In which of the following scenarios are the Federal Reserve Banks most likely to intervene?

Several member banks run low on currency and coin. More test answers on https://studyhippo.com/04-03-how-does-the-fed-affect-me-quiz-52996/

Which of the following is an asset on the consolidated balance sheet of the Federal Reserve Banks?

Loans to commercial banks. More test answers on https://studyhippo.com/14-16-18-20-2/

How well did the Federal Reserve Banks perform during the great depression

Individual governors of the Federal Reserve Banks disagreed over policy and were unable to stop the depression More test answers on https://studyhippo.com/economics-chapter-16-test-answers/

In which of the following scenarios are the Federal Reserve Banks most likely to intervene? A. A committee forms to create new consumer protections laws B. A potential homeowner applies for a mortgage C. Several member banks run low on currency and coin D. Officials meet to debate presidential policy regarding economic expansion

C. Several member banks run low on currency and coin More test answers on https://studyhippo.com/04-03-how-does-the-fed-affect-me-quiz-2-53014/

The Federal Reserve Banks sell government securities to the public. As a result, the checkable deposits:

and reserves of commercial banks both decrease. More test answers on https://studyhippo.com/14-16-18-20-2/

The securities held as assets by the Federal Reserve Banks consist mainly of:

Treasury bills, Treasury notes, and Treasury bonds. More test answers on https://studyhippo.com/14-16-18-20-2/

Reserves must be deposited in the Federal Reserve Banks by:

all depository institutions, that is, all commercial banks and thrift institutions. More test answers on https://studyhippo.com/14-16-18-20-2/

The equation of exchange suggests that, if the supply and velocity of money remain unchanged, an increase in the physical volume of goods and services produced will cause: A) the unemployment rate to rise. B) the Federal Reserve Banks to sell securities in the open market. C) a decline in the price level. D) anautomaticbudgetdeficit.

C More test answers on https://studyhippo.com/chapter-19-quiz-55197/

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C.23 BANKIN’ – Flashcards 97 terms

Oscar Hall

97 terms

Preview

C.23 BANKIN’ – Flashcards

question

CASHIER'S CHECKS ARE SOMETIMES KNOWN AS OFFICER'S OR TREASURER'S CHECK

answer

TRUE

question

ONE DISADVANTAGE OF E-BANKING IS LEARNING THE SOFTWARE

answer

TRUE

question

THE PERSON WHO WRITES THE CHECK IS CALLED A DRAWEE

answer

FALSE

question

IF A MISTAKE IS MADE ON A CHECK, THE MAKER SHOULD DRAW ONE LINE THROUGH THE ERROR AND MAKE THE CORRECTION

answer

FALSE

question

A STOP PAYMENT ORDER CAN PROTECT THE PAYOR FROM LOSS RESULTING FROM STOLEN, LOST, OR INCORRECTLY DRAWN CHECKS

answer

TRUE

question

A LIMITED CHECK DOES NOT HAVE A TIME RESTRICTION AS TO WHEN IT CAN BE CASHED

answer

FALSE

question

MANY BANKS OFFER APPLICATIONS THAT CAN BE DOWNLOADED FOR FREE ON SMART PHONES AND COMPUTERS THAT WILL LET THE USER DEPOSIT CHECKS FROM ANY LOCATION

answer

TRUE

question

TO MAXIMIZE MONEY, BILLS SHOULD BE PAID IMMEDIATELY WHEN THEY ARRIVE

answer

FALSE

question

BANK STATEMENTS SHOULD BE CHECKED IMMEDIATELY ON RECEIPT AND SCANNED CAREFULLY FOR ERRORS

answer

TRUE

question

BLANK ENDORSEMENTS MAKE CHECKS PAYABLE TO THE BEARER

answer

TRUE

question

TRAVELERS' CHECKS ARE MOST OFTEN USED BY TRANSITORY PATIENTS ON VACATION WHO BECOME ILL AND NEED TO SEE A LOCAL PHYSICIAN

answer

TRUE

question

MONEY ORDERS ARE BEST WHEN A PERSON IS TRAVELING

answer

FALSE

question

BANKING BY MAIL IS NEVER DONE NOW THAT THE USE OF THE INTERNET IS SO PREVALENT

answer

FALSE

question

THERE IS NO DIFFERENCE BETWEEN A CERTIFIED CHECK AND A CASHIER'S CHECK.

answer

FALSE

question

THE THREE MOST COMMON TYPES OF BANK ACCOUNTS ARE CHECKING ACCOUNTS, SAVING ACCOUNTS, AND MONEY MARKET SAVING ACCOUNTS.

answer

TRUE

question

M-BANKING INVOLVES DOING BUSINESS USING A WIRELESS DEVICE, SUCH AS A CELL PHONE

answer

TRUE

question

THE MAKER IF THE CHECK I STHE PERSON TO WHOM IT IS WRITTEN

answer

FALSE

question

MOST PATIENTS WHO WRITE CHECKS TO PAY THEIR ACCOUNT WITH THEIR PHYSICIAN HAVE NO INTENTION OF FRAUD

answer

TRUE

question

ELECTRONIC PAYMENTS CAN BE MADE USING THE ROUTING AND ACCOUNT NUMBERS AND ARE PROCESSED AT BANKS LIKE REGULAR CHECKS

answer

TRUE

question

PETTY CASH FUNDS ARE USUALLY KEPT IN A LOCKED CASH DRAW OR BOX

answer

TRUE

question

COMPUTER POSTING SOFTWARE IS A TIMESAVER IN THE MEDICAL OFFICE

answer

TRUE

question

SINGLE-ENTRY BOOKKEEPING IS EXPENSIVE TO USE

answer

FALSE

question

A PROFIT AND LOSS STATEMENT IS ALSO KNOWN AS A STATEMENT OF INCOME AND EXPENSE

answer

TRUE

question

MOST EMPLOYERS MUST FILE A QUARTERLY FEDERAL TAX RETURN

answer

TRUE

question

IF A PEGBOARD CHECK WRITING SYSTEM IS NOT USED, WHAT IS THE FIRST THING THAT MUST BE DONE WHEN WRITING A CHECK

answer

FILL IN THE CHECK STUB

question

AN ACCURATELY COMPLETED PURCHASE ORDER HELPS TO ELIMINATE MISTAKES IN THE ORDER AND IN SHIPMENT

answer

TRUE

question

SOME MEDICAL OFFICES REQUIRE THE PERSON WHO HAS BEEN CHARGED WITH HANDLING FINANCIAL DUTIES TO BE BONDED

answer

TRUE

question

WHICH IF THE FOLLOWING IS NOT AN EXAMPLE OF A NEGOTIABLE INSTRUMENT

answer

CREDIT CARD

question

THE STAMP "FOR DEPOSIT ONLY" IS A RESTRICTIVE ENDORSEMENT

answer

TRUE

question

WHAT IS THE MOST COMMON REASON WHY THE ENDING BALANCES IN CHECKBOOKS AND BANK STATEMENTS USUALLY DO NOT MATCH

answer

TRANSACTIONS ARE MADE BETWEEN THE PREPARATION AND RECEIPT OF THE STATEMENT

question

WHICH TYPE OF BANK ACCOUNT WOULD BE BEST FOE MAINTAINING FUNDS THAT ARE USED FOR PAYING SEASONAL EXPENSES, SUCH AS INSURANCE PREMIUMS

answer

INTEREST-BEARING CHECKING THAT REQUIRED A HIGH MINIMUM BALANCE

question

IF YOU ARE NOT USING A PEGBOARD CHECK-WRITING SYSTEM, WHAT IS THE FIRST THING YOU MUST DO WHEN WRITING A CHECK

answer

FILL IN THE CHECK STUB

question

WHAT IS REPRESENTED BY THE NUMBER IN THE BALANCE FORWARD BOX ON THE CHECK STUB

answer

THE AMOUNT IN THE ACCOUNT BEFORE THE CHECK IS WRITTEN

question

IF YOU MAKE A MISTAKE WHEN WRITING A CHECK THE BEST PRATICE IS TO

answer

WRITE VOID ON IT AND FILE WITH CANCELED CHECKS

question

THE NAME OF THE FIRST ENDORSER OF THE CHECK INDICATES THE LAST PERSON WHO RECEIVED THE MONEY

answer

FALSE

question

WHY IS IT USUALLY POOR POLICY TO ACCEPT THIRD PARTY CHECKS FROM PATIENTS

answer

YOU CANNOT VERIFY THE RELIABILITY OF THE MAKER

question

IN WHICH SITUATION SHOULD THE BANK BE ASKED TO ISSUE A STOP PAYMENT ORDER ON A CHECK WRITTEN IN PAYMENT FOR A MEDICAL SUPPLY ORDER

answer

ALL THE ABOVE:THE CHECK WAS ACCIDENTALLY WRITTEN FOR MORE THAT WAS OWED,THE PAYMENT DID NOT REACH THE PAYEE WITHIN A REASONABLE AMOUNT OF TIME, THE VENDOR TO WHOM YOU WROTE THE CHECK REFUSES TO DELIVER YOUR ORDER

question

A ROUTINE NSF CHECK CAN BE FILED WITH THE DISTRICT ATTORNEY'S OFFICE WITHOUT EVER CONTACTING THE MAKER

answer

FALSE

question

NOTICE ABOUT AN NSF CHECK SHOULD BE SENT TO THE PATIENT BY REGISTERED MAIL

answer

FALSE

question

WHEN SHOULD YOU DEPOSIT CHECKS RECEIVED FROM PATIENTS AND OTHER SOURCES

answer

AS SOON AS POSSIBLE AFTER YOU RECEIVE THEM

question

WHICH OF THE FOLLOWING IS NOT ONE OF THE FOUR TYPES OF ENDORSEMENT

answer

QUALITY

question

WHY IS ACCEPTING THIRD-PARTY CHECKS FROM PATIENTS USUALLY POOR POLICY

answer

THE RELIABILITY OF THE MAKER CANNOT BE VERIFIED

question

IF A BANK CASHES A CHECK THAT IS LATER RETURNED FOR INSUFFICIENT FUNDS, WHOM DOES IT CHARGE TO RECOVER THE AMOUNT LOST

answer

THE CHECK'S MAKER

question

WHAT IS THE FIRST THING THE MEDICAL ASSISTANT SHOULD DO WHEN A CHECK IS RETURNED UNPAID BY THE BANK

answer

CONTACT THE PERSON WHO WROTE THE CHECK

question

WHICH TYPE OF BONDING COVERS ALL EMPLOYEES IN A FACILITY

answer

BLANKET POSITION BONDING

question

A CHECK DRAWN ON THE BANK'S OWN ACCOUNT SIGNED BY AN AUTHORIZED BANK OFFICAL IS CALLED A

answer

CASHIER'S CHECK

question

ANY INDIVIDUAL CORPORATION OR LEGAL PARTY WHO SIGNS A CHECK OR ANY TYPE OF NEGOTIABLE INTRUMENT IS CONSIDERED THE

answer

MAKER

question

ONLINE BANKING IS OFTEN CALLED

answer

E-BANKING

question

WHICH IF THE FOLLOWING WOULD MAKE AN INTRUMENT NONNEGOTIABLE

answer

IT IS PAYABLE TO THE ORDER OF PAYOR

question

WHAT ARE SOME OF THE ADVANTAGES OF INTEREST BANKING

answer

ALL THE ABOVE: CUSTOMERS DO NOT HAVE TO WAIT IN LINE, BANKING CAN BE DONE FROM HOME, ACCOUNT INFORMATION IS AVAILABLE 24 HOURS A DAY

question

WHAT MAKES A CHECK NEGOTIABLE

answer

- BE WRITTEN AND SIGNED BY A MAKER - CONTAIN A PROMISE OR ORDER TO PAY A SUM OF MONEY - BE PAYABLE ON DEMAND OR AT A FIXED FUTURE DATE - BE PAYABLE TO ORDER OR BEARER

question

A CAPTIAL SUM OF MONEY DUE AS A DEBT OR USED AS A FUND FOR WHICH INTEREST IS EITHER CHARGED OR PAID IS CALLED

answer

PRINCIPAL

question

THE TWO BALANCES THAT MUST BE RECONCILED ARE THE PATIENT'S ACCOUNT BALANCE AND PHYSICIAN'S CHECKBOOK BALANCE

answer

FALSE

question

THE COUNTRY IS DIVIDED INTO HOW MANY FEDERAL RESERVE DISTRICTS

answer

question

AN INSURED ACCOUNT REQUIRES A MINIMUM BALANCE THAT DRAWS INTEREST AT A HIGHER PERCENTAGE THAN A REGULAR SAVINGS ACCOUNT IS CALLED A _______ ACCOUNT

answer

MONEY MARKET SAVINGS

question

THE PART OF THE ABA NUMBER FOLOOWING THE DASH ON TOP IN THE FRACTION DESIGNATES

answer

NUMBER ISSUED TO EACH BANK FOR IDENTIFICATION PURPOSE

question

A PLAN IN WHICH PAYMENTS ARE TRANSFERRED USUALLY ELECTRONICALLY BY A PAYING AGENCY DIRECTLY TO THE ACCOUNT OF A RECIPIENT IS CALLED

answer

A DIRECT DEPOSIT

question

SOMETHING LEGALLY TRANSFERABLE TO ANOTHER PARTY IS CONSIDERED

answer

NEGOTIABLE

question

THE PERSON AUTHORIZED TO ACT AS THE AGENT WHEN EXECUTING A POWER OF ATTORNEY IS CALLED AN ATTORNEY

answer

IN FACT

question

THE CRIME OF FALSELY AND FRAUDULENTLY MAKING OR ALTERING A DOCUMENT IS CALLED ___.

answer

FORGERY

question

THE FIRST STEP IN WRITING A CHECK IS TO ___.

answer

FILL OUT THE INFORMATION ON THE CHECK STUB

question

A CHECK MADE TO PAYABLE TO "CASH" IS MOST COMMONLY USED IN THE PHYSICIAN'S OFFICE TO ___.

answer

REPLENISH PETTY CASH

question

IF THE MEDICAL ASSISTANT IS ALLOWED TO SIGN CHECKS ON THE PHYSICIAN'S BUSINESS ACCOUNT, HE OR SHE MUST SIGN A DOCUMENT AT THE BANK CALLED A ___.

answer

SIGNATURE CARD

question

WHICH OF THE FOLLOWING IS NOT AN EXAMPLE OF A NEGOTIABLE INSTRUMENT

answer

CREDIT CARD

question

IF THE MEDICAL ASSISTANT MAKES A MISTAKE WHEN WRITING A CHECK, THE BEST PRACTICE IS TO ___.

answer

WRITE "VOID" ON IT AND FILE IT WITH THE CANCELED CHECKS

question

THE FIRST THING THAT SHOULD BE DONE WHEN A NSF CHECK IS RECEIVED AT THE PHYSICIAN'S OFFICE IS TO ___.

answer

CALL THE PATIENT TO LET THE PERSON KNOW THAT THE CHECK WAS RETURNED

question

COMPLETE AND CORRECT FINANCIAL RECORDS ARE NECESSARY FOR

answer

ALL THE ABOVE: PROMPT BILLING AND COLLECTION, PROFESSIONAL FINANICAL PLANNING, ACCURATE REPORTING OF INCOME

question

A SYSTEM OF RECORDING CLASSIFYING AND SUMMARIZING FINANICAL TRANSACTIONS IS CALLED

answer

ACCOUNTING

question

CURRENCY AND CHECKS SHOULD BE DEPOSITED ONCE A WEEK

answer

FALSE

question

THE CHRONOLOGIC RECORD OF THE MEDICAL PRATICE IS THE ____ JOUNRNAL

answer

DAILY

question

CARDINAL RULES FOR BOOKKEEPING INCLUDE

answer

ALL THE ABOVE: GOOD PENMANSHIP, LEGIBLE RECORDS, STRAIGHT COLUMNS OF FIGURE

question

MINOR UNPREDICTABLE EXPENSES SHOULD BE PAID FROM

answer

PETTY CASH

question

THE FINANCIAL RECORDS OF ANY BUSINESS SHOULD ALWAYS SHOW

answer

ALL THE ABOVE: HOW MUCH HAS BEEN COLLECTED, HOW MUCH IS OWED, HOW MUCH WAS EARNED IN A GIVEN PERIOD

question

THE DISBURSEMENT JOURNAL SHOULD SHOW

answer

EVERY AMOUNT PAID OUT

question

WHICH OF THE FOLLOWING WORDS OR PHRASES CANNOT BE USED INTERCHANGEABLY WITH THE OTHERS

answer

INTEREST

question

A TRIAL BALANCE SHOULD BE DONE

answer

ONCE PER MONTH

question

WHICH STATEMENT BEST DESCRIBES THE RELATIONSHIP BETWEEN BOOKKEEPING AND ACCOUNTING

answer

ACCOUNTING IS A SUMMARY OF BOOKKEEPING ACTIVITIES

question

THE CASH BASIC SYSTEM OF ACCOUNTING USED BY MOST PHYSICIANS MEANS THAT ONE

answer

RECORDS CHARGES AS INCOME WHEN THE PAYMENT IS RECEIVED

question

THE PURPOSE OF THE DISBURSEMENT JOURNAL IS TO KEEP A RECORD OF THE AMOUNT

answer

PAID OUT FOR VARIOUS EXPENSES

question

WHICH ACCOUNTING SYSTEM HAS THE LEAST CHANCE OF ERRORS BECAUSE OF THE SMALL AMOUNT OF POSTING

answer

PEGBOARD

question

WHICH ACCOUNTING SYSTEM REQUIRES THE LEAST INITIAL EXPENSES AND TRAINING TO SET UP AND USE

answer

SINGLE ENTRY

question

IF YOU SUMMARIZED THE PHYSICIAN'S FINANCIAL SITUATION IN THE BASIC ACCOUNTING EQUATION, WHICH OF THE FOLLOWING WOULD BE INCLUDED IN THE LIABILITY COMPONENT

answer

AMOUNT OWED TO A MEDICAL SUPPLY COMPANY

question

AT THE END OF THE DAY YOU DISCOVER A NUMERIC ERROR ON AN ENCOUNTER FORM, ALL OF THE FOLLOWING ACTIONS SHOULD BE TAKEN EXCEPT

answer

ERASING THE ERROR CLEANLY BEFORE WRITING NEW NUMBERS

question

THE PURPOSE OF THE ACCOUNTS RECEIVABLE RATIO IS TO GIVE YOU INFORMATION ABOUT

answer

THE TOTAL AMOUNT THAT THE PATIENTS OWE THE PHYSICIAN AT ANY GIVEN TIME

question

ASSEST = LIABILITIES +

answer

PROPRIETORSHIP

question

DISBURSEMENTS IN A MEDICAL OFFICE MIGHT INCLUSE

answer

ALL THE ABOVE: RENT, UTILITIES, DUES

question

WHICH OF THE FOLLOWING IS NOT A COMMON SUMMARY REPORT

answer

INVOICE

question

FOR EVERY DISBURSMENT FROM THE PETTY CASH FUND, WHAT SHOULD BE COMPLETED

answer

VOUCHER

question

TO DETERMINE THAT THE BOOKS FOR THR PRATICE ARE IN BALANCE, THE MEDICAL ASSISTANT CAN PERFORM AN

answer

TRIAL BALANCE

question

W-2 FORMS SHOULD BE GIVEN TO ALL EMPLOYEES BEFORE WHAT DATE EACH YEAR

answer

JANUARY 31

question

ALL OF THE FOLLOWING ARE DETERMINANTS OF WITHHOLDING AMOUNTS EXCEPT

answer

INSURANCE DEDUCTIONS

question

WHICH OF THE FOLLOWING RECORDS MUST BE AVAILABLE FOR REVIEW BY THE IRS

answer

ALL THE ABOVE: SOCIAL SECURITY NUMBERS FOR EMPLOYEES, NUMBER OF WOTHHOLDING ALLOWANCES CLAIMED, AMOUNT OF GROSS SALARY

question

WHICH FORMI SUSED TO APPLY FOR A SOCIAL SECURITY CARD

answer

SS-5

question

THE TRANSMITTAL OF INCOME AND TAX STATEMENT MUST BE TRANSMITTED ANNUALLY USING FORM

answer

W-3

question

WHEN THE END OF MONTH ACCOUNTS RECEIVABLE FIGURE AGREES WITH THE FIGURE ARRIVED AT BY ADDING ALL THE ACCOUNT CARDS BALANCES THE ACCOUNTS ARE SAID TO BE

answer

IN BALANCE

question

WHICH OF THE FOLLOWING IS NOT A DRAWBACK TO THE SINGLE ENTRY ACCCOUNTING SYSTEM

answer

IT SATISFIES GOVERNMENTAL REPORTING REGULATIONS

question

THE PROPERTIES OWNED BY A BUSINESS ARE CALLED

answer

ASSESTS

STUDY

AP Human Geography Business Business Management Federal Reserve Banks

Business Test – Flashcards 101 terms

Rosa Sloan

101 terms

Preview

Business Test – Flashcards

question

Industry

answer

Segment of economy. Provides service to customes. Economic activity

question

Business

answer

Individuals or organizations trying to earn profit that satisfy peoples needs.

question

Entreprenuer

answer

Risk wealth, time, and effort to develop an innovative product or service with the hope of great profit

question

Product

answer

Good or service with tangible and intangible characteristics that provides satisfaction and benefits

question

Profit

answer

Difference between what it costs to make and the sell the product and what a customer pays for it

question

Stakeholders

answer

Stake in the success and outcomes of a business

question

Activities of business

answer

Management, Marketing, Finance

question

Management

answer

Focus on employees. Production and Manufacturing

question

Marketing

answer

Focus on satisfying peoples needs

question

Finance

answer

Primary responsibility of owners for using money more efficiently

question

Economics

answer

Distribution of resources for the production of goods and services within a social system

question

Macroeconomics

answer

Concentrates on the operation of a nations economy as a whole

question

Microeconomics

answer

Behaviors within organizations

question

Resources

answer

Natural Resources (land, forests, minerals) Human Resources (labor) Financial resources (capital)

question

Factors of Production

answer

Natural, human, and financial resources used to produce goods and services

question

Economic Systems

answer

How a society distributes its resources to produce goods and services

question

Communism

answer

An economic and political system in which the government makes almost all economic decisions and owns all the major factors of production. Consumers choice of goods and services is narrow. Government determines the supply and what is produced

question

Socialism

answer

Government owns and operates basic industries but individuals own must business.

question

Modified Capitalism

answer

Government intervenes with industries when needed

question

Capitalism

answer

Individuals own and operate majority of businesses providing goods and services

question

Pure Capitalism

answer

Less government regulations that modified capitalism. Free Market

question

Mixed Economies

answer

No country practices pure capitalism or pure socialism/communism. Most economic systems exists in mixed forms

question

Demand

answer

Number of goods and services consumers buy at a given price or time

question

Supply

answer

Number of products business will sell

question

Economic Cycles

answer

Inflation Recession Depression Unemployment

question

Consumer Price Index (CPI)

answer

Monthly statistics that measures inflation or deflation

question

Gross Domestic Product (GDP)

answer

Total value of final goods and services produced in a country in a given year

question

Business Ethics

answer

Principles and standards that determine acceptable conduct in business

question

Code of Ethics

answer

Formalized rules and standards that describe what a company expects of its employees

question

Sarbanes Oxley Act (SOX)

answer

Stiffened penalties for corporate fraud and securities fraud

question

Social Responsibility

answer

Business obligation to maximize its positive impact and minimize its negative impact of society

question

Corporate Social Responsibility

answer

The extent to which businesses meet the legal, ethical, economic and voluntary responsibilities placed on them by their stakeholders

question

International Business

answer

Buying, selling, and trading across national boundaries

question

Global Marketing

answer

Requires balancing global brands with the needs of local consumers

question

Why Nations Trade

answer

Acquisitions of raw materials and goods at favorable prices

question

Absolute Advantage

answer

A monopoly that exists when a country is the only source of an item, the only producer of an item, or a natural resource so it can be sustained

question

Comparative Advantage

answer

Basis of the most international trade, when a country specializes in products that it can supply more efficiently or at a lower cost than it can produce other items

question

Outsourcing

answer

Transferring

question

Exports

answer

Sale to foreign markets

question

Importing

answer

Foreign sources

question

Balance of Trade

answer

Difference in the value between what a nation exports and imports

question

Infrastructure

answer

Physical facilities support economic activities with include railroads, highways, ports

question

Import Tariff

answer

Tax levied by a nation on goods imported into the country

question

Quota

answer

A restriction on the number of units of a particular product that can be imported into a country

question

Embargo

answer

A prohibition on trade for a product

question

Dumping

answer

Act as a country/business selling products at less than what it costs to produce

question

World Trade Organization

answer

International organization dealing with the rules of trade between nations

question

General Agreement on Tariff (GATT)

answer

Replaced by the World Trade Organization

question

World Bank

answer

Nations to loan money to underdeveloped and developing countries

question

International Monetary Funds

answer

Eliminating trade barriers Fostering financial cooperation Producing short loans to member countries Functioning as a world central bank

question

Multinational Strategy

answer

Customizing products, promotion, and distribution according to cultural technological, regional, and national differences

question

Global Strategy

answer

Standardizing products

question

Sole Proprietorship

answer

Business owned and operated by 1 individual most common form of business in the US

question

Advantages of Sole Proprietorship

answer

Ease cost of formation Little government regulation Taxation Secrecy Distribution/Use of products

question

Disadvantages of Sole Proprietorship

answer

Unlimited liability Limited skills Lack of qualified employees Taxation

question

Partnership

answer

2 or more persons who carry on as co-owners

question

General Partnerships

answer

Management & Liability

question

Limited Partnership

answer

1 general partnership, who assumes unlimited liability, and at least 1 limited partner whose liability is limited to his/her investment in the business

question

Limited Liability

answer

means the liability for the debts of the business is limited to the amount the limited partner puts into the company. personal assets are not at risk

question

Articles of Partnership

answer

legal documents that set fourth the basic agreement between partners

question

Disadvantages of Partnerships

answer

Unlimited liability Taxation of partnerships

question

Corporations

answer

legal entities created by the state whose assets & liabilities are separate from its owners. typically owned by stockholders/shareholders

question

Articles of Incorporation

answer

legal documents fixed with basic information about the business with the appropriate state of office (often secretary of state)

question

S Corporations

answer

Unique government creation that looks like a corporation but it is taxed like sole partnerships

question

The Business Plan objectives

answer

Explanations of the business Analysis of competition Income/Expense estimates Secure a loan

question

Venture Capitalists

answer

Provide funding for a new business exchange ownership interest or stock

question

The Business PLan

answer

Step-by-step explanation of how it will achieve its goals. a must for a financial institution to loan you money

question

Management

answer

Achieve an organizations objectives, using resources effectively and efficiently

question

What managers do

answer

Utilizations of resources- achieve objectives Planning Organizing Staffing Directing Controlling

question

The Importance of Management

answer

Resource acquisition and coordination Resources: People Raw Materials Equipment Money Information

question

Mission

answer

Organizations purpose and philosophy

question

Organizational Structure

answer

The arrangement or relationships of positions within an organization

question

Organizational Culture

answer

Firms shared values, beliefs, and traditions, philosophies, rules, role models, for behavior developed over time

question

Operations Management

answer

Transforming resources into goods and services

question

Inputs

answer

Labor, materials, energy converted to outputs

question

Outputs

answer

Goal of output to be worth more than the cost of inputs

question

The debt ceiling is the maximum amount Congress lets the government borrow.

answer

True

question

The sum of all the money borrowed over the years and not yet repaid is the total fiscal debt.

answer

False; Federal debt

question

The debt ceiling is the maximum amount Congress lets the government lend to the public.

answer

False; the maximum amount Congress lets the government borrow.

question

The 12 Federal Reserve Banks are regional banks, privately owned by the member commercial banks in their individual districts.

answer

True

question

The federal government does not own the Federal Reserve Bank.

answer

True; the locals own the Federal Reserve Banks

question

The Federal Reserve does not regulate banks; only state regulatory agencies perform this function.

answer

False; The federal Reserve does regulate banks

question

State governments are actually the owners of the Federal Reserve Banks.

answer

False; Federal Reserve Banks are owned by the member commercial banks in their individual districts.

question

The Federal Reserve provides banking services to member banks and is the central bank of the U.S.

answer

True

question

The Fed is headed by a 50-member Board of Governors

answer

False; Headed by a 12-member Board of Governors.

question

The Federal Reserve Bank is in charge of both fiscal and monetary policy.

answer

False; Just monetary

question

The economy, as a system, represents the:

answer

Flow of resources from production through consumption.

question

In the broadest sense, economics studies the choices that:

answer

People, governments, and companies make in allocating resources.

question

From the business perspective, a key reason to study economics is to:

answer

Gain a better understanding of past business choices in order to make better future decisions.

question

A ________ is targeted to borrowers with low credit scores, high debt-to-income ratios, or signs of a reduced ability to repay the money they borrow.

answer

Subprime mortgage loan

question

Economics is divided into two core areas of study known as:

answer

Macroeconomics and microeconomics

question

A core goal for successful businesses to deliver value to customers while generating long-term profits.

answer

True

question

Value is the relationship between the price of carpet cleaning, for example, and the benefit that the service offers to the customer.

answer

True

question

Business drives up the standard of living for people worldwide, contributing to a higher quality of life.

answer

True

question

During the Industrial Revolution, the production process shifted from skilled artisans working in small workshops to semiskilled workers employed in huge factories.

answer

True

question

Henry Ford's focus on producing a consistent and quality product represented a shift from the production era to the relationship era.

answer

False; Marketing era to the relationship era

question

When providing products and services, the primary goal of nonprofit organizations is to ensure community interests are addressed.

answer

True

question

Factors of production are the resources a business needs to achieve its objectives.

answer

True

question

Human resources is a factor that includes the physical, intellectual, and creative contributions of everyone who works within an economy.

answer

True

question

Speedtomarket is the rate at which a company's competitors copy its new product innovations.

answer

False; Introducing a product in the market as soon as possible.

question

Its more important for a firm to launch a new product before its competitors do, than for the products to meet the needs of customers.

answer

False; Meet the needs of customers so that you don't make a product and have it not sell, therefore, spending money instead of profiting.

STUDY

Contractionary Fiscal Policy Economics Federal Reserve Bank Federal Reserve Banks Macroeconomics Quantity Demanded Exceeds Quantity Supplied

04.07 Module Four Exam – Flashcards 20 terms

Joel Boykin

20 terms

Preview

04.07 Module Four Exam – Flashcards

question

Use this image to answer the following question. When government sets a price for a good above equilibrium, there will be

answer

a surplus

question

What would most likely happen if Congress decreased taxes and increased spending?

answer

...

question

How does the president most directly influence the Federal Reserve System?

answer

Through appointments to the Board of Governors

question

Banks that are members of the Federal Reserve have the benefit of

answer

earning dividends from stock in the Federal Reserve

question

Which is an example of a natural monopoly?

answer

A single source for electricity in your community

question

From an Associated Press article on Venezuela dated January 22, 2008: "... troops are cracking down on the smuggling of food ... the National Guard has seized about 750 tons of food ... [President] Hugo Chàvez ordered the military to keep people from smuggling scarce items like milk ... He's also threatened to seize farms and milk plants ..." These actions were the result of a price ceiling on food. Which zone (represented by a letter) on the graph reflects this policy, and what does it create?

answer

Letter C; demand exceeds supply, resulting in a shortage

question

Why do governments regulate natural monopolies?

answer

To prevent prices from rising too high and to increase efficiency

question

The inflation rate is decreasing and unemployment is rising. The economy is likely in

answer

contraction

question

Lowering the discount rate can promote full employment because

answer

companies are more likely to expand and hire more workers

question

The country of Lilliput has low unemployment and high consumer spending, and small businesses are thriving. However, prices are starting to rise throughout the economy. What should Lilliput's government do to prevent inflation from happening?

answer

...

question

Which of the following circumstances usually comes before a period of economic contraction?

answer

Peak production

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In the diagram above, what will happen if the government sets the minimum wage at Point A?

answer

There will be a surplus of workers.

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Which of these is required to balance the budget for the year?

answer

Revenue equal to spending

question

Which of these is the result of a government-regulated natural monopoly?

answer

...

question

When a government spends more money in one year than it collects in taxes, there is a budget

answer

deficit

question

Use this image to answer the following question. When the economy is operating at point C, the U.S. Congress is most likely to follow

answer

...

question

What is the difference between a deficit and a surplus?

answer

A deficit results when more money is spent than is taken in; a surplus results when more money is taken in than is spent.

question

During a cold winter, there is a natural-gas shortage. The government sets a price ceiling on natural gas so that people can continue to afford heating. If the price ceiling remains in effect, what will happen?

answer

...

question

Consumers benefit from Federal Reserve oversight because they

answer

...

question

Inflation is skyrocketing, and prices are out of control. What are banks most likely to ask the Federal Reserve to do with regards to government bonds and reserve requirements? Be sure to explain why.

answer

The banks are most likely to ask the Fed's to raise interest rates, sell bonds on the open market, and raise the reserve ratio in order to decrease inflation. So, there will be less money in the hands of the people and less spending, over all.

STUDY

Cost And Availability Cost And Availability Of Credit Federal Open Market Committee Federal Reserve Banks Federal Reserve System Principles Of Economics: Microeconomics

Macroeconomics Chapter 32 25 terms

Jessica Forbes

25 terms

Preview

Macroeconomics Chapter 32

question

The Federal Reserve System is divided into:

answer

-12 districts

question

What function is money serving when you use it when you go shopping?

answer

-a medium of exchange

question

Joe deposits $200 in currency into his checking account at a bank. The deposit is treated as:

answer

-no change in the money supply because the $200 in currency has been converted to a $200 increase in checkable deposits

question

Which group aids the Board of Governors of the Federal Reserve System in conducting monetary policy?

answer

-Federal Open Market Committee

question

The Federal Open Market Committee (FOMC) of the Federal Reserve System is primarily for:

answer

-setting the Fed's monetary policy and directing the purchase and sale of government securities

question

Members of the Federal Reserve Board of Governor's are:

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-appointed by the President to staggered 14-year terms

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The use of a credit card is most similar to:

answer

-obtaining a short-term loan

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One major advantage of money serving as a medium of exchange is that it allows society to:

answer

-escape the complications of barter

question

The functions of money are to serve as a:

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-unit of account, store of value, and medium of exchange

question

When a consumer wants to compare the price of one product with another, money is primarily functioning as a:

answer

-unit of account

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The paper money or currency in the U.S. essentially represents:

answer

-a debt of the Federal Reserve System

question

How many members can serve on the Board of Governors of the Federal Reserve System?

answer

-7

question

One reason that \"near-monies\" are important is because:

answer

-they can be easily converted into money or vice versa, and thereby can influence the stability of the economy

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Checkable deposits are:

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-debts of commercial banks and savings institutions

question

The Federal Reserve System was established by the Federal Reserve Act of:

answer

-1913

question

The main function of the Federal Reserve System is to:

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-control the money supply

question

The M(1) money supply is composed of:

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-checkable deposits and currency in circulation

question

To keep high inflation from eroding the value of money, monetary authorities in the United States:

answer

-control the supply of money in the economy

question

The paper currencies of the U.S. are also called:

answer

-Federal Reserve notes

question

What function is money serving when you deposit money in a savings account?

answer

-a store of value

question

The Federal Reserve Banks are owned by the:

answer

-member banks

question

The Federal Reserve System consists of which of the following?

answer

-Board of Governors and the 12 Federal Reserve Banks

question

The basic requirement for an item to function as money is that it be:

answer

-generally accepted as a medium of exchange

question

Which of the following items are included in money supply M(2) but not M(1)?

answer

-savings deposits

question

The currency or money of the United States, like those of other countries, is:

answer

-token money

STUDY

Federal Open Market Committee Federal Reserve Banks Federal Reserve System Principles Of Economics: Macroeconomics Troubled Asset Relief Program

Macro Test Chapter 32 , 33 68 terms

Brandon Ruffin

68 terms

Preview

Macro Test Chapter 32 , 33

question

what function of money enables society to gain the benefits of geographic and labor specialization

answer

medium of exchange

question

paper money or currency in the us is essentially a debt of a

answer

government agency

question

the paper currencies of the us

answer

federal reserve notes

question

federal reserve banks are owned by

answer

member banks

question

money supply m1 does not include the currency held by

answer

commercial banks

question

what is most liquid

answer

checkable deposits

question

members of the federal reserve board of governers are appointed by the president to

answer

staggered 14 year terms

question

sets policy on the sale and purchase of government bonds by the fed

answer

federal open market committee

question

does the federal reserve system provide banking services to the general public

answer

question

what is one consequence of fractional reserve system

answer

bank runs

question

checkable deposits ar considered blank to banks

answer

liabilities

question

properties are considered blank to banks

answer

assets

question

a bank is in the position to make loans when required reserves are blank actual reserves

answer

less than

question

primary reason commercial banks must keep required reserves on deposit at the fed is to allow the fed to control the amount of

answer

bank lending

question

federal funds rate is the rate that banks pay for loans from

answer

other banks

question

equal tp excess reserved times the money multiplier

answer

maximum checkable deposit expansion

question

the multiple by which commercial banking system can expand the money supple equals the reciprocal of the

answer

reserve ratio

question

when bankers hold excess reserves, the money creating potential of the banking system

answer

decreases

question

money that is usable for buying and selling goods and services

answer

medium of exchange

question

society used monetary units as yardsticks for measuring rlative worth of goods

answer

unit of account

question

money that enables people to transfer purchasing power from the present to the future

answer

store of value

question

an assets ease with whivh it can be converted to cash with no purchasing power lost

answer

liquidity

question

what does the m1 consist of

answer

currency checkable deposits

question

cash and coins

answer

currency

question

all deposits in commercial banks or thrift institutions on whcih checks of any size can be drawn

answer

checkable deposits

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bills or coins for which the amount printed on the currency bears no relationship to the value of paper or metal

answer

token money

question

highly liquid financial assets that do not fully function as a medium of exchange but can easily be converted to currency or checkable deposits

answer

near monies

question

what does the m2 money supply include

answer

m1 noncheckable savings accounts small time deposits individual money market mutual fund balances

question

a deposit in a commercial bank or thrift institution on which interest payments are received

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savings account

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interest bearing accounts offered by commercial banks and thrift institutions that invest deposited funds into a variety of short term securities

answer

money market deposit account

question

an interest earning deposit in a commercial bank or thrift institution that invest deposited funds into a variety of short term securities

answer

time deposit

question

mutual funds that invest in short term securities by using the combined funds of individual shareholders to buy interest bearing short term credit instruments

answer

money market mutual funds

question

any form of currency that by law must be accepted by creditors for the settlement of a financial debt

answer

legal tender

question

what is another name for creditors

answer

lenders

question

the us central bank consisting of the board of governors and the 12 federal reserve banks, that controls the lending activity of banks and thrifts and thus the money supply

answer

federal reserve system

question

the seven member group that supervises and controls te money and banking system of the us

answer

board of governors

question

the 12 banks chartered by the us gov that collectively act as the central bank of the us

answer

federal reserve banks

question

set monetary policy and regulate the private banking system under the direction of the board of governors and federal open market committee

answer

federal reserve banks

question

12 member group that decides monetary policy and how it is executed through open market operations

answer

federal open market committee

question

high interest rate loans to home buyers with above average credit risk

answer

subprime mortgage loans

question

bonds that represent claims to all or part of the monthly mortgage payments from the pools of mortgage loans made by leaders to borrowers to help purchase residential property

answer

mortgage backed securities

question

the process of aggregating many individual financial debts into a pool and then issuing new securities backed by the pool

answer

securitization

question

federal program that authorized the us treasury tp loan up tp 700 billion to critical financial institutions and other us firms that were in extreme financial trouble

answer

troubled asset relief program

question

the possibility that individuals or institutions will change their behavior as the result of a contract or agreement

answer

moral hazard

question

banks supported by tax payer money

answer

quasi public banks

question

the value or purchasing powerr is blank related to the price level

answer

inversely

question

backed by the governments ability to keep value stable

answer

money supply

question

state and national banks that provide checking and savings accounts and make loans

answer

commercial banks

question

savings and loan, mutual savings, credit unions that offer checking and saving accounts and make loans

answer

thrifts

question

offer policies with which individuals pay premiums to insure against loss

answer

insurance companies

question

pool costumer deposits to purchase stocks or bonds

answer

mutual fund companies

question

collect savings from workers and then invest funds to pay retirement benefits

answer

pension funds

question

offer security advice and buy and sell stocks and bonds for clients

answer

securities firms

question

firms that help corporations and governments raise money by selling stocks and bonds

answer

investment banks

question

only a portion of checkable deposits are backed up by reserves of currency in bank vaults pr deposits at the central bank

answer

fractional reserve banking

question

a statement of assets, liabilities, and net worth of a firm or individual at some given time

answer

balance sheet

question

the currency a bank has on hand in its vault and cash drawers

answer

vault cash

question

the funds that each commercial bank and thrift institution must deposit eith its local federal reserve bank or hold as vault cash

answer

required reserves

question

reserve ratio

answer

required reserves divided by liabilities

question

what does excess reserves equal

answer

actual minus required

question

the interest rate that us banks charge one another on overnight loans made out of their excess reserves

answer

federal funds rate

question

the reserve ratio for all commercial banks is

answer

20 percent

question

the multiple of its excess reserves by which the banking system can expand checkable deposits and thus the money suoply by making new loans

answer

monetary multiplier

question

the money multiplier equals

answer

one divided by required reserve ratio

question

stored gold and gave a receipt to be used as money by public

answer

goldsmiths

question

maximum amount of new money created by a single dollar of excess reserves

answer

money multiplier

question

the use of borrowed money to magnify profits and losses

answer

leverage

question

does a $200 deposit into checking account create new money

answer

STUDY

Business Cycle Certificate Of Deposit Economic Growth Federal Reserve Banks History of the Americas Inflation And Deflation

Business Cycle and Great Depression – Flashcards 16 terms

Jennifer Hawkins

16 terms

Preview

Business Cycle and Great Depression – Flashcards

question

What are the 5 stages of the business cycle

answer

Prosperity, Inflation, recession, depression, recovery

question

What is prosperity

answer

Time of economic growth. People start making money so there is a high demand and low supply

question

What is inflation

answer

People make money so there are higher prices. However people cant afford products so they stop buying.

question

What is a recession

answer

Too many products and people are not buying. Companies cant afford to pay people so others are laid off

question

What is a depression

answer

People are not spending money because of fear of losing their jobs. Companies are not producing because no one is buying

question

What is recovery

answer

Prices stabilize and those who saved start spending again. More jobs but still high unemployment

question

What are the 2 basic economic principles

answer

A mixed economy is what Canada has and that means the government has some involvement in the economy. The other one is over productions when a company produces more good than they sold. The cut down production so less jobs

question

Explain the introduction of stocks

answer

To grow, companies made stocks and investors bought them think the company would do well. in 1920 investors bought on margin meaning they bought shares with 10% down payment to the bank

question

What happened on black tuesday

answer

The new York stock market crashed

question

What is the great depression

answer

An economic crisis that began in 1929

question

What is relief

answer

A relief camp was a place for the unemployed to work hard labor for small wages and a place to stay

question

What were the qualifications of a relief camp

answer

Live in an area for a year, prove you cant support yourself, turn in car, remove phone, register at unemployment office, Allow officer to investigate your home, and work on municipal project from time to time

question

What is riding the rails

answer

Men would jump on trains to get to the next stop so they can find a job. There were no jobs in prairies so they went to British Columbia

question

What happened in Vancouver relief camps

answer

Vancouver could not hold the influx of people so they made new rules

question

What were the new rules in the Vancouver relief camps

answer

older than 18 single and male, free transportation, If you leave you cant return, 44 hour work weeks for ¢20 a day

question

What is the On-To-Ottawa trek

answer

in 1935 1000 men left relief camps to protest the conditions

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