WORLD OF BUSINESS FINAL PAPER EXAM
SCRIPT TESTED QUESTIONS AND
VERIFIED SOLUTIONS
◉ Fiat money
Answer: a paper money not readily convertible to a precious
metal such as gold
◉ bartering
Answer: trading one good or service for another of similar value
◉ checking account (demand deposit)
Answer: money store in an account at a bank or other financial
institution that can be withdrawn without advance notices
◉ Savings accounts (time deposits)
Answer: accounts with funds that usually cannot be withdrawn
without advance notice
◉ money market accounts
Answer: accounts that offer higher interest rates than standard
bank rates but with greater restrictions
,◉ Certificates of deposit (CDs)
Answer: savings accounts that guarantee a depositor a set interest
rate over a specified interval as long as the funds are not
withdrawn before the end of the period-six months or one year,
for example.
◉ credit cards
Answer: means of access to pre-approved lines of credit granted
by a bank or finance company.
◉ reward cards
Answer: credit cards made available by stores that carry a benefit
to the user
◉ debit card
Answer: a card that looks like a credit card but works like a check;
using it results in a direct, immediate, electronic payment from
the cardholder's checking account to a merchant or third party.
◉ cryptocurrency
Answer: a digital exchange medium that users secure online
ledgers enabled by blockchain technology
◉ Federal Reserve Board
, Answer: An independent agency of the federal government
established in 1913 to regulate the nation's banking and financial
industry; also called the FED
◉ monetary policy
Answer: means by which the FED controls the amount of money
available in the economy
◉ Open market operations
Answer: decisions to buy or sell US Treasury bills (short-term
debt issued by the US government) and other investments in the
open market.
◉ reserve requirement
Answer: the percentage of deposits that banking institutions must
hold in reserve
◉ discount rate
Answer: the rate of interest the FED charges to loan money to any
banking institutions to meet reserve requirements.
◉ credit controls
Answer: The authority to establish and enforce credit rules for
financial institutions and some private investors.
SCRIPT TESTED QUESTIONS AND
VERIFIED SOLUTIONS
◉ Fiat money
Answer: a paper money not readily convertible to a precious
metal such as gold
◉ bartering
Answer: trading one good or service for another of similar value
◉ checking account (demand deposit)
Answer: money store in an account at a bank or other financial
institution that can be withdrawn without advance notices
◉ Savings accounts (time deposits)
Answer: accounts with funds that usually cannot be withdrawn
without advance notice
◉ money market accounts
Answer: accounts that offer higher interest rates than standard
bank rates but with greater restrictions
,◉ Certificates of deposit (CDs)
Answer: savings accounts that guarantee a depositor a set interest
rate over a specified interval as long as the funds are not
withdrawn before the end of the period-six months or one year,
for example.
◉ credit cards
Answer: means of access to pre-approved lines of credit granted
by a bank or finance company.
◉ reward cards
Answer: credit cards made available by stores that carry a benefit
to the user
◉ debit card
Answer: a card that looks like a credit card but works like a check;
using it results in a direct, immediate, electronic payment from
the cardholder's checking account to a merchant or third party.
◉ cryptocurrency
Answer: a digital exchange medium that users secure online
ledgers enabled by blockchain technology
◉ Federal Reserve Board
, Answer: An independent agency of the federal government
established in 1913 to regulate the nation's banking and financial
industry; also called the FED
◉ monetary policy
Answer: means by which the FED controls the amount of money
available in the economy
◉ Open market operations
Answer: decisions to buy or sell US Treasury bills (short-term
debt issued by the US government) and other investments in the
open market.
◉ reserve requirement
Answer: the percentage of deposits that banking institutions must
hold in reserve
◉ discount rate
Answer: the rate of interest the FED charges to loan money to any
banking institutions to meet reserve requirements.
◉ credit controls
Answer: The authority to establish and enforce credit rules for
financial institutions and some private investors.
