Question

Question 31:

Is having a large amount of debt relative to your disposable income a good thing or a bad thing, give 2 reasons why?

Question 32:

What does “lending standards for home buyers are weak” mean?

Question 33:

What does a mortgage down payment mean?

Question 34:

What is the Federal Reserve System?

a. the nation’s central bank

b. the U.S. Department of Banking

c. U.S. Department of the Treasury, Banking Division

d. the legal requirement that interest must be paid on loans.

e. the only national bank in the United States, located in Washington, D.C.

Question 35:

Which of the following is a function of the Federal Reserve?

a. makes monetary policy

b. prints currency and mints coin

c. regulates and supervises banks

d. all of the above

e. a and c only

Question 36:

Real gross domestic product is:

a. the market value of all final goods and services produced within a country in a year.

b. the market value of all intermediate goods and services produced within a country

in a year.

c. the market value of all final goods and services produced within a country in a

year, adjusted for inflation.

d. the market value of all final goods and services produced within a country in a year,

Question 37:

23. The money supply is the amount:

a. of gold in Fort Knox.

b. the federal government has to spend each year.

c. of currency printed each year by the Bureau of Engraving and Printing.

d. of currency, coins and checking account deposits available in an economy.

e. a and d only

Question 38:

The national debt is the:

a. annual deficit.

b. amount loaned to banks by the Bank of Canada.

c. difference between the amount of goods exported and the amount imported.

d. the financial obligations of the government resulting from deficit spending.

e. the sum of all money owed by individuals and businesses in the United States to other

countries.

Question 39:

Who regulates the chartered banks in Canada?

Question 40

What is the difference between real and nominal interest rate?

Answer 1

Q-31 :: ANSWER ::

Disposable income Is The Income After Deducting Taxes And Government Charges Which Have Been Paid. So It Shows The After Tax Income Of The Individual. So It Is not Good to have A larger Debt Relatively to The Disposable Income. The Reason For That Is ;

(1) When Disposable Income Is Lower Than The Debt, So The Reason For That Is most Of The Income Of The Individual Is Goes For The Debt Compensation.

(2) The Other Reason For That is The Debt Cycle Of Repayment. If Repayment Cycle Is Long So The Disposable Income Is Lower Than The Debt.

Q-32 :: ANSWER ::

Lending Standards Are The Standards Or Procedure For Lending Or Providing money To The Individual For Buying Home Or Car And Other Things. So When We Say That " Lending Standard For Home Buyer Is Weak " It Meas the Loan Proving to The Buyer Of New Home Is Easier. So When individual Take Loan From Bank Or Financial Institute For Buying home Then it Is Easier For Them.

Q-33 :: ANSWER ::

The Mortgage Down Payment Means The Amount That Is Paid First When You Buy The Property, Loan Or something Else. It Is The Amount Of Some Percentage Of Full Amount Of Purchase Price.

Q-34 :: ANSWER :: (E) the only national bank in the United States, located in Washington, D.C.

=> Explanation ::

The Federal Reserve System Is The Banking System Of United States. It is The Only National Bank Of United State That Is Know As Federal Reserve That Is Situated In The Washington, D.C it Was Established In The Year Of 1913.

Q-35 :: ANSWER :: (D) All Of The Above

=> Explanation ::

The Federal Reserve Is The Central Bank Of United States That Works As The Advisor of The Federal Government Of United States. It Make Monetary Policy And Implement It In The Country Also The FED Print Currency And Mint Coins And It Regulate The Whole Banking System In The Economy.