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SESSION 1
Session 1 · The Federal Reserve
0 / 32 mastered
1. What is the Federal Reserve?
Answer: The Federal Reserve is the central bank of the United States.
2. When was the Federal Reserve created?
Answer: 1913.
3. Why was the Federal Reserve created?
Answer: To provide a more stable and flexible monetary and banking system.
4. What is the Federal Reserve Act of 1913?
Answer: The 1913 law that created the Federal Reserve System.
5. What are the main roles and functions of the Federal Reserve?
Answer: Monetary policy, bank supervision/regulation, financial stability, and payment/financial services.
6. What is the Fed's dual mandate?
Answer: Maximum employment and stable prices.
7. What does maximum employment mean?
Answer: A strong labor market with employment as high as can be sustained without creating excessive inflation pressure.
8. What does stable prices mean?
Answer: Low and stable inflation over time.
9. What is the basic structure of the Federal Reserve System?
Answer: The Board of Governors, 12 regional Reserve Banks, and the FOMC.
10. What is the Board of Governors?
Answer: The seven-member federal board that oversees the Federal Reserve System.
11. How many members are on the Board of Governors?
Answer: Seven.
12. How long is a full term for a Federal Reserve governor?
Answer: 14 years.
13. How are Federal Reserve governors nominated and confirmed?
Answer: Nominated by the President and confirmed by the Senate.
14. How is the Federal Reserve Chair selected?
Answer: The President nominates a Chair from among Board members, subject to Senate confirmation.
15. How long is the Chair's term?
Answer: Four years as Chair.
16. How many regional Federal Reserve Banks are there?
Answer: 12.
17. What is the role of the regional Federal Reserve Banks?
Answer: They provide financial services, supervise certain banks, gather regional economic information, and help implement policy.
18. Why is the Federal Reserve Bank of New York especially important?
Answer: The New York Fed carries out open market operations and has a permanent FOMC voting seat.
19. What is the Federal Open Market Committee (FOMC)?
Answer: The FOMC is the Fed's principal monetary-policy committee.
20. What is the role of the FOMC?
Answer: To make key U.S. monetary-policy decisions.
21. Who serves on the FOMC?
Answer: The seven Board governors plus five Reserve Bank presidents who vote at a time.
22. How many voting members are on the FOMC?
Answer: 12 voting members.
23. How many scheduled FOMC meetings are normally held each year?
Answer: Eight scheduled meetings per year.
24. What kinds of decisions are made at an FOMC meeting?
Answer: The policy-rate target, balance-sheet policy, and related monetary-policy guidance.
25. What is the federal funds rate?
Answer: The overnight interest rate on unsecured lending of reserve balances between eligible institutions.
26. How can FOMC interest-rate decisions affect the economy?
Answer: They influence borrowing costs, saving, spending, investment, employment, and inflation.
27. Who is the current Federal Reserve Chair?
Answer: Kevin Warsh.
28. Who was the Federal Reserve Chair immediately before the current Chair?
Answer: Jerome H. Powell.
29. Who is Janet Yellen, and when did she serve as Fed Chair?
Answer: Janet Yellen served as Fed Chair from 2014 to 2018.
30. Who is Ben Bernanke, and when did he serve as Fed Chair?
Answer: Ben Bernanke served as Fed Chair from 2006 to 2014.
31. What is the recent sequence of Fed Chairs from Alan Greenspan through Kevin Warsh?
Answer: Alan Greenspan → Ben Bernanke → Janet Yellen → Jerome Powell → Kevin Warsh.
32. What key Federal Reserve numbers should you remember: 1913, 7, 12, 12, 14 years, 4 years?
Answer: 1913; 7 governors; 12 Reserve Banks; 12 FOMC voters; 14-year governor term; 4-year Chair term.
SESSION 2
Session 2 · Monetary Policy
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33. What is monetary policy?
Answer: Actions by the central bank to influence interest rates, financial conditions, employment, and inflation.
34. What is expansionary monetary policy (easing)?
Answer: Policy intended to make financial conditions easier, usually by lowering rates and/or adding accommodation.
35. What is contractionary monetary policy (tightening)?
Answer: Policy intended to make financial conditions tighter, usually by raising rates and/or reducing accommodation.
36. Why would the Fed use easing?
Answer: Policy intended to make financial conditions easier, usually by lowering rates and/or adding accommodation.
37. Why would the Fed use tightening?
Answer: Policy intended to make financial conditions tighter, usually by raising rates and/or reducing accommodation.
38. What economic conditions might cause the Fed to cut interest rates?
Answer: Weak growth, rising unemployment, financial stress, or inflation below desired levels.
39. What economic conditions might cause the Fed to raise interest rates?
Answer: Persistent inflation, an overheated economy, or demand running too strongly.
40. What are the Fed's main monetary policy tools?
Answer: Policy-rate tools such as IORB and ON RRP, plus open market operations and balance-sheet tools such as QE/QT.
41. What is the federal funds rate?
Answer: The overnight rate on unsecured reserve-balance lending between eligible institutions.
42. Is the federal funds rate a single fixed rate or a target range?
Answer: It is targeted as a range, not one single administratively fixed market rate.
43. Who determines the target range for the federal funds rate?
Answer: The FOMC.
44. When are interest-rate decisions normally made?
Answer: Normally at scheduled FOMC meetings, with changes possible between meetings if necessary.
45. What is an FOMC meeting?
Answer: A meeting where policymakers review economic conditions and decide monetary policy.
46. How often does the FOMC normally meet?
Answer: Normally eight scheduled meetings per year.
47. What happens when the Fed cuts the federal funds rate?
Answer: Short-term rates and broader borrowing costs tend to face downward pressure.
48. What happens when the Fed raises the federal funds rate?
Answer: Short-term rates and many borrowing costs tend to rise.
49. How does the Fed actually implement a rate cut?
Answer: It lowers its target range and adjusts administered rates such as IORB and ON RRP downward.
50. How does the Fed actually implement a rate hike?
Answer: It raises its target range and raises administered rates such as IORB and ON RRP.
51. What is IORB (Interest on Reserve Balances)?
Answer: Interest on Reserve Balances is the rate the Fed pays eligible institutions on balances held at the Fed.
52. How does changing IORB help the Fed control short-term interest rates?
Answer: Raising or lowering IORB changes the return banks can earn on reserve balances.
53. What is the ON RRP (Overnight Reverse Repurchase Agreement) facility?
Answer: A facility where eligible counterparties can place cash overnight with the Fed in exchange for securities.
54. How does ON RRP help the Fed control short-term interest rates?
Answer: It gives eligible institutions an overnight alternative investment rate.
55. What is the discount rate?
Answer: The interest rate charged on certain loans from a Federal Reserve Bank's discount window.
56. What is the discount window?
Answer: A Federal Reserve lending facility for eligible depository institutions.
57. What is the relationship between the discount rate and bank borrowing from the Fed?
Answer: The discount rate is the price a bank pays to borrow from the Fed through the discount window.
58. What are bank reserves?
Answer: Balances banks hold at the Federal Reserve, plus vault cash in broader reserve concepts.
59. What happens to reserves when the Fed buys securities?
Answer: Reserve balances generally increase.
60. What happens to reserves when the Fed sells securities?
Answer: Reserve balances generally decrease.
61. What are open market operations (OMOs)?
Answer: Fed purchases and sales or repo transactions in financial markets used to implement policy.
62. What role does the Federal Reserve Bank of New York play in open market operations?
Answer: Fed purchases and sales or repo transactions in financial markets used to implement policy.
63. What is quantitative easing (QE)?
Answer: Policy intended to make financial conditions easier, usually by lowering rates and/or adding accommodation.
64. How does QE work?
Answer: The Fed buys securities, increasing its holdings and generally increasing reserve balances.
65. Why would the Fed use QE?
Answer: To provide additional monetary accommodation when ordinary rate cuts are insufficient.
66. How is QE different from a normal interest-rate cut?
Answer: A normal rate cut changes the policy-rate target; QE changes the size/composition of the Fed's balance sheet through large asset purchases.
67. What is quantitative tightening (QT)?
Answer: Policy intended to make financial conditions tighter, usually by raising rates and/or reducing accommodation.
68. How does QT work?
Answer: The Fed allows its balance sheet to shrink, usually through runoff and sometimes asset sales.
69. Why would the Fed use QT?
Answer: To remove monetary accommodation and normalize or shrink the balance sheet.
70. What is the difference between QE and QT?
Answer: QE expands the Fed's securities holdings; QT reduces them.
71. How does QE affect the Fed's balance sheet?
Answer: It expands it.
72. How does QT affect the Fed's balance sheet?
Answer: It shrinks it.
73. What is the money supply?
Answer: The quantity of money balances held in the economy, measured with aggregates such as M1 and M2.
74. What is the relationship between the money supply and interest rates?
Answer: In a simple money-market model, more money supply lowers the equilibrium interest rate, all else equal; less raises it.
75. If the money supply increases, what normally happens to interest rates, all else equal?
Answer: In the simple money-market model, interest rates tend to fall, all else equal.
76. If the money supply decreases, what normally happens to interest rates, all else equal?
Answer: In the simple money-market model, interest rates tend to rise, all else equal.
77. How can lower interest rates affect borrowing and spending?
Answer: They tend to encourage borrowing and spending.
78. How can higher interest rates affect borrowing and spending?
Answer: They tend to discourage borrowing and spending.
79. How can a rate cut affect investment, consumption, employment, and economic growth?
Answer: It generally supports investment and consumption and can strengthen employment and growth.
80. How can a rate hike affect investment, consumption, employment, and economic growth?
Answer: It generally restrains investment and consumption and can slow hiring and growth.
81. How can a rate cut affect inflation?
Answer: It can increase inflation pressure over time if it boosts aggregate demand.
82. How can a rate hike affect inflation?
Answer: It can reduce inflation pressure over time by slowing demand.
83. What is the monetary-policy transmission mechanism?
Answer: The chain from Fed policy → market rates/financial conditions → borrowing/spending/investment → employment/output/inflation.
84. How do Fed policy decisions move from short-term rates to the broader economy?
Answer: Short-term policy changes influence other rates, asset prices, credit, exchange rates, and expectations.
85. What is the difference between a 25-basis-point, 50-basis-point, and 100-basis-point rate change?
Answer: 25 bp = 0.25 percentage point; 50 bp = 0.50; 100 bp = 1.00.
86. What is a basis point?
Answer: One-hundredth of one percentage point.
87. How many basis points equal one percentage point?
Answer: 100 basis points.
88. Does cutting interest rates automatically mean the Fed is 'printing money'?
Answer: No.
89. Is a rate cut the same thing as QE?
Answer: No.
90. Is a rate hike the same thing as QT?
Answer: No.
91. Can the Fed change interest rates without buying or selling large amounts of bonds?
Answer: Yes.
92. What is the relationship between monetary policy and the Fed's dual mandate?
Answer: The Fed uses monetary policy to pursue maximum employment and stable prices.
93. Does the President determine the federal funds rate?
Answer: No.
94. Can the President order the Fed to raise or cut interest rates?
Answer: No.
95. Can the President publicly express an opinion about what the Fed should do with interest rates?
Answer: Yes.
96. What is meant by Federal Reserve independence?
Answer: The Fed makes monetary-policy decisions without day-to-day direction from elected officials.
97. Why is Federal Reserve independence important for monetary policy?
Answer: The Fed makes monetary-policy decisions without day-to-day direction from elected officials.
98. Who has the legal authority to vote on FOMC monetary-policy decisions?
Answer: The voting members of the FOMC.
99. What is the difference between the Federal Reserve and the U.S. Treasury?
Answer: The Fed is the central bank; Treasury is part of the executive branch that manages federal finances and debt issuance.
100. Does the Fed directly finance normal federal government spending?
Answer: No, not as the normal mechanism for government spending.
101. What is the difference between Treasury issuing government debt and the Fed conducting monetary policy?
Answer: Treasury borrowing finances government deficits; Fed monetary policy manages interest rates and financial conditions.
102. Be able to trace: easing → rates down → borrowing/spending up → economy stimulated; tightening → rates up → borrowing/spending down → economy slows.
Answer: Easing: rates ↓ → borrowing/spending ↑ → demand/economy ↑. Tightening: rates ↑ → borrowing/spending ↓ → demand/economy ↓.
SESSION 3
Session 3 · What Is Money?
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103. What is money?
Answer: Anything widely accepted as a means of payment and used as a unit of account and store of value.
104. What are the three basic functions of money?
Answer: Medium of exchange, unit of account, and store of value.
105. What is the difference between money, income, and wealth?
Answer: Money is a spendable asset; income is earnings per period; wealth is assets minus liabilities.
106. What is a money supply?
Answer: The total amount of money balances measured by a defined aggregate.
107. Why are there different measures of the money supply?
Answer: Because assets differ in liquidity and spendability.
108. What is M0?
Answer: In this course, M0 is classroom shorthand for currency held by the public.
109. What is the monetary base (MB)?
Answer: Currency in circulation plus reserve balances at the Federal Reserve.
110. What is the difference between M0 and MB?
Answer: M0 here focuses on public currency; MB includes currency plus banks' reserve balances.
111. What is M1?
Answer: A narrow money aggregate that includes currency and highly liquid deposits; under the current Fed definition it also includes savings deposits.
112. What is included in M1?
Answer: Currency held by the public, demand/other checkable deposits, and savings deposits under the current definition.
113. What is M2?
Answer: A broader money aggregate equal to M1 plus selected additional liquid savings instruments.
114. What is included in M2?
Answer: M1 plus small time deposits and retail money market funds, with the Fed's detailed exclusions.
115. What is the relationship between M1 and M2?
Answer: M1 is contained within M2.
116. Why is M2 larger than M1?
Answer: Because it includes everything in M1 plus more liquid savings instruments.
117. What is M3?
Answer: A historical broader money concept that added large and institutional liquid instruments beyond M2.
118. Does the Federal Reserve still publish M3?
Answer: No.
119. What is the difference between currency and bank deposits?
Answer: Currency is physical cash; bank deposits are electronic claims on a bank.
120. Are bank reserves part of the monetary base?
Answer: Currency in circulation plus reserve balances at the Federal Reserve.
121. Are bank reserves part of M1 or M2?
Answer: No, bank reserve balances themselves are not included in M1 or M2.
122. Why can M2 be many times larger than M0/currency in circulation?
Answer: Because most money is bank deposits, not paper currency.
123. How can the economy have much more money than the amount of physical cash?
Answer: Because most money is bank deposits, not paper currency.
124. Who creates physical U.S. currency?
Answer: U.S. currency is issued into circulation through the Federal Reserve system; notes are printed by the Bureau of Engraving and Printing and coins are produced by the U.S. Mint.
125. What role does the Federal Reserve play in creating base money?
Answer: The Fed creates reserve balances and supplies currency, changing the monetary base through its operations.
126. What role do commercial banks play in creating money?
Answer: Banks create deposit money when they make loans and credit borrowers' deposit accounts.
127. How does a bank loan create a bank deposit?
Answer: When a bank approves a loan, it records a loan asset and credits a deposit liability to the borrower.
128. Why does bank lending increase the amount of deposit money in the economy?
Answer: New loans can create new deposits.
129. What happens to deposit money when a bank loan is repaid?
Answer: Repayment reduces the borrower's deposit and the bank's loan asset.
130. Can commercial banks create unlimited amounts of money?
Answer: No.
131. What factors limit banks' ability and willingness to create loans and deposits?
Answer: Capital, liquidity, regulation, creditworthy demand, funding costs, risk, and profitability.
132. Does the Fed directly control M1 and M2?
Answer: No.
133. How can Federal Reserve policy indirectly influence M1 and M2?
Answer: By changing interest rates, financial conditions, reserves, and incentives to lend, borrow, save, and spend.
134. What is the relationship between interest rates and the money supply?
Answer: They are related through money demand, lending, and monetary policy.
135. What normally happens to interest rates when money/liquidity becomes more abundant, all else equal?
Answer: In the simple model, interest rates tend to fall.
136. What normally happens to interest rates when money/liquidity becomes less abundant, all else equal?
Answer: In the simple model, interest rates tend to rise.
137. How can a rate cut affect borrowing, bank lending, deposits, and money growth?
Answer: It can encourage borrowing and lending, which may support deposit and money growth.
138. How can a rate hike affect borrowing, bank lending, deposits, and money growth?
Answer: It can discourage borrowing and slow new lending and deposit growth.
139. Does every Fed rate hike automatically cause M2 to fall?
Answer: No.
140. Does every Fed rate cut automatically cause M2 to rise?
Answer: No.
141. What is the relationship between money-supply growth and inflation?
Answer: Rapid money growth can contribute to inflation when it supports spending that outpaces the economy's ability to produce goods and services.
142. Why can rapid money growth contribute to inflation?
Answer: Because more nominal spending power chasing limited output can raise prices.
143. Does an increase in M2 automatically and immediately cause inflation?
Answer: No.
144. Why do spending, output, lending, and velocity matter when connecting money growth to inflation?
Answer: They determine how strongly a given amount of money translates into nominal spending.
145. What is the velocity of money?
Answer: The rate at which a unit of money is used to purchase final goods and services over a period.
146. What does a higher velocity of money mean?
Answer: Each dollar is being used more frequently in transactions, on average.
147. What does a lower velocity of money mean?
Answer: Money is circulating more slowly.
148. How can the Fed try to reduce inflation?
Answer: Raise policy rates, maintain tighter financial conditions, and, when appropriate, use balance-sheet tightening such as QT.
149. How can raising interest rates help reduce inflation?
Answer: Higher rates make borrowing more expensive and saving more attractive, reducing some spending and investment.
150. How can tighter monetary policy reduce borrowing and spending?
Answer: It raises financing costs and reduces credit-sensitive spending.
151. How can QT (quantitative tightening) contribute to tighter monetary conditions?
Answer: QT reduces the Fed's securities holdings and removes some balance-sheet accommodation.
152. Be able to trace: tighter policy → higher rates → less borrowing/spending → slower demand and money/deposit growth → lower inflation pressure over time.
Answer: Tighter policy → higher rates → less borrowing/spending → slower demand and money/deposit growth → lower inflation pressure over time.
SESSION 4
Session 4 · Crypto, Stablecoins & Digital Payments
0 / 50 mastered
153. What is cryptocurrency?
Answer: A digital asset that uses cryptographic systems and typically a distributed ledger to record ownership and transfers.
154. What is a cryptoasset?
Answer: A digital token or asset recorded on a distributed ledger such as a blockchain.
155. What is blockchain?
Answer: A shared database or ledger maintained by many computers, with transactions grouped and validated under a consensus rule.
156. Why is blockchain called a distributed or shared ledger?
Answer: Because copies of the ledger are maintained and validated across multiple network participants.
157. How is a transaction recorded on a blockchain?
Answer: A user signs a transaction, the network validates it, and it is included in the ledger according to that blockchain's consensus process.
158. What is Web3?
Answer: A broad term for internet applications that use blockchains, digital assets, smart contracts, and user-controlled wallets.
159. How is Web3 different from a traditional website or Web2?
Answer: Web2 usually relies on company-controlled accounts and databases; Web3 can use wallets and public blockchains for identity, assets, and transactions.
160. What is a Web3 wallet?
Answer: Software or hardware that manages cryptographic keys and lets a user sign blockchain transactions.
161. Does a crypto wallet actually 'hold' cryptocurrency, or does it manage the keys that control it?
Answer: Usually the assets remain recorded on the blockchain; the wallet manages the keys that authorize control.
162. What is a public key/public address?
Answer: The public identifier others can use to send assets to you.
163. What is a private key?
Answer: A secret cryptographic key that authorizes control of blockchain assets.
164. What is the difference between a public key/address and a private key?
Answer: The public address is for receiving/identifying an account; the private key is the secret used to authorize transactions.
165. Which one can you safely give to someone who wants to send you crypto?
Answer: Your public receiving address.
166. Why should you never share your private key?
Answer: Because possession of the private key can allow another person to transfer your assets.
167. What is a seed phrase/recovery phrase?
Answer: A set of recovery words that can regenerate a wallet's private keys.
168. Why is the seed phrase extremely important?
Answer: It can restore access to the wallet if the device is lost or damaged.
169. What could happen if someone obtains your private key or seed phrase?
Answer: They may be able to transfer your assets without your permission.
170. What could happen if you permanently lose your private key/seed phrase?
Answer: You may permanently lose access to self-custodied assets.
171. What is the difference between a custodial wallet and self-custody?
Answer: With custody, a platform controls the keys for you; with self-custody, you control the keys.
172. What is a hardware wallet?
Answer: A dedicated device that stores/signs with private keys in a more isolated environment.
173. What are basic ways to keep a private key and seed phrase safe?
Answer: Keep seed words offline, use a hardware wallet for meaningful balances, use strong authentication, verify addresses/contracts, and beware phishing.
174. Why should a seed phrase generally be kept offline rather than in email/cloud storage?
Answer: Cloud accounts, email, screenshots, and synced notes can be hacked or copied remotely.
175. Why is it smart to send a small test transaction first before transferring a large amount?
Answer: To verify the network, token, and destination address before risking a large amount.
176. What is Bitcoin?
Answer: A decentralized digital asset and payment network with a market-determined price and programmed supply rules.
177. How is Bitcoin created through mining?
Answer: Proof-of-work miners validate blocks and compete to earn block rewards and transaction fees.
178. What is Bitcoin's maximum supply?
Answer: 21 million BTC by design.
179. What is the Bitcoin halving?
Answer: A roughly four-year event that cuts the block subsidy paid to miners in half.
180. Why is Bitcoin different from a U.S.-dollar stablecoin?
Answer: Bitcoin has a floating market price and no $1 redemption promise; a USD stablecoin is designed to track $1 using reserves/redemption or another stabilization model.
181. Why can Bitcoin's price fluctuate substantially while a dollar stablecoin attempts to remain near $1?
Answer: Bitcoin's price is set by market supply and demand; a stablecoin has mechanisms intended to anchor it near $1.
182. What is a stablecoin?
Answer: A digital token designed to maintain a stable value relative to a reference asset, usually the U.S. dollar.
183. Why are stablecoins called 'stable'?
Answer: Because the design targets a relatively stable reference value, often $1.
184. What does it mean when a USD stablecoin is pegged to $1?
Answer: The token is designed to trade and redeem at approximately one U.S. dollar.
185. What are examples of major dollar stablecoins such as USDT and USDC?
Answer: USDT and USDC are two major examples.
186. What normally backs a fiat-backed stablecoin?
Answer: Cash, bank deposits, short-term U.S. Treasuries, and other highly liquid permitted reserve assets depending on the issuer and legal framework.
187. What does minting a stablecoin mean?
Answer: Creating new stablecoin tokens, generally when qualifying reserve assets are received.
188. What does burning a stablecoin mean?
Answer: Permanently removing redeemed tokens from circulation.
189. How can reserves and redemption help keep a stablecoin near $1?
Answer: If users can reliably exchange $1 of stablecoin for $1 of value, arbitrage helps pull the market price toward $1.
190. Can a stablecoin temporarily lose its $1 peg?
Answer: Yes.
191. What is an algorithmic stablecoin, and why can it be riskier?
Answer: A token that relies heavily on rules, incentives, or another token instead of full hard-dollar reserve backing.
192. How does a stablecoin issuer make money from its reserve assets?
Answer: Mainly by earning interest on reserve assets and sometimes charging fees.
193. What is the GENIUS Act?
Answer: A U.S. federal law creating a regulatory framework for payment stablecoins.
194. What does GENIUS stand for?
Answer: Guiding and Establishing National Innovation for U.S. Stablecoins Act.
195. When was the GENIUS Act signed into law?
Answer: July 18, 2025.
196. Why was the GENIUS Act created?
Answer: To create a federal framework for payment stablecoin issuance and regulation.
197. What does the GENIUS Act require regarding stablecoin reserves?
Answer: Permitted payment stablecoins must be backed at least 1-for-1 with qualifying reserve assets, subject to the law's detailed rules.
198. Why is January 18, 2027 an important GENIUS Act implementation date?
Answer: It is 18 months after enactment and therefore a key statutory effective-date point unless final implementing regulations make the Act effective earlier under its 120-day rule.
199. Under the GENIUS Act framework, who can become a permitted payment-stablecoin issuer?
Answer: Qualifying issuers authorized under the federal framework or a qualifying state framework, subject to charter, supervision, reserves, and compliance requirements.
200. Could banks and other qualified financial firms participate in stablecoin/tokenized-dollar businesses as the regulatory framework develops?
Answer: Yes, qualified financial institutions may participate through legally permitted structures, subject to applicable approvals and rules.
201. What is the difference between a stablecoin and money in a checking account?
Answer: A checking balance is a bank deposit liability; a stablecoin is a digital-asset liability/token governed by an issuer and blockchain/payment network.
202. Why is an FDIC-insured checking account generally different in protection from holding a stablecoin, even after the GENIUS Act?
Answer: Eligible bank deposits may receive FDIC insurance up to applicable limits; a payment stablecoin itself is not an FDIC-insured deposit.
EXAM FORMAT PRACTICE
40 T/F + 10 Multiple Choice
This practice set mirrors the announced format. It is a study tool, not the actual midterm.
Study-guide notes: Session 1–4 topics are based on the FIN310 materials and the four question lists prepared for this midterm. Time-sensitive items were checked against official Federal Reserve and U.S. government sources. The GENIUS Act became Public Law 119-27 on July 18, 2025; its effective-date provision is the earlier of 18 months after enactment or 120 days after final implementing regulations. “January 18, 2027” should therefore be learned as a key statutory implementation/effective-date point—not as a guaranteed launch date for any particular bank’s stablecoin.