Banking and Finance Test with Answers

Banking and Finance Test with Answers In a less-developed economy, cattle is widely accepted as payment for goods and services. Nearly all goods and services are priced in terms of cattle; however, cows vary in quality, become less valuable with age, and are difficult to move over long distances. Which of the following functions of money do cattle provide? - ️️ -1) medium of exchange 2) unit of account By the end of the nineteenth century, the United States banking system transitioned from - ️️ -a decentralized system of state banks to a centralized system of state and national banks. The First Bank of the United States had characteristics that differ from those of the modern central bank of the United States. Which of the following is one such characteristic of the First Bank of the United States? - ️️ -The First Bank of the United States was partially owned by foreign investors. How does fractional-reserve banking influence the money supply in the United States? - ️️ -Fractional-reserve banks issue depositor funds to borrowers, increasing the number of claims made on the same dollars. Which of the following is a lasting impact resulting from 20th-century banking reforms in the United States? - ️️ -Depositor funds are insured against potential loss in the event of a bank failure. Exchange-traded funds are popular investments that are easy to sell and have the potential to earn significant income for investors. Howe