FIN 100 QUIZ 2(1)

“� � �   Question 1 � � �   � � � An organization that provides loans directly to consumers and businesses or aid individuals in obtaining financing for durable goods is called a (n) � � �   � � � � � �   � � � � � � � � �   “� � �   Question 2 � � �   � � � The item on the assets side of a bank’s balance sheet that represents the largest proportion of bank assets is: � � � � � � � � �   � � � � � � � � �   “� � �   Question 3 � � �   � � � Legislation that provided for the separation of commercial banking and investment banking activities in the United States is called     � � � � � �   � � � � � � � � �   “� � �   Question 4 � � �   � � � Commercial banks obtain the bulk of their loanable funds from: � �       � � � � � �   � � � � � � � � �   “� � �   Question 5 � � �   � � � The Monetary Control Act: � � � � � � � � �   � � � � � � � � �   “� � �   Question 6 � � �   � � � During the colonial period in the nation’s history, banks depended on:     � � � � � �   � � � � � � � � �   “� � �   Question 7 � � �   � � � The holding-company device to control two or more commercial banks: � �       � � � � � �   � � � � � � � � �   “� � �   Question 8 � � �   � � � Our system of national banks:      � � � � � �   � � � � � � � � �   “� � �   Question 9 � � �   � � � _______________ provide loans directly to consumers and businesses and help borrowers obtain mortgage loans on real property. � � � � � �   � � � � � � � � �   “� � �   Question 10 � � �   � � � Another name for an open-end investment company is a: � � �   � � � � � �   � � � � � � � � �   “� � �   Question 11   � � �   � � � 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 12   � � �   � � � The members of the Fed Board of Governors are: � � �   � � � � � �   � � � � � � � � �   “� � �   Question 13   � � �   � � � The Fed shares its depository examining functions with: � � �   � � � � � �   � � � � � � � � �   “� � �   Question 14   � � �   � � � Approximately __________ of the nation’s commercial banks are members of the Fed. � � �   � � � � � �   � � � � � � � � �   “� � �   Question 15   � � �   � � � The __________________, passed in 1968, requires the clear explanation of consumer credit costs and garnishment procedures (taking wages or property by legal means) and prohibits overly high-priced credit transactions. � � �   � � � � � �   � � � � � � � � �   “� � �   Question 16   � � �   � � � The Federal Reserve Banks are owned by: � � �   � � � � � �   � � � � � � � � �   “� � �   Question 17   � � �   � � � The dynamic actions of the Federal Reserve System: � � �   � � � � � � � � � � � �   “� � �   Question 18   � � �   � � � The effect of an increase of required reserves by the Fed is: � � �   � � � � � �   � � � � � � � � �   “� � �   Question 19   � � �   � � � ____________________________ 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 20   � � �   � � � The Federal Open Market Committee:

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