Unlock document.
This document is partially blurred.
Unlock all pages and 1 million more documents.
Get Access
Chapter 20 - Money, Financial Institutions, and the Federal Reserve
301. The __________ primarily provides for the financing of economic development
projects throughout the world.
A. International Monetary Fund
B. International Reserve Bank
C. World Bank
D. World Development Authority
302. The World Bank provides funding for:
A. the developed nations in Europe and Asia.
B. firms that want to participate in international trade but lack foreign exchange.
C. multinational corporations that have a strong credit rating.
D. projects to improve the standard of living in less-developed nations.
303. Which of the following helps to provide for the smooth flow of money between
nations?
A. International Monetary Fund
B. Foreign Exchange Bank
C. World Bank
D. International Exchange Center
20-104
315. Chipper's Golf Resort is in the process of purchasing rare Kauri wood from New
Zealand to be made into an impressive mantle on the fireplace of its new clubhouse.
Before disbursing payment to the New Zealand dealer, the director of the construction
project is concerned about the timeliness of delivery as well as the quality of the slab of
wood once it is delivered. As the representative of Chipper's bank, you suggest that the
Golf Resort sign a(n):
A. Authorization of Conditional Acceptance
B. Banker's Acceptance
C. Fair Exchange Certificate
D. Letter of Credit
Feedback: A letter of credit will satisfy the construction manager's concern about the quality
of the product being purchased. Disbursement from Chipper's bank account for an agreed
upon purchase price will be made after the customer has accepted the condition of the product
and the dealer has delivered the wood on time. A banker's acceptance requires that
disbursement occur at a specified time, and for a specified amount, without further conditions.
316.
Chapter 20 - Money, Financial Institutions, and the Federal Reserve
The theme of the Reaching Beyond Our Borders box titled, “New Issues Facing World
Bank and the IMF,” reflects upon:
A. The success the organizations have had in bringing us closer to an international
monetary system.
B. The dependency on the U.S. to fund most projects put forth by both of these
international organizations.
C. The rift that started between these two organizations that continues to go unsolved.
Both organizations also suffer from internal problems that inhibit them from moving
forward with organizational initiatives.
D. New and ongoing economic issues around the world that present significant challenges
for both organizations.
Feedback: Higher prices, inflation, unemployment, debt crises and more plague the World
Bank and the IMF. These ongoing economic issues continue to present challenges for these
organizations. They continue to seek answers to economic and financial dilemmas, in their
quest to establish an international monetary fund and to help economically disadvantaged
countries.
20-106
317. Describe and compare the three major types of organizations that make up the U.S.
banking system: commercial banks, savings and loan associations, and credit unions.
20-110
321. During Red's time as head of the Bank of Bramblewood, the bank offered three
services: time deposits, demand deposits, and home and business loans. Under Patty's
leadership, the bank offers those services, a variety of investment opportunities such as
mutual funds and bonds, and they are set-up to provide ___________ through the Internet
which may involve a number of services such as paying bills directly from one's account,
or transferring money from one account to another.
A. demand deposits II
B. online banking
C. passbook banking
D. composite banking
Feedback: Just about all large and small banks provide online banking services which
includes bill payment transactions and the movement of funds from one account to another.
