BUSI 1301 COMPLETE LATEST UPDATED STUDY
GUIDE A+ GRDAED TEXAS A&M UNIVERSITY.
Means by which the Fed controls the amount of money available in the economy
Correct Answer -monetary policy
Decisions to buy or sell U.S. Treasury bills (short-term debt issued by the U.S.
government) and other investments in the open market
Correct Answer -open market operations
the percentage of deposits that banking institutions must hold in reserve
Correct Answer -reserve requirement
the rate of interest the Fed charges to loan money to any banking institution to
meet reserve requirements
Correct Answer -discount rate
the authority to establish and enforce credit rules for financial institutions and
some private investors
Correct Answer -credit controls
the largest and oldest of all financial institutions, relying mainly on checking and
savings accounts as sources of funds for loans to businesses and individuals
Correct Answer -commercial banks
financial institutions that primarily offer savings accounts and make long-term
loans for residential mortgages; also called "thrifts"
Correct Answer -savings and loan associations (S&Ls)
,financial institutions that are similar to savings and loan associations but, like
credit unions, are owned by their depositors
Correct Answer -mutual savings banks
an insurance fund established in 1933 that insures individual bank accounts
Correct Answer -Federal Deposit Insurance Corporation (FDIC)
an agency that regulates and charters credit unions and insures their deposits
through its National Credit Union Insurance Fund
Correct Answer -National Credit Union Association (NCUA)
businesses that protect their clients against financial losses from certain
specified risks (death, accident, and theft, for example)
Correct Answer -insurance companies
managed investment pools set aside by individuals, corporations, unions, and
some nonprofit organizations to provide retirement income for members
Correct Answer -pension funds
an investment company that pools individual investor dollars and invests them in
large numbers of well-diversified securities
Correct Answer -mutual fund
firms that buy and sell stocks, bonds, and other securities for their customers and
provide other financial services
Correct Answer -brokerage firms
,underwrites new issues of securities for corporations, states, and municipalities
Correct Answer -investment banker
businesses that offer short-term loans at substantially higher rates of interest
than banks
Correct Answer -finance companies
any movement of funds by means of an electronic terminal, telephone, computer,
or magnetic tape
Correct Answer -electronic funds transfer (EFT)
the most familiar form of electronic banking, which dispenses cash, accepts
deposits, and allows balance inquires and cash transfers from one account to
another
Correct Answer -automated teller machine (ATM)
a system that permits payments such as deposits of withdrawals to be made to
and from a bank account by magnetic computer tape
Correct Answer -automated clearinghouses (ACHs)
the managing of short-term assets and liabilities
Correct Answer -working capital management
cash kept on hand by a firm to pay normal daily expenses, such as employee
wages and bills for supplies and utilities
Correct Answer -transaction balances
, an address, usually a commercial bank, at which a company receives payments
in order to speed collections from customers
Correct Answer -lockbox
temporary investment of "extra" cash by organizations for up to one year in U.S.
Treasury bills, certificates of deposit, commercial paper, or eurodollar loans
Correct Answer -marketable securities
short-term debt obligations the U.S. government sells to raise money
Correct Answer -Treasury bills (T-bills)
certificates of deposit issued by commercial banks and brokerage companies,
available in minimum amounts of $100,000, which may be traded prior to
maturity
Correct Answer -commercial certificates of deposit (CDs)
a written promise from one company to another to pay a specific amount of
money
Correct Answer -commercial paper
a market centered in London for trading U.S. dollars in foreign countries
Correct Answer -eurodollar market
credit extended by suppliers for the purchase of their goods and services
Correct Answer -trade credit
an arrangement by which a bank agrees to lend a specified amount of money to an
organization upon request
Correct Answer -line of credit
GUIDE A+ GRDAED TEXAS A&M UNIVERSITY.
Means by which the Fed controls the amount of money available in the economy
Correct Answer -monetary policy
Decisions to buy or sell U.S. Treasury bills (short-term debt issued by the U.S.
government) and other investments in the open market
Correct Answer -open market operations
the percentage of deposits that banking institutions must hold in reserve
Correct Answer -reserve requirement
the rate of interest the Fed charges to loan money to any banking institution to
meet reserve requirements
Correct Answer -discount rate
the authority to establish and enforce credit rules for financial institutions and
some private investors
Correct Answer -credit controls
the largest and oldest of all financial institutions, relying mainly on checking and
savings accounts as sources of funds for loans to businesses and individuals
Correct Answer -commercial banks
financial institutions that primarily offer savings accounts and make long-term
loans for residential mortgages; also called "thrifts"
Correct Answer -savings and loan associations (S&Ls)
,financial institutions that are similar to savings and loan associations but, like
credit unions, are owned by their depositors
Correct Answer -mutual savings banks
an insurance fund established in 1933 that insures individual bank accounts
Correct Answer -Federal Deposit Insurance Corporation (FDIC)
an agency that regulates and charters credit unions and insures their deposits
through its National Credit Union Insurance Fund
Correct Answer -National Credit Union Association (NCUA)
businesses that protect their clients against financial losses from certain
specified risks (death, accident, and theft, for example)
Correct Answer -insurance companies
managed investment pools set aside by individuals, corporations, unions, and
some nonprofit organizations to provide retirement income for members
Correct Answer -pension funds
an investment company that pools individual investor dollars and invests them in
large numbers of well-diversified securities
Correct Answer -mutual fund
firms that buy and sell stocks, bonds, and other securities for their customers and
provide other financial services
Correct Answer -brokerage firms
,underwrites new issues of securities for corporations, states, and municipalities
Correct Answer -investment banker
businesses that offer short-term loans at substantially higher rates of interest
than banks
Correct Answer -finance companies
any movement of funds by means of an electronic terminal, telephone, computer,
or magnetic tape
Correct Answer -electronic funds transfer (EFT)
the most familiar form of electronic banking, which dispenses cash, accepts
deposits, and allows balance inquires and cash transfers from one account to
another
Correct Answer -automated teller machine (ATM)
a system that permits payments such as deposits of withdrawals to be made to
and from a bank account by magnetic computer tape
Correct Answer -automated clearinghouses (ACHs)
the managing of short-term assets and liabilities
Correct Answer -working capital management
cash kept on hand by a firm to pay normal daily expenses, such as employee
wages and bills for supplies and utilities
Correct Answer -transaction balances
, an address, usually a commercial bank, at which a company receives payments
in order to speed collections from customers
Correct Answer -lockbox
temporary investment of "extra" cash by organizations for up to one year in U.S.
Treasury bills, certificates of deposit, commercial paper, or eurodollar loans
Correct Answer -marketable securities
short-term debt obligations the U.S. government sells to raise money
Correct Answer -Treasury bills (T-bills)
certificates of deposit issued by commercial banks and brokerage companies,
available in minimum amounts of $100,000, which may be traded prior to
maturity
Correct Answer -commercial certificates of deposit (CDs)
a written promise from one company to another to pay a specific amount of
money
Correct Answer -commercial paper
a market centered in London for trading U.S. dollars in foreign countries
Correct Answer -eurodollar market
credit extended by suppliers for the purchase of their goods and services
Correct Answer -trade credit
an arrangement by which a bank agrees to lend a specified amount of money to an
organization upon request
Correct Answer -line of credit
