DSST Money & Banking questions well answered graded A+ 2023

DSST Money & BankingFiat Money - correct answer Money that isn't tied to reserves such as gold, rather is guaranteed by the government's trustworthiness. Has no intrinsic value. Exists in currency bills form and bank deposits. M1 - correct answer The sum of all money held by businesses and individuals (incl. traveler's checks) and checkable deposits. M2 - correct answer The category that contains all funds included in M1, as well as savings deposits, small-time deposits, money market funds, and other deposits. M3 - correct answer The classification of money that includes M2 as well as long-term repurchase agreements held by banks. Fannie Mae - correct answer The mortgage association that mostly buys mortgages from banks to free up capital. Ginnie Mae - correct answer The government association that guarantees high-risk mortgages. Freddie Mac - correct answer The Corporation that uses global capital markets to provide support for low-cost mortgages. Credit Union - correct answer This institution mainly makes consumer loans and accepts savings deposits. Usually owned by a group or employees of a firm. Members basically loan money to one another. Interest are low, usually used for emergencies by its members. Mutual fund - correct answer These companies start funds that they sell to investors. Deposit Monetary Control Act 1980 - correct answer This deregulation act was created to counter the trend of disintermediation. Established the FDIC.