Just 10 questions... 1-Which of the following is an effective strategy when interest rates are falling?
*Use long-term loans to take advantage of current low rates.
*Use short-term loans to take advantage of lower rates when you refinance a loan.
*Deposit to a short-term savings instruments to take advantage of higher interest rates when they mature.
*Select short-term savings instruments to lock in earnings at current high rates.

2-What are some of the differences that could occur between a state-chartered bank and a federally chartered bank under a dual banking system? (Select all that apply.)
*lending limits may vary between state and federal charters
*federally chartered banks have stricter insurance requirements under the FDIC
*banks in the same state can be regulated by different agencies
*state banks are supervised more heavily than federally chartered banks

3-When a credit union gives permission to another credit union to use their branches for members to make deposits and cash checks, the credit union is considered .
*an acquirer
*a member-owner
*a stock holder
*an issuer

4-Mr. Smith, Ms. White, Mr. Jones and Mrs. Reyes are all partners in a new bank. Based on the funds that each partner contributed to creating the bank, the following ownership percentages were calculated, respectively: 8%, 31%, 23%, 10%. What is a potential issue with the partner contributions?
*Mr. Smith must contribute an additional 2% to bring his ownership up to the minimum of 10%.
*Ms. White plus Mr. Jones results in over 50% ownership and more than 3 shareholders must make up majority ownership.
*Ms. White is out of compliance at 31%.
*There is no issue as no one shareholder has majority ownership of the bank.

5-What criteria are required in order to establish a personal credit rating? (Select all that apply.)
*must be 18 years old
*has a credit card in their name for six months or more
*maintains a low risk profile
*has good payment habits

6-If a group of workers from the same organization want to pool their resources together, which of the following institutions would be the best organization for them to put their money?
*savings bank
*federal market
*franchise
*cooperative

7-An agreed upon trading of service, goods, or objects that does not include money is called a .
*bank run
*barter
*currency
*reserve

8-The US Department of the Treasury is responsible for policing member banks, checking the bank transactions for “sound credit.”
*True or *False

9-Which of the following actions taken by the Fed will increase the nation’s money supply? (Select all that apply.)
*lowering the discount rate
*raising the discount rate
*lowering the reserve ratio
*raising the reserve ratio

10-Location selection for your bank is critical because location will determine all of the following except .
*customer pool
*how many shareholders the bank will have
*customers’ financial needs
*visibility of the bank in the community