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Chapter 15 Money and the Financial System Quiz 1

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Chapter 15 Money and the Financial System Quiz

1. When currency is stable, it provides no incentive to save. 
Select one: True False 
2. The three important functions of money are that it serves as a medium of exchange, a measure of value, and a store of value. 
Select one: True 
False 
3. A savings account is the same thing as a money market account. 
Select one: True False 
4. A credit union is owned and controlled by a larger bank. 
Select one: True False 
5. Mutual funds spread the risk of investing across many securities 
Select one: True  False 

6. Most brokerage firms also provide other services such as investment banking or selling securities. 
Select one: True  False 

7. Advantages of direct deposits of paychecks and other income to consumers include convenience, safety, and potential interest earnings. 
Select one: True  False 

8. Most experts believe that banks will continue to consolidate and get larger over time. 
Select one: True False 
9. The U.S. government created the Troubled Asset Relief Program (TARP) in an effort to prevent economic collapse during the most recent financial recession. 
Select one: True  False 

10. Rapid advances and technological innovations are requiring the banking industry to change. 
Select one: True  False