FIN 100 – QUIZ 2

“� � �   Question 1   � � �   � � � Our system of national banks:      � � � � � �   � � � � � � � � �   “� � �   Question 2   � � �   � � � Another name for an open-end investment company is a: � � �   � � � � � �   � � � � � � � � �   “� � �   Question 3   � � �   � � � _______________ provide loans directly to consumers and businesses and help borrowers obtain mortgage loans on real property. � � �   � � � � � �   � � � � � � � � �   “� � �   Question 4   � � �   � � � Legislation that provided for the separation of commercial banking and investment banking activities in the United States is called � � �   � � � � � � � � � � � �   “� � �   Question 5   � � �   � � � The primary purpose of this Act was to aid the savings and loan industry � � �   � � � � � �   � � � � � � � � �   “� � �   Question 6   � � �   � � � The item on the liabilities and equity section of a bank’s balance sheet that represents the smallest proportion of bank’s assets is: � � �   � � � � � �   � � � � � � � � �   “� � �   Question 7   � � �   � � � The likelihood that borrowers are ill and would not be able to make interest and principal payments is an example of: � � �   � � � � � �   � � � � � � � � �   “� � �   Question 8   � � �   � � � The item on the liabilities and equity section of a bank’s balance sheet that represents the largest proportion of a typical bank’s assets is: � � �   � � � � � �   � � � � � � � � �   “� � �   Question 9   � � �   � � � The Monetary Control Act: � � �   � � � � � �   � � � � � � � � �   “� � �   Question 10   � � �   � � � During the colonial period in the nation’s history, banks depended on: � � �   � � � � � �   � � � � � � � � �   “� � �   Question 11   � � �   � � � The Board of Governors: � � �   � � � � � �   � � � � � � � � �   “� � �   Question 12   � � �   � � � The ___________________ conducts monetary policy for the twelve European countries that formed the European Monetary Union and adopted the euro as their common currency at the beginning of 1999. � � �   � � � � � �   � � � � � � � � �   “� � �   Question 13   � � �   � � � Approximately __________ of the nation’s commercial banks are members of the Fed. � � �   � � � � � �   � � � � � � � � �   “� � �   Question 14   � � �   � � � The effect of an increase of required reserves by the Fed is: � � �   � � � � � �   � � � � � � � � �   “� � �   Question 15   � � �   � � � __________________ become the most important and effective means of monetary and credit control. � � �   � � � � � �   � � � � � � � � �   “� � �   Question 16   � � �   � � � The members of the Fed Board of Governors are: � � �   � � � � � �   � � � � � � � � �   “� � �   Question 17   � � �   � � � ____________________________ prohibits discrimination in the granting of credit on the basis of sex, marital status, race, color, religion, national origin, age, or receipt of public assistance. � � �   � � � � � �   � � � � � � � � �   “� � �   Question 18   � � �   � � � ____________________________ requires disclosure of the finance charge and the annual percentage rate of credit along with certain other costs and terms to permit consumers to compare the prices of credit from differing sources. � � �   � � � � � �   � � � � � � � � �   “� � �   Question 19   � � �   � � � A central bank serves the nation: � � �   � � � � � �   � � � � � � � � �   “� � �   Question 20   � � �   � � � The Federal Open Market Committee:

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