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Unformatted text preview: deral Savings and Loan Association Federal Housing Administration Our present monetary system is based on a A. B. C. D. Gold standard. Gold reserve standard. Silver standard. Standard of confidence. 5. The Federal Reserve System has powers to control the flow of money and credit in the United States. All of the following are included in these powers except: A. B. C. D. Establishment of the discount rate for member banks Setting the reserve requirements for member banks Setting the margin requirements on security purchases Control over the sale and purchase of municipal bonds and their interest rates 6. Business cycles have four phases which are: A. B. C. D. Prosperity, recession, depression, recovery Depression, recession, obsolescence, recovery Progression, recovery, reaction, depression Obsolescence, depression, recovery, stagflation 7. When a business cycle begins to pick up after a downturn, this phase is called: A. B. C. D. Property Recession Depression Recovery 8. "Stagflation" refers to: A. B. C. D. Inflation during an economic slowdown Inflation during prosperity A decrease in inflation during recession A decrease in inflation during prosperity. 2-32 Licensing School for Appraisal, CPA, Contractors, Insurance, Real Estate, Notary, Nurse, Food Handlers, Tax and Securities 2. THE MONEY MARKET
9. All of the following regarding the Federal Reserve System are true, except: A. B. C. D. 10. There are seven regional banks The board of governors consists of seven members Each governor is appointed for a 14 year term It was created by an act of congress When the Federal Reserve tightens up the money supply: A. B. C. D. The housing market is the last to feel the pinch Housing sales increase The use of seller carry–back financing declines Mortgage interest rates usually increase Answer Key: 1–A, 2–D, 3–C, 4–D, 5–C, 6–A, 7–D, 8–A, 9–A, 10–D Dynasty School (www.dynastySchool.com) 2-33 3: INSTITUTIONAL LENDERS CHAPTER 3: INSTITUTIONAL LENDERS PREVIEW
The objective of this chapter will be to explore the traditiona...
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This note was uploaded on 12/30/2010 for the course SOC 101 taught by Professor Zhung during the Spring '10 term at Punjab Engineering College.
- Spring '10