 3 days.  

    A) True  
    B) False
    B) False
  5. A primary use of bankers' acceptances is to finance the purchase of internationally traded goods while those goods are in transit.  

    A) True  
    B) False
    B) False
  6. During the credit crisis of 2007-2009, the FDIC set its U.S. deposit insurance fee for financially sound money-center banks at:  

    A) 6 cents per dollar.  
    B) 0.0004 cents per dollar.  
    C) 14 cents per $100.  
    D) zero.  
    E) none of the above
    B) 0.0004 cents per dollar.  
    (this multiple choice question has been scrambled)
  7. Small banks loan money in the federal funds market through a process called:  

    A) non-brokered direct lending.  
    B) correspondent rebooking.  
    C) brokering.  
    D) FEDWIRE.  
    E) none of the above
    B) correspondent rebooking.
    (this multiple choice question has been scrambled)
  8. Adjustable-rate CDs are financial instruments that:  

    A) A and C only  
    B) may renegotiate their interest rate three times.  
    C) may extend up to 36 months and maturity.  
    D) vary with interest rates.  
    E) none of the above
    C) may extend up to 36 months and maturity.
    (this multiple choice question has been scrambled)
  9. The Commercial Paper Funding Facility set up by the Federal Reserve during the financial crisis of 2007-2009 purchased:  

    A) 3-week paper.  
    B) 2-week paper.  
    C) 6-month paper.  
    D) all of the above  
    E) none of the above
    E) none of the above
  10. The Eurocurrency market:  

    A) is a market for foreign currency by domestic banks.  
    B) usually involves the physical transfer of money from one country to another.  
    C) only involves Eurodollars.  
    D) all of the above  
    E) A and B only  
    F) none of the above
    A) is a market for foreign currency by domestic banks.
    (this multiple choice question has been scrambled)

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