Banking and Liquidity
What is a mortgage?
A loan on a piece of property to either an individual or company who does not have the cash on hand.
This was founded in 1913
What is the Fed
What are the three functions of money?
Medium of Exchange, Store of value and Unit of Account
What is the Fed?
The central bank of the United States
When was the Cubs last world series win before 2016
1908
What is a central bank?
A national bank that has long term continual growth in mind.
In 1971 this ended
Why does money have to be durable?
So it can last over time
How many Federal Reserve Banks are there?
12
Has unlimited bread sticks and pasta?
What is Olive Garden
What is a legal reserve
The minimum amount of money financial institutions that are required by law to keep as security
In 1929, ______ caused banks to fail at an alarming rate
What are bank runs
What is fiat money?
Money not backed by something like gold but backed by the faith of the government.
The Fed controls the ________ which impacts national interest rates
In Peter Pan, Captain Hook had a hook on which one of his hands?
Left Hand
What is a variable interest rate?
An interest rate that is subject to fluctuation.
in 2008, the economy entered a _______ triggered by_______
recession, housing bubble
What is liquidity?
The relative ease and speed with which an asset can be converted into a medium of exchange.
What does FDIC stand for
Federal Deposit Insurance Corporation
Mr. Commons served in what Army unit?
What is the 82nd Airborne Division
What are sub-prime mortgages?
Mortgages granted to people who would not normally qualify for a mortgage, at risk for default
In 1848 this shocked the money supply in the United States
What is the gold rush
Which of the following is the main disadvantage of using gold bars as money instead of coins or paper currency?
Portability
How many members are there on the board of governors
7
Who was the first president of all 50 states?
Dwight D. Eisenhower