Question

QUESTION 5
A U.S. Federal Reserve Bank is a(n) __________ bank.
a. brokerage
b. central
c. investment
d. international
e. regulatory
2 points

QUESTION 6
A hard currency is extremely stable. Therefore, the value of one hard currency does not change much against the value of the other hard currencies.
True

False

2 points

QUESTION 7
All banks run the risk of not having enough funds on hand to meet their obligations to savers and investors. This type of risk is called __________ risk.
a. reputation
b. strategic
c. operational
d. liquidity
e. efficiency
2 points

QUESTION 8
All of the money readily available to the public, such as cash and checking accounts, is referred to as
a. an operating target.
b. commodity money.
c. M1.
d. M3.
e. an open money supply.
2 points

QUESTION 9
April 1992 was the last time the Federal Reserve System changed the amount of cash that banks must have on hand to cover deposit obligations to customers. This change was a change to
a. the discount rate.
b. the federal funds rate.
c. operating targets.
d. M1.
e. reserve requirements.
2 points

QUESTION 10
As banks increase their equity capital in order to balance the risk in their behavior, the __________ will put pressure on the bank to reduce risk taking.
a. banks’ clients
b. depositors
c. international bank regulators
d. shareholders
e. federal government

Answer 1

Here are the answers to your questions:

**QUESTION 5**
A U.S. Federal Reserve Bank is a(n) **b. central** bank.

**QUESTION 6**
A hard currency is extremely stable. Therefore, the value of one hard currency does not change much against the value of the other hard currencies.
**True**

**QUESTION 7**
All banks run the risk of not having enough funds on hand to meet their obligations to savers and investors. This type of risk is called **d. liquidity** risk.

**QUESTION 8**
All of the money readily available to the public, such as cash and checking accounts, is referred to as **c. M1**.

**QUESTION 9**
April 1992 was the last time the Federal Reserve System changed the amount of cash that banks must have on hand to cover deposit obligations to customers. This change was a change to **e. reserve requirements**.

**QUESTION 10**
As banks increase their equity capital in order to balance the risk in their behavior, the **d. shareholders** will put pressure on the bank to reduce risk taking.

Feel free to ask if you have more questions!