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Chapter 14 - Money, Banking, and Financial Institutions
98. Some economists are concerned that the financial rescue provided by the TARP will
encourage financial investors and firms to take on greater risks in the future. This is an
example of:
99. Which of the following programs was not designed and implemented by the Federal
Reserve?
Chapter 14 - Money, Banking, and Financial Institutions
100. Which of the following statements is true as a result of Federal Reserve efforts to rescue
the financial industry from the financial crisis of 2007 and 2008?
101. Which of the following programs provides loans of U.S. securities to primary dealers for
one-month terms, in an effort to enhance liquidity in U.S. securities markets?
Chapter 14 - Money, Banking, and Financial Institutions
102. Which role of the Federal Reserve was expanded directly as a result of the PDCF and
TSLF?
103. Which of the following programs involves the Federal Reserve directly purchases short-
term lending instruments from corporations?
Chapter 14 - Money, Banking, and Financial Institutions
104. What is the primary function of the Term Asset-Backed Securities Loan Facility?
105. The various lender-of-last-resort programs implemented by the Fed in response to the
financial crisis of 2007 and 2008:
Chapter 14 - Money, Banking, and Financial Institutions
106. Between September 2007, and September 2009:
107. New York Life, Prudential, and Hartford, are all primarily:
108. Wells Fargo, J.P. Morgan Chase, and Citibank, are all primarily:
Chapter 14 - Money, Banking, and Financial Institutions
109. Charter One, Pentagon Federal Credit Union, and Boeing Employees Credit Union, are
all primarily:
110. TIAA-CREF, Teamsters' Union, and CalPERS, are all primarily:
111. Smith Barney, Charles Schwab, and Merrill Lynch, are all primarily:
Chapter 14 - Money, Banking, and Financial Institutions
112. In 2009, approximately how much of the money on deposit was held by the three largest
U.S. banks?
113. Firms whose central business is to offer security advice and buy and sell individual
stocks and bonds for clients are known as:
114. Firms whose central business is providing individual account shares of collections of
stocks, bonds, or both are known as:
Chapter 14 - Money, Banking, and Financial Institutions
115. Which of these pairs of financial institutions are most alike in terms of their main lines of
business?
116. The Federal Deposit Insurance Corporation (FDIC) insures deposits up to $250,000 in:
117. (Consider This) Credits cards are:
Chapter 14 - Money, Banking, and Financial Institutions
118. (Consider This) Which of the following is not part of the M2 money supply?
119. (Consider This) Credit card balances are:
120. (Last Word) Electronic money is:
Chapter 14 - Money, Banking, and Financial Institutions
121. (Last Word) Plastic cards that contain computer chips that store account balances are
known as:
122. (Last Word) Smart cards sold by retailers, such as single-store gift cards and prepaid
phone cards, are known as:
123. The M2 money supply is larger than the M1 money supply.
124. The M2 money supply may be larger or smaller than the M1 money supply depending on
the size of small-denominated time deposit balances and Money Market Mutual Fund
balances held by individuals.
125. Checkable deposits held in saving and loan institutions, mutual savings banks, and credit
unions are part of the M1 definition of the money supply.
126. Currency and coins held by banks are part of the M1 definition of money supply.
127. Gold backs the U.S. money supply.
128. The twelve Federal Reserve Banks are governmentally owned but privately controlled.
129. The United States Treasury is the only agency authorized to put money into circulation
in the U.S. economy.
130. Thrifts are known as "banker's banks" because they lend money to commercial banks.
131. As of March 2009, the Federal government and Federal Reserve had spent $170 billion
to keep AIG financially afloat.
132. Subprime mortgage loans are so-named because the rates charged are below the prime
interest rate.
133. The programs enacted to bailout the financial system from crisis in 2007 and 2008
helped alleviate the moral hazard problem in the financial industry.
134. As part of its response to the financial crisis of 2007 and 2008, Federal Reserve Banks
began paying interest on reserve deposits.
135. Fidelity, Putnam, Janus, and Vanguard are examples of mutual fund companies.
136. Laws passed in the late 1990s restricted the activities of financial firms to narrowly
defined services they could provide, prompting the financial crisis of 2007 and 2008.
137. (Consider This) Credit cards are treated as money because they facilitate transactions.
