Business Administration Exam
queries and answers graded A+
Finance - ANS✅✅the study of money; how it's made, how it's lost, and how it's managed
Money - ANS✅✅anything generally accepted in exchange for goods and services
What are the characteristics of money? - ANS✅✅Acceptability, Divisibility, Portability, Stability,
Durability, Difficulty to counterfeit
Money Market Accounts - ANS✅✅accounts that offer higher interest rates than standard bank
rates but with greater restrictions
Certificates of Deposits - ANS✅✅savings accounts that guarantee a depositor a set interest rate
over a specifi ed interval as long as the funds are not withdrawn before the end of the period—six
months or one year, for example
Federal Reserve Board - ANS✅✅an independent agency of the federal government established in
1913 to regulate the nation's banking and fi nancial industry
What are the four responsibilities of the Federal Reserve Board? - ANS✅✅(1) to control the supply
of money, or monetary policy;
(2) to regulate banks and other financial institutions;
(3) to man- age regional and national checking account procedures, or check clearing; and
(4) to supervise the federal deposit insurance programs of banks belonging to the Federal Reserve
System
Monetary Policy - ANS✅✅means by which the Fed controls the amount of money available in the
economy
Open Market Operations - ANS✅✅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
, Reserve Requirement - ANS✅✅the percentage of deposits that banking institutions must hold in
reserve
Discount Rate - ANS✅✅the rate of interest the Fed charges to loan money to any banking
institution to meet reserve requirements
Credit Controls - ANS✅✅the authority to establish and enforce credit rules for fi nancial
institutions and some private investors
Mutual Funds - ANS✅✅an investment company that pools individual investor dollars and invests
them in large numbers of well- diversifi ed securities
Brokerage Firms - ANS✅✅firms that buy and sell stocks, bonds, and other securities for their
customers and provide other fi nancial services
Investment Banker - ANS✅✅underwrites new issues of securities for corporations, states, and
municipalities
Finance Companies - ANS✅✅businesses that offer short-term loans at substantially higher rates of
interest than banks
Marketing - ANS✅✅a group of activities designed to expedite transactions by creating,
distributing, pricing, and promoting goods, services, and ideas
Exchange - ANS✅✅the act of giving up one thing (money, credit, labor, goods) in return for
something else (goods, services, or ideas)
What are the functions of marketing? - ANS✅✅Selling
Transporting
Storing
Grading
Financing
Marketing Research
Risk Taking
queries and answers graded A+
Finance - ANS✅✅the study of money; how it's made, how it's lost, and how it's managed
Money - ANS✅✅anything generally accepted in exchange for goods and services
What are the characteristics of money? - ANS✅✅Acceptability, Divisibility, Portability, Stability,
Durability, Difficulty to counterfeit
Money Market Accounts - ANS✅✅accounts that offer higher interest rates than standard bank
rates but with greater restrictions
Certificates of Deposits - ANS✅✅savings accounts that guarantee a depositor a set interest rate
over a specifi ed interval as long as the funds are not withdrawn before the end of the period—six
months or one year, for example
Federal Reserve Board - ANS✅✅an independent agency of the federal government established in
1913 to regulate the nation's banking and fi nancial industry
What are the four responsibilities of the Federal Reserve Board? - ANS✅✅(1) to control the supply
of money, or monetary policy;
(2) to regulate banks and other financial institutions;
(3) to man- age regional and national checking account procedures, or check clearing; and
(4) to supervise the federal deposit insurance programs of banks belonging to the Federal Reserve
System
Monetary Policy - ANS✅✅means by which the Fed controls the amount of money available in the
economy
Open Market Operations - ANS✅✅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
, Reserve Requirement - ANS✅✅the percentage of deposits that banking institutions must hold in
reserve
Discount Rate - ANS✅✅the rate of interest the Fed charges to loan money to any banking
institution to meet reserve requirements
Credit Controls - ANS✅✅the authority to establish and enforce credit rules for fi nancial
institutions and some private investors
Mutual Funds - ANS✅✅an investment company that pools individual investor dollars and invests
them in large numbers of well- diversifi ed securities
Brokerage Firms - ANS✅✅firms that buy and sell stocks, bonds, and other securities for their
customers and provide other fi nancial services
Investment Banker - ANS✅✅underwrites new issues of securities for corporations, states, and
municipalities
Finance Companies - ANS✅✅businesses that offer short-term loans at substantially higher rates of
interest than banks
Marketing - ANS✅✅a group of activities designed to expedite transactions by creating,
distributing, pricing, and promoting goods, services, and ideas
Exchange - ANS✅✅the act of giving up one thing (money, credit, labor, goods) in return for
something else (goods, services, or ideas)
What are the functions of marketing? - ANS✅✅Selling
Transporting
Storing
Grading
Financing
Marketing Research
Risk Taking
