BANKING AND FINTECH TEST 2 QUESTIONS WITH
DETAILED VERIFIED AND 100% ACCURATE ANSWERS
Which of the following statements is correct? Correct Answers The
Fed's profits are substantial, even when compared to the largest U.S.
corporations.
Under the Federal Reserve Act, which banks must be members of the
Federal Reserve System? Correct Answers 4)
national banks
Which of the following statements about the Depository Institutions
Deregulation and Monetary Control Act of 1980 is NOT correct?
Question options:
1)
It gave member and nonmember banks equivalent access to discount
loans.
2)
It halted the decline in Fed membership.
3)
It eliminated restrictions on interstate banking for member banks.
4)
It required all banks to maintain reserve deposits with the Fed. Correct
Answers 3
The margin requirement set by the Federal Reserve is the
,Question options:
1)
proportion of the purchase price of a security that an investor must pay
in cash.
2)
same thing as the required reserve ratio on deposits.
3)
difference banks must maintain between the value of their assets and the
value of their liabilities.
4)
difference between the interest rate banks may charge on loans and the
interest rate th Correct Answers 1
Members of the Board of Governors
Question options:
1)
serve one nonrenewable fourteen-year term.
2)
must resign when the President who has appointed them leaves office.
3)
serve for life or good behavior.
4)
may serve no more than three consecutive four-year terms. Correct
Answers 1
, What is the main reason the Fed operates in a political arena?
Question options:
1)
The members of the Board of Governors must run for reelection every
fourteen years.
2)
The members of the Board of Governors are typically prominent
politicians.
3)
It lacks a constitutional mandate.
4)
It is under the direct control of Congress. Correct Answers 3
The political business cycle theory predicts that
Question options:
1)
the president's appointments to the Board of Governors will usually be
politicians.
2)
the Fed acts to stimulate economic activity before an election.
3)
the Fed acts to promote the interests of the general public.
4)
DETAILED VERIFIED AND 100% ACCURATE ANSWERS
Which of the following statements is correct? Correct Answers The
Fed's profits are substantial, even when compared to the largest U.S.
corporations.
Under the Federal Reserve Act, which banks must be members of the
Federal Reserve System? Correct Answers 4)
national banks
Which of the following statements about the Depository Institutions
Deregulation and Monetary Control Act of 1980 is NOT correct?
Question options:
1)
It gave member and nonmember banks equivalent access to discount
loans.
2)
It halted the decline in Fed membership.
3)
It eliminated restrictions on interstate banking for member banks.
4)
It required all banks to maintain reserve deposits with the Fed. Correct
Answers 3
The margin requirement set by the Federal Reserve is the
,Question options:
1)
proportion of the purchase price of a security that an investor must pay
in cash.
2)
same thing as the required reserve ratio on deposits.
3)
difference banks must maintain between the value of their assets and the
value of their liabilities.
4)
difference between the interest rate banks may charge on loans and the
interest rate th Correct Answers 1
Members of the Board of Governors
Question options:
1)
serve one nonrenewable fourteen-year term.
2)
must resign when the President who has appointed them leaves office.
3)
serve for life or good behavior.
4)
may serve no more than three consecutive four-year terms. Correct
Answers 1
, What is the main reason the Fed operates in a political arena?
Question options:
1)
The members of the Board of Governors must run for reelection every
fourteen years.
2)
The members of the Board of Governors are typically prominent
politicians.
3)
It lacks a constitutional mandate.
4)
It is under the direct control of Congress. Correct Answers 3
The political business cycle theory predicts that
Question options:
1)
the president's appointments to the Board of Governors will usually be
politicians.
2)
the Fed acts to stimulate economic activity before an election.
3)
the Fed acts to promote the interests of the general public.
4)
