Introduction to Careers in Finance
D9126 : 4. BANKING SERVICES Exam
With 100% Correct Answers
What are some advantages to putting your money in a saving account? - CORRECT
ANSWER✔✔Money will be safe
Money will earn interest
The Federal Reserve Bank's job is to _____. (Select all that apply.) - CORRECT ANSWER✔✔set
reserve levels for all commercial banks in the nation
decide the amount of depositor protection
regulate loan interest rates
Federal Deposit Insurance Corporation - CORRECT ANSWER✔✔created to offer security to bank
depositors
Federal Reserve Act - CORRECT ANSWER✔✔started the Federal Reserve Bank
National Currency and Bank Act - CORRECT ANSWER✔✔attempted to standardize banking
across the United States
Gramm-Leach-Bliley Act - CORRECT ANSWER✔✔deregulated banks, allowing them to offer
more financial products
The Federal Deposit Insurance Corporation was a direct result of the _____. - CORRECT
ANSWER✔✔stock market crash of 1929
, Unregulated financial service entities differ from those that are regulated because they do NOT
_____. (Select all that apply.) - CORRECT ANSWER✔✔manage the country's currency
protect depositors
There are an assortment of banking and financial services in our contemporary times, and not
all of them are regulated. In general, the less regulated a financial service business is, _____.
(Select all that apply.) - CORRECT ANSWER✔✔the higher the loan interest rate
the more the business will appeal to those without a low credit rating
Banks are dependent on small depositors who have checking and savings accounts, because
they use that money to invest. - CORRECT ANSWER✔✔True
Bank ABC is a successful small bank in a rural town in the United States. Two ways the bank
most likely makes the most money is from _____. (Select all that apply.) - CORRECT
ANSWER✔✔investing depositors' funds
car and personal loans
The legislation that created a central currency in the United States is _____. - CORRECT
ANSWER✔✔National Currency and Bank Act
conservatorship - CORRECT ANSWER✔✔situation where a judge appoints someone to manage
the affairs of a person or entity
derivative - CORRECT ANSWER✔✔a security whose price depends on (is derived from) the value
of another asset
insolvency - CORRECT ANSWER✔✔the condition of not being able to pay debts owed; a
situation where a business'total liabilities exceed the market value of its assets
D9126 : 4. BANKING SERVICES Exam
With 100% Correct Answers
What are some advantages to putting your money in a saving account? - CORRECT
ANSWER✔✔Money will be safe
Money will earn interest
The Federal Reserve Bank's job is to _____. (Select all that apply.) - CORRECT ANSWER✔✔set
reserve levels for all commercial banks in the nation
decide the amount of depositor protection
regulate loan interest rates
Federal Deposit Insurance Corporation - CORRECT ANSWER✔✔created to offer security to bank
depositors
Federal Reserve Act - CORRECT ANSWER✔✔started the Federal Reserve Bank
National Currency and Bank Act - CORRECT ANSWER✔✔attempted to standardize banking
across the United States
Gramm-Leach-Bliley Act - CORRECT ANSWER✔✔deregulated banks, allowing them to offer
more financial products
The Federal Deposit Insurance Corporation was a direct result of the _____. - CORRECT
ANSWER✔✔stock market crash of 1929
, Unregulated financial service entities differ from those that are regulated because they do NOT
_____. (Select all that apply.) - CORRECT ANSWER✔✔manage the country's currency
protect depositors
There are an assortment of banking and financial services in our contemporary times, and not
all of them are regulated. In general, the less regulated a financial service business is, _____.
(Select all that apply.) - CORRECT ANSWER✔✔the higher the loan interest rate
the more the business will appeal to those without a low credit rating
Banks are dependent on small depositors who have checking and savings accounts, because
they use that money to invest. - CORRECT ANSWER✔✔True
Bank ABC is a successful small bank in a rural town in the United States. Two ways the bank
most likely makes the most money is from _____. (Select all that apply.) - CORRECT
ANSWER✔✔investing depositors' funds
car and personal loans
The legislation that created a central currency in the United States is _____. - CORRECT
ANSWER✔✔National Currency and Bank Act
conservatorship - CORRECT ANSWER✔✔situation where a judge appoints someone to manage
the affairs of a person or entity
derivative - CORRECT ANSWER✔✔a security whose price depends on (is derived from) the value
of another asset
insolvency - CORRECT ANSWER✔✔the condition of not being able to pay debts owed; a
situation where a business'total liabilities exceed the market value of its assets
