Finance 100 Week 11 Quiz

Question 1 Finance is: Question 2 The primary goal of the financial manager of a profit-seeking organization is to: Question 3 _______________ is the study of how individuals prepare for financial emergencies, protect against premature death and the loss of property, and accumulate wealth over time. Question 4 An effective financial system needs which of the following: Question 5 In the United States, most money is created by: Question 6 If the interest rate is greater than 0%, then a dollar today is worth Question 7 Programs passed by the federal government in response to the financial crisis of include which of the following: Question 8 Under the authority of the Federal Reserve Act of 1913 Question 9 The seven-member board of the Federal Reserve that sets monetary policy is called Question 10 The least used monetary policy instrument used by the Fed is Selected Answer: Question 11 Under the Federal Reserve Act of 1913, the number of Federal Reserve districts established is Question 12 The capital stock of each Federal Reserve Bank Question 13 The members of the Fed Board of Governors are Question 14 Under the authority of the Federal Reserve Act of 1913 Question 15 Assume that a banking system must keep reserves of 20% against deposits. The bank receives a primary deposit of $20,000. What would be the maximum amount of loan that could be made by the system? Question 16 Debt management of the federal government does not include Question 17 Assume that a bank receives a primary deposit of $1,000, and the reserve requirement is 15%. Which of the following would reflect the asset side of the balance sheet after a maximum loan amount has just been made? Question 18 Price inflation Question 19 Bank reserves are not affected by Question 20 The Federal Reserve System cannot directly control