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Accounts
Interest
FED
Economic Relationships
Finance Misc.
100

What are the two basic bank accounts

Checking & Savings

100

Define interest

money paid regularly at a particular rate of a certain amount of money

100

What is the Dual Mandate and its' criterion?

the FED's mission to keep inflation at 2%, and unemployment at 4%

100
What happens to inflation when the FED cuts rates?

Inflation increases

100

Name 3 different asset classes

Ect

200

Out of these, which has the LEAST liquidity: Checking, Savings, Money Market, High Yield Savings, and CDs.

Certificate of Deposits (CDs)

200

What is the difference between APR and APY

APR- interest which you owe, APY- interest which you gain

200

Who is the current chairman of the FED?

Jerome Powel

200

What type of policy should be used when there is a recession to bring back economic growth

expansionary policy

200

Difference between stock and bond

ect

300

What rule limits the number of times you can withdraw from savings accounts? And how much a month?

Regulation D, 6 times a month
300

assuming a 10% APY on an $1000 dollar investment, how much will you gain in 2 years?

$1,210

300

How many regional federal reserve banks are there throughout the US?

12

300

How does raising interest rates affect unemployment

unemployment increases

300

What are the 3 financial statements

Income statement, balance shseet, cash flow statement

400

What is the difference between a high-yield savings account and a money market account?

A money market account has a fluctuating interest rate while a high-yields is fixed

400

A bank is advertising a  $100 8% APY Certificate of Deposit for 3 months. What is the actual interest on the CD?

2%, $2 net gain

400

What are the 3 tools of the FED?

Open Market Operations, Federal Funds Rate, Reserve Requirements

400
What happens to the money supply & inflation when the FED increases the reserve requirements/interest on reserves

Money supply decreases, inflation drops

400

Given that stock X has a market price of $100. And a put option is purchased with a strike price (K) at $90 with a premium (p) of $15.

What is the option's profit at time (t) when the price of stock X is $60

K - S(t) - p = $15.00

500

What crisis was the FDIC created in response to?

The great depression

500

A bank is advertising a  $100 8% APY Certificate of Deposit for 3 months. What is the actual interest on the CD?

2%

500

What sort of policy did the FED perform during the 2008 recession?

Quantatative Easing/Expansionary Policy

500

What happens to unemployment when the FED buys bonds?

Unemployment goes down as liquidity is injected.
500

What happens to a discounted bond's value when maturity is reached?

Bond price returns to the par value.