Money and Banking

5 Written Questions

1. interest that is paid on the original amount of the loan and any accumulated interest
2. banks that were originally chartered to lend money for building homes
3. banks that are inadequately financed and have a high rate of failure
4. cooperative lending associations established to benefit its members
5. insures bank deposits up to $250,000

5 Matching Questions

1. interest
2. mortgage
3. commercial bank
4. simple interest
5. fiat

1. a price paid for the use of borrowed money
2. b interest that is paid on the original amount of the loan/principal only
3. c loan that is used to buy real estate/homes
4. d money that has value because the government has ordered it an acceptable means to pay debts
5. e bank that would traditionally cater to businesses

5 Multiple Choice Questions

1. Anti-Federalist who supported state-chartered banks
   1. interest
   2. credit union
   3. Federal Reserve
   4. Thomas Jefferson
2. banking system that keeps only a fraction of its funds on hand and lends out the remainder
   1. simple interest
   2. fractional reserve system
   3. interest
   4. Federal Reserve
3. difficult to expand the money supply
   1. disadvantages of gold standard
   2. advantages of gold standard
   3. wildcat banks
   4. Alexander Hamilton
4. entitles owner to buy goods and services based on the owner's promise to pay for those goods and services in the future
   1. credit card
   2. credit union
   3. debit card
   4. FDIC
5. the original amount of a loan, amount of money borrowed
   1. money
   2. principal
   3. fiat
   4. FDIC

5 True/False Questions

1. default → money that has value because the government has ordered it an acceptable means to pay debts

   True        False

2. barter → the direct exchange of goods and services for another

   True        False

3. commodity → anything that serves as a medium of exchange, a unit of account, and a store of value

   True        False

4. debit card → a card used to withdraw money from a checking account

   True        False

5. representative money → can be exchanged for something of value

   True        False