BaseFunding

tia asked:


1 Funds cannot be removed from this savings account until the end of a certain period of time
2 A type of loan used to buy real estate
3 The amount borrowed in a loan
4 The largest source of income for banks
5 Provide the most services and play the largest role in the economy of all types of lending institutions
6 Requires customers to use a PIN
7 Institutions that give installment loans to consumers
8 A feature of modern banking that allows you to transfer, deposit and withdraw money 24 hours a day
9 Type of bank which originally introduced NOW accounts
10 A banking system that only keeps a portion of the funds on hand and loans out the remainder

A. Fractional Reserve Banking
B. Principal
C. Automated Teller Machine
D. Debit Card
E. Commercial Banks
F. Savings Banks
G. Federal Reserve System
H. Credit Cards
I. Default
J. Stored Value Cards
K. Mortgage
L. Money Market Mutual Funds
M. Finance Companies
N. Interest
O. Certificate of Deposit
I think 3 is B and 6 is D

anna f asked:


1. When the Federal Reserve sells government bond to the public, it directly
A) Increases M1 and increases reserves of the commercial banking system
B) Increases M1, while reducing the reserves of the commercial banking system
C) Reduces the M1, while increasing the reserves of the commercial banking system
D) reduces the M1, and decreases the reserves of the commercial banking system

2. Jan Levinson takes her $2000 income from candle sells and places $500 in money market mutual funds and $1500 in her checking account. She then takes $500 from her checking account and transfers it to her savings account. What happens to M1 and M2?

Thank You

pinkisluv17 asked:


-Federal Reserve Banks lend to commercial banks.
-savings and loan associations lend to some builders.
-Federal Reserve Banks lend to large corporations.
-commercial banks lend to large corporations.

Commercial Loans to 65% of Value

Sixers asked:


Assuming this balance sheet is for a single commercial bank (In millions of $), calculate
a. required reserves and
b. excess reserves

Assets-
Reserves $100
Securities $50
Loans $250

Liabilities and Net worth-

Checkable deposits $400

Commercial Loans to 65% of Value

tia asked:


1 Funds cannot be removed from this savings account until the end of a certain period of time
2 A type of loan used to buy real estate
3 The amount borrowed in a loan
4 The largest source of income for banks
5 Provide the most services and play the largest role in the economy of all types of lending institutions
6 Requires customers to use a PIN
7 Institutions that give installment loans to consumers
8 A feature of modern banking that allows you to transfer, deposit and withdraw money 24 hours a day
9 Type of bank which originally introduced NOW accounts
10 A banking system that only keeps a portion of the funds on hand and loans out the remainder

A. Fractional Reserve Banking
B. Principal
C. Automated Teller Machine
D. Debit Card
E. Commercial Banks
F. Savings Banks
G. Federal Reserve System
H. Credit Cards
I. Default
J. Stored Value Cards
K. Mortgage
L. Money Market Mutual Funds
M. Finance Companies