1. The Federal backing for the money in the United States comes from: Select one

ID: 1159475 • Letter: 1

Question

1. The Federal backing for the money in the United States comes from:

Select one:

a. sufficient quantities of gold and silver to cover the amount of paper money in circulation.

b. physical assets, such as land, natural resources, and public buildings as collateral for outstanding currency.

c. protecting checkable deposits at financial institutions with deposit guarantees.

d. control over the money supply designed to keep the value of money relatively stable over time.

2. A checkable deposit at a commercial bank is a(n):

Select one:

a. asset to both the depositor and the bank.

b. liability to both the depositor and the bank.

c. asset to the depositor and a liability to the bank.

d. liability to the depositor and an asset to the bank.

3. The reserves of commercial banks are a(n)

Select one:

a. asset to commercial banks and a liability to the Fed Banks.

b. interest earning asset for any bank.

c. liability to commercial banks and an asset to the Fed Banks.

d. asset to commercial banks and an asset to the Fed Banks.

4. A bank owns a 10-story office building. In the bank's balance sheet, this would be an example of:

Select one:

a. an asset.

b. a liability.

c. net worth.

d. capital stock.

Question 1.

Ans. D conrrol over money aupply designed to keep the value of money relatively stable over time

Question 2.

Ans. C Asset to the depositor and a liability to the bank

Question 3.

Ans. A Asset to commercial banks and a liability to the Fed Banks

Question 4.

Ans. A an asset

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