Financial Institutions & Markets – Exam 3, 2026 – Study Material and
Practice Questions
____________ are offered to bank customers who desire to use debit cards and write checks
against their account.
a. Time deposit accounts
b. CDs
c. Demand deposit accounts
d. Money market deposit accounts - correct answer ✔✔ c. Demand deposit accounts
The intent of federal funds transactions is to
a. correct short-term fund imbalances experienced by banks.
b. correct long-term fund imbalances experienced by banks.
c. serve as a permanent source of bank capital.
d. serve as the primary depository source of funds. - correct answer ✔✔ a. correct short-term
fund imbalances experienced by banks.
Which of the following is true?
a. The primary credit lending rate is set by the president of the United States.
b. The federal funds rate is set by the president of the United States.
c. The primary credit lending rate is set by commercial banks.
d. The primary credit lending rate is set at a level above the federal funds rate.
e. A and B - correct answer ✔✔ d. The primary credit lending rate is set at a level above the
federal funds rate.
Practice Questions
____________ are offered to bank customers who desire to use debit cards and write checks
against their account.
a. Time deposit accounts
b. CDs
c. Demand deposit accounts
d. Money market deposit accounts - correct answer ✔✔ c. Demand deposit accounts
The intent of federal funds transactions is to
a. correct short-term fund imbalances experienced by banks.
b. correct long-term fund imbalances experienced by banks.
c. serve as a permanent source of bank capital.
d. serve as the primary depository source of funds. - correct answer ✔✔ a. correct short-term
fund imbalances experienced by banks.
Which of the following is true?
a. The primary credit lending rate is set by the president of the United States.
b. The federal funds rate is set by the president of the United States.
c. The primary credit lending rate is set by commercial banks.
d. The primary credit lending rate is set at a level above the federal funds rate.
e. A and B - correct answer ✔✔ d. The primary credit lending rate is set at a level above the
federal funds rate.
