Question

I am looking help with these 5 Questions, can you help me, please

1) Ruth Hu recently inherited $200,000. She has invested the inherited money in real estate and government securities. Hu is using her money as a:

	A.	Store of value
	B.	Medium of exchange
	C.	Measure of wealth
	D.	Commodity of exchange
	E.	Measure of value

2) The purchase or sale of U.S. government bonds by the Federal Reserve to stimulate or slow down the economy is called:

	A.	A base market operation
	B.	An open market operation
	C.	A prime transaction
	D.	Manipulating the discount rate
	E.	Making a general fund deposit/withdrawal

3) National banks must belong to the Federal Reserve System and must carry FDIC insurance.

True

False

4) About two-thirds of all U.S. commercial banks are chartered by the state in which they are based. The banks are called _________ banks.

	A.	Fiscal
	B.	Federated
	C.	Decentralized
	D.	Autonomous
	E.	State

5) Which of the following statements about international banking is true?

	A.	International banks are extremely risk-aversive.
	B.	East Asian countries have proven one of the most profitable areas for U.S. banks.
	C.	It is illegal for U.S. banks to provide loans to foreign governments.
	D.	Foreign banks are subject to fewer regulations than U.S. banks.
	E.	All of the above statements about international banking are true.

Answer 1

1.Ruth Hu recently inherited $200,000.She has invested the inherited money in real estate and government securities.Hu is using her money as a

A.Store of value

(Investing money in real estate and government securities,is using money as a store of value by Hu.Investing the money helps to store its value for the future without the loss of its purchasing power.)

2.The purchase or sale of U.S government bonds by the Federal Reserve to stimulate or slow down economy is called

B. An open market operation

(An open market operation refers to the buying and selling of the government securities in the open market.Buying securities by the Federal Reserve leads to stimulating the economy and expand it,while selling the securities leads to slowing down the economy and contract it.)

3.National banks must belong to the Federal Reserve System and must carry FDIC insurance.

TRUE

(According to the Federal Reserve Act all national banks must belong to the Federal Reserve System,also it is mandatory to carry a FDIC insurance)

4.About two thirds of all the commercial U.S banks are chartered by the state in which they are based.These banks are called STATE banks.

(A state bank is a commercial bank incorporated under a state charter where they are based)