Reference no: EM13780545

Question 1:

are a form of financial instrument through which corporations and governments borrow money from financial investors and promise to repay with interest.

a) Time deposits

b) Bonds

c) Money market funds

d) Certificates of deposit

Question 2:

If loans become far less available, then sectors of the economy that like business investment, home construction, and car manufacturing can be dealt a crushing blow.

 a) make loans to financial capital markets

 b) failed to diversify risk

 c) depend on borrowed money

 d) typically generate extraordinary gains

Question 3:

In uncertain economic times serves as a way of preserving economic value that can be spent or consumed in the future.

a) obtaining a credit card

b) owning gold

c) buying a new car

d) refinancing your home mortgage

Question 4:

In macroeconomics describes a situation where a bank's liabilities can be withdrawn in the short-term while its assets are being repaid in the long-term.

a) a negative net worth

b) diversification

c) an asset-liability time mismatch

d) reserve ratio

Question 5:

In macroeconomics describes a situation in which two people each want to exchange some good or service that the other can provide.

a) interrelated banking

b) a double coincidence of wants

c) the usefulness of money

d) a medium of exchange

Question 6:

Why do banks use a T-account,

a) the T-account separates the liabilities on the Left from assets on the right

b) the T-account separates assets on the Left from liabilities on the right

c) if a bank has become bankrupt, net worth will be shown as a zero on the balance sheet

d) the T-account ensures the final entry made under the assets column is bank reserves