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- 44 practice questions, answers explained
- 2-page cram sheet and study plans
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DSST® Study Guide
Printable PDF · 35 pages
DSST Money and Banking Study Guide
Everything the DSST Money and Banking exam tests, in one PDF you can print. Built from Prometric's official outline, heaviest topics first.
- 184 key terms, each with an example
- 44 practice questions with every answer explained
- A 2-page cram sheet for the night before
- 2-, 4- and 8-week study plans built from the exam weights
Last updated 2026 · exam details checked against Prometric's published exam information in 2026
Look inside the guide
Real pages from the 35-page PDF.
What you get for $5
One chapter for each official content area, in the order the exam weighs them.
- 📘35pages, printable
- 🧭6chapters, heaviest first
- 🔑184terms with examples
- ✍️44practice questions, answers explained
- ⚠️18exam traps to avoid
- 📄2page cram sheet
Try 10 free Money and Banking questions
In the style of the real exam, from all 6 areas. About 10 minutes, with every answer explained and a score by area.
10 questions
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Question 1 · Commercial Banks and Other Financial Intermediaries
Federal law long barred commercial banks from affiliating with securities firms that underwrite stock. Which law created that barrier?
Show the answer
Answer: C. Glass-Steagall Act. The 1933 Glass-Steagall Act separated commercial banking from investment banking, keeping deposit-taking banks apart from securities underwriting.
The trap: The McFadden Act is tempting because it is also an early banking law, but it dealt with branching, not securities activities.
The 1933 Glass-Steagall Act separated commercial banking from investment banking, keeping deposit-taking banks apart from securities underwriting.
The trap: The McFadden Act is tempting because it is also an early banking law, but it dealt with branching, not securities activities.
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Question 2 · Central Banking and the Federal Reserve System
The National Banking Acts of 1863–1864 created a new kind of bank charter. Which agency issued these charters?
Show the answer
Answer: A. The Comptroller of the Currency. National banks were chartered and supervised by the Comptroller of the Currency, in the Treasury Department.
The trap: State banking commissions chartered state banks, which is the other half of the dual banking system, not national banks.
National banks were chartered and supervised by the Comptroller of the Currency, in the Treasury Department.
The trap: State banking commissions chartered state banks, which is the other half of the dual banking system, not national banks.
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Question 3 · Monetary Policy in the United States
Assume banks hold only the required 20% of deposits as reserves and lend out the rest, and no cash is held outside banks. If the Fed buys $10 million of securities from dealers who deposit the proceeds, the maximum increase in total deposits is
Show the answer
Answer: D. $50 million. The simple multiplier is 1 divided by 0.20, or 5. Five times $10 million is $50 million.
The trap: The $2 million choice multiplies by the reserve ratio instead of dividing by it.
The simple multiplier is 1 divided by 0.20, or 5. Five times $10 million is $50 million.
The trap: The $2 million choice multiplies by the reserve ratio instead of dividing by it.
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Question 4 · Money and Macroeconomic Activity
A nation's central bank expands the money supply by 10 percent. Real output and velocity are unchanged. According to the quantity theory of money, the price level will
Show the answer
Answer: B. rise by about 10 percent. With V and Q fixed, MV = PQ means P changes in proportion to M, so prices rise about 10 percent.
The trap: Staying the same is tempting because output is unchanged, but constant output with more money forces the price level up.
With V and Q fixed, MV = PQ means P changes in proportion to M, so prices rise about 10 percent.
The trap: Staying the same is tempting because output is unchanged, but constant output with more money forces the price level up.
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Question 5 · The International Monetary System
A low-income country wants a 20-year loan to build roads and irrigation. Which institution is the most likely source of such development financing?
Show the answer
Answer: C. The World Bank. The World Bank makes long-term loans for development projects such as roads and irrigation.
The trap: The IMF is tempting, but it lends short-term to countries with balance-of-payments problems, not for development projects.
The World Bank makes long-term loans for development projects such as roads and irrigation.
The trap: The IMF is tempting, but it lends short-term to countries with balance-of-payments problems, not for development projects.
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Question 6 · The Role and Kinds of Money
A shopper compares a $30 jacket with a $45 pair of shoes by looking at their dollar prices. Which function of money is she using?
Show the answer
Answer: A. Unit of account. Stating and comparing prices in one common measure is the unit of account function.
The trap: Medium of exchange is tempting because she is shopping, but she has not paid yet; she is only comparing prices.
Stating and comparing prices in one common measure is the unit of account function.
The trap: Medium of exchange is tempting because she is shopping, but she has not paid yet; she is only comparing prices.
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Question 7 · Commercial Banks and Other Financial Intermediaries
A bank sets a very high interest rate on loans. The borrowers most willing to accept it tend to be those with the riskiest projects, so the bank's loan pool gets worse. This problem is called
Show the answer
Answer: B. adverse selection. High rates attract the riskiest borrowers before the loan is made. Asymmetric information that causes this problem before the deal is adverse selection.
The trap: Moral hazard is tempting because it also involves risk, but it describes behavior after the loan is made, not who applies.
High rates attract the riskiest borrowers before the loan is made. Asymmetric information that causes this problem before the deal is adverse selection.
The trap: Moral hazard is tempting because it also involves risk, but it describes behavior after the loan is made, not who applies.
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Question 8 · Central Banking and the Federal Reserve System
Congress created the Federal Reserve in 1913 mainly in response to which weakness revealed by the Panic of 1907?
Show the answer
Answer: D. No institution could supply emergency cash to banks during a panic. The panic showed that the country lacked a lender of last resort, and the Fed was designed to fill that role.
The trap: The claim that state banks were forbidden to take deposits is false; state banks have always taken deposits.
The panic showed that the country lacked a lender of last resort, and the Fed was designed to fill that role.
The trap: The claim that state banks were forbidden to take deposits is false; state banks have always taken deposits.
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Question 9 · Monetary Policy in the United States
The economy is sliding into recession, and the Fed wants to stimulate spending. Which action fits that goal?
Show the answer
Answer: D. Buying government securities in the open market. Buying securities adds reserves, lowers the federal funds rate and encourages lending and spending.
The trap: Selling securities is tempting but drains reserves and raises rates, which would slow the economy.
Buying securities adds reserves, lowers the federal funds rate and encourages lending and spending.
The trap: Selling securities is tempting but drains reserves and raises rates, which would slow the economy.
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Question 10 · Money and Macroeconomic Activity
The money supply is $1,000 billion, velocity is 4 and real output is 2,000 billion units. Using the equation of exchange, the price level is
Show the answer
Answer: A. 2.0. MV = 1,000 x 4 = 4,000. Then P = 4,000 / 2,000 = 2.0.
The trap: A price level of 0.5 comes from dividing output by 4,000, flipping the equation upside down.
MV = 1,000 x 4 = 4,000. Then P = 4,000 / 2,000 = 2.0.
The trap: A price level of 0.5 comes from dividing output by 4,000, flipping the equation upside down.
The DSST Money and Banking exam at a glance
The DSST Money and Banking exam is a 120-minute, computer-based test from Prometric with about 100 multiple-choice questions. A score of 400 on the 200–500 scale earns an ACE credit recommendation of 3 semester hours, though each college sets its own policy. The exam covers 6 content areas; the heaviest is Commercial Banks and Other Financial Intermediaries at 25%.
- Questions
- About 100multiple choice
- Time
- 120 minabout 72 seconds a question
- Passing score
- 400on a 200–500 scale
- ACE credit
- 3semester hours
- Exam fee
- $100paid to Prometric
- Calculator
- Nonot allowed
What the exam covers
6 areas, heaviest first. The guide's chapters follow this order.
- Commercial Banks and Other Financial Intermediaries25%
- Central Banking and the Federal Reserve System20%
- Monetary Policy in the United States20%
- Money and Macroeconomic Activity19%
- The International Monetary System10%
- The Role and Kinds of Money6%
How it works
- 1Buy once, $5Secure checkout. No subscription needed.
- 2Download the PDFFrom your TransferCredit.org account, right away and any time later.
- 3Study the heaviest areas firstFollow the 2-, 4- or 8-week plan, then read the cram sheet the night before.
Questions students ask
What's in the full DSST Money and Banking study guide?
35 pages: 6 chapters, one per official content area, heaviest first. 184 terms, each with a plain-English definition and an example, 17 key people, common traps and memory tricks, 44 practice questions with an answer key that explains every answer, question tactics, 2-, 4- and 8-week study plans and a 2-page cram sheet.
How much is the full DSST Money and Banking study guide?
The full 35-page PDF is $5, a one-time payment. The 10 practice questions on this page are free, with no account.
What does the $29 plan include?
$29 a month gives you all DSST subjects: every DSST study guide plus the full prep course for each subject, and you can cancel anytime. If you only need this exam, the guide on its own is a one-time $5.
How do I get the full guide?
Choose Buy this guide ($5) and check out. Then sign in to your TransferCredit.org account, then open the course and its Download Your Study Guide lesson. The PDF is yours to keep, and you can download it again from your account at any time.
Can I print the guide or use it on my phone?
Yes. It's a PDF, so it opens on phones, tablets and computers, and printing is allowed. Its tick boxes and answer bubbles work in PDF readers that support forms. Copying and editing are turned off.
Is this an official DSST study guide?
No. DSST® is a registered trademark of Prometric, which was not involved in producing this guide and does not endorse it. TransferCredit.org is independent. We built the guide from the official exam outline, and the exam details were checked against Prometric's published exam information in 2026.
Why is this study guide better than a generic review?
It follows the official outline area by area and spends the most pages on what the exam weighs most. Every term comes with an example, each chapter names the traps the exam sets, and the answer key explains why the most tempting wrong answer is wrong, not just which answer is right. It ends with a 2-page cram sheet for the night before.
What is the DSST Money and Banking exam?
The DSST Money and Banking exam is a 120-minute, computer-based test from Prometric with about 100 multiple-choice questions. A score of 400 on the 200–500 scale earns an ACE credit recommendation of 3 semester hours, though each college sets its own policy. The exam covers 6 content areas; the heaviest is Commercial Banks and Other Financial Intermediaries at 25%.
More questions about the DSST Money and Banking exam (21)
How many questions are on the DSST Money and Banking exam, and how long is it?
It contains 100 questions to be answered in 2 hours.
What is the passing score for DSST Money and Banking?
The passing score is 400 on a 200–500 scale. At 400 or above, the American Council on Education (ACE) recommends 3 semester hours. Each college sets its own passing score and credit award, so check your school's policy before you book.
How much does the DSST Money and Banking exam cost?
The exam fee is $100, paid to Prometric. Test centers may add their own administration fee. Eligible U.S. military service members can usually test for free through DANTES.
How many college credits is DSST Money and Banking worth?
ACE recommends 3 semester hours for a passing score of 400. Your college decides how many credits it awards and which course they replace. Check your college's policy.
Can I use a calculator on the DSST Money and Banking exam?
No. This exam doesn't allow a calculator.
Is there a penalty for guessing on DSST Money and Banking?
No. Your score counts only correct answers, so a wrong answer costs nothing. Never leave a question blank: rule out what you can and pick your best guess.
What topics are on the DSST Money and Banking exam?
6 content areas, from the official outline: Commercial Banks and Other Financial Intermediaries (25%); Central Banking and the Federal Reserve System (20%); Monetary Policy in the United States (20%); Money and Macroeconomic Activity (19%); The International Monetary System (10%); The Role and Kinds of Money (6%).
Which DSST Money and Banking topics should I study first?
Start with the three heaviest: Commercial Banks and Other Financial Intermediaries (25%), Central Banking and the Federal Reserve System (20%) and Monetary Policy in the United States (20%). Together they are about 65% of the exam, roughly 65 of 100 questions. The guide's chapters run in that order, heaviest first.
Is the DSST Money and Banking exam hard?
It depends on what you already know. No single area dominates: the largest, Commercial Banks and Other Financial Intermediaries, is 25% and the smallest, the Role and Kinds of Money, is 6%, so broad coverage matters more than deep expertise in one topic. Take the free diagnostic above to see where you stand in about 10 minutes.
What kinds of questions are on the DSST Money and Banking exam?
The guide sorts them into 5 types: “Name the function or concept”, “Cause and effect”, “Institution and purpose”, “Calculation” and “Which is true of a historical episode or regime”. Every question has 4 answer choices. Try the 10 free questions above to see the style.
How long should I study for DSST Money and Banking?
Use the diagnostic to decide. If you already know most areas, two weeks of daily review is often enough; if the subject is new to you, plan on eight. The full guide has 2-, 4- and 8-week plans built from the exam weights.
How should I pace myself on the DSST Money and Banking exam?
On average you have about 72 seconds per question (120 minutes for 100 questions). Be past question 33 a third of the way through and past question 67 two-thirds through. If a question takes more than a minute, pick your best guess, mark it and come back.
What happens if I don't pass DSST Money and Banking?
You can retake a DSST exam after 30 days. Use the wait to work through the areas the score report and the diagnostic show you missed.
Do colleges accept DSST Money and Banking for credit?
DSST exams are accepted at more than 1,500 colleges and universities, but each school decides which exams it accepts, the score it requires and the credit it gives. Look up your college's DSST policy before you book.
How up to date is this DSST Money and Banking guide?
Last updated 2026. The exam details were checked against Prometric's published exam information in 2026. Exams change, so confirm the details on the official exam page before you register.
What should I do the night before the exam?
Read the cram sheet once, slowly. Check your test time, the location or remote-proctoring setup, and the ID you need. Then sleep: a rested brain recalls more than a crammed one. In the morning, skim the memory tricks and common traps, then stop studying.
What textbooks does DSST recommend for Money and Banking?
The DSST fact sheet lists Mishkin's The Economics of Money, Banking, and Financial Markets and Financial Institutions, Markets, and Money by Kidwell, Peterson and Blackwell. DSST suggests checking any textbook against the content outline and using more than one source.
What should I know about the Federal Reserve for DSST Money and Banking?
Central Banking and the Federal Reserve System is 20% of the exam and covers the Fed's history, structure and current monetary management. Know the Board of Governors, the 12 regional Federal Reserve Banks and the FOMC, and how open-market operations, the discount rate, reserve requirements and interest on reserves affect the money supply and interest rates.
Which economic theories are on DSST Money and Banking?
Classical and Keynesian economics, monetarism and rational expectations, and the link between money and inflation. Together they make up Money and Macroeconomic Activity, 19% of the exam, so know how each school views the effect of money on output and prices.
Does DSST Money and Banking cover financial crises?
Yes. Historical U.S. financial crises are listed under monetary policy, and international debt crises under the international monetary system.
Can I take DSST Money and Banking online?
Yes. DSST exams can be taken at a test center or online with a remote Prometric proctor.
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DSST® is a registered trademark of Prometric, which was not involved in producing this guide and does not endorse it. TransferCredit.org is independent and not affiliated with Prometric. © 2026 UPI Globale Edu Inc.