Question 1

A corporation acquires new funds only when its securities are sold in the

Accepted Answer

A) primary market by an investment bank. 
B) primary market by a stock exchange broker. 
C) secondary market by a securities dealer. 
D) secondary market by a commercial bank. 
A) primary market by an investment bank. 
B) primary market by a stock exchange broker. 
C) secondary market by a securities dealer. 
D) secondary market by a commercial bank.

Question 2

Securities are ________ for the person who buys them,but are ________ for the individual or firm that issues them.

Accepted Answer

A) assets; liabilities 
B) liabilities; assets 
C) negotiable; nonnegotiable 
D) nonnegotiable; negotiable 
A) assets; liabilities 
B) liabilities; assets 
C) negotiable; nonnegotiable 
D) nonnegotiable; negotiable

Question 3

An investment intermediary that lends funds to consumers is

Accepted Answer

A) a finance company. 
B) an investment bank. 
C) a finance fund. 
D) a consumer company. 
A) a finance company. 
B) an investment bank. 
C) a finance fund. 
D) a consumer company.

Question 4

Secondary markets make financial instruments more

Accepted Answer

A) solid. 
B) vapid. 
C) liquid. 
D) risky. 
A) solid. 
B) vapid. 
C) liquid. 
D) risky.

Question 5

Which of the following can be described as direct finance?

Accepted Answer

A) You take out a mortgage from your local bank. 
B) You borrow $2500 from a friend. 
C) You buy shares of common stock in the secondary market. 
D) You buy shares in a mutual fund. 
A) You take out a mortgage from your local bank. 
B) You borrow $2500 from a friend. 
C) You buy shares of common stock in the secondary market. 
D) You buy shares in a mutual fund.

Question 6

In a(n)________ market,dealers in different locations buy and sell securities to anyone who comes to them and is willing to accept their prices.

Accepted Answer

A) exchange 
B) over-the-counter 
C) common 
D) barter 
A) exchange 
B) over-the-counter 
C) common 
D) barter

Question 7

Asymmetric information is a universal problem.This would suggest that financial regulations

Accepted Answer

A) in industrial countries are an unqualified failure. 
B) differ significantly around the world. 
C) in industrialized nations are similar. 
D) are unnecessary. 
A) in industrial countries are an unqualified failure. 
B) differ significantly around the world. 
C) in industrialized nations are similar. 
D) are unnecessary.

Question 8

Which of the following is an example of an intermediate-term debt?

Accepted Answer

A) A thirty-year mortgage. 
B) A sixty-month car loan. 
C) A six month loan from a finance company. 
D) A Treasury bond. 
A) A thirty-year mortgage. 
B) A sixty-month car loan. 
C) A six month loan from a finance company. 
D) A Treasury bond.

Question 9

Which of the following are not traded in a capital market?

Accepted Answer

A) U.S.government agency securities 
B) State and local government bonds 
C) Repurchase agreements 
D) Corporate bonds 
A) U.S.government agency securities 
B) State and local government bonds 
C) Repurchase agreements 
D) Corporate bonds

Question 10

Contractual savings institutions include

Accepted Answer

A) mutual savings banks. 
B) money market mutual funds. 
C) commercial banks. 
D) life insurance companies. 
A) mutual savings banks. 
B) money market mutual funds. 
C) commercial banks. 
D) life insurance companies.

Question 11

Which of the following is not a secondary market?

Accepted Answer

A) foreign exchange market 
B) futures market 
C) options market 
D) IPO market 
A) foreign exchange market 
B) futures market 
C) options market 
D) IPO market

Question 12

Although the dominance of ________ over ________ is clear in all countries,the relative importance of bond versus stock markets differs widely.

Accepted Answer

A) financial intermediaries; securities markets 
B) financial intermediaries; government agencies 
C) government agencies; financial intermediaries 
D) government agencies; securities markets 
A) financial intermediaries; securities markets 
B) financial intermediaries; government agencies 
C) government agencies; financial intermediaries 
D) government agencies; securities markets

A corporation acquires new funds only when its securities are sold in the

Securities are for the person who buys them,but are for the individual or firm that issues them.

An investment intermediary that lends funds to consumers is

Secondary markets make financial instruments more

Which of the following can be described as direct finance?

In a(n)________ market,dealers in different locations buy and sell securities to anyone who comes to them and is willing to accept their prices.

Asymmetric information is a universal problem.This would suggest that financial regulations

Which of the following is an example of an intermediate-term debt?

Which of the following are not traded in a capital market?

Contractual savings institutions include

Which of the following is not a secondary market?

Although the dominance of over is clear in all countries,the relative importance of bond versus stock markets differs widely.

Why Study Money, banking, and Financial Markets

What Is Money

Understanding Interest Rates

The Behavior of Interest Rates

The Risk and Term Structure of Interest Rates

The Stock Market, the Theory of Rational Expectations, and the Efficient Market Hypothesis

An Economic Analysis of Financial Structure

Financial Crises

Banking and the Management of Financial Institutions

Economic Analysis of Financial Regulation

Banking Industry: Structure and Competition

Central Banks and the Federal Reserve System

The Money Supply Process

Tools of Monetary Policy

The Conduct of Monetary Policy: Strategy and Tactics

The Foreign Exchange Market

The International Financial System

Quantity Theory,inflation and the Demand for Money

The Is Curve

The Monetary Policy and Aggregate Demand Curves

Aggregate Demand and Supply Analysis

Monetary Policy Theory

The Role of Expectations in Monetary Policy

Transmission Mechanisms of Monetary Policy

The ISLM Model

Filters

Exam 2: An Overview of the Financial System

A corporation acquires new funds only when its securities are sold in the

Securities are ________ for the person who buys them,but are ________ for the individual or firm that issues them.

An investment intermediary that lends funds to consumers is

Secondary markets make financial instruments more

Which of the following can be described as direct finance?

In a(n)________ market,dealers in different locations buy and sell securities to anyone who comes to them and is willing to accept their prices.

Asymmetric information is a universal problem.This would suggest that financial regulations

Which of the following is an example of an intermediate-term debt?

Which of the following are not traded in a capital market?

Contractual savings institutions include

Which of the following is not a secondary market?

Although the dominance of ________ over ________ is clear in all countries,the relative importance of bond versus stock markets differs widely.

Why Study Money, banking, and Financial Markets

What Is Money

Understanding Interest Rates

The Behavior of Interest Rates

The Risk and Term Structure of Interest Rates

The Stock Market, the Theory of Rational Expectations, and the Efficient Market Hypothesis

An Economic Analysis of Financial Structure

Financial Crises

Banking and the Management of Financial Institutions

Economic Analysis of Financial Regulation

Banking Industry: Structure and Competition

Central Banks and the Federal Reserve System

The Money Supply Process

Tools of Monetary Policy

The Conduct of Monetary Policy: Strategy and Tactics

The Foreign Exchange Market

The International Financial System

Quantity Theory,inflation and the Demand for Money

The Is Curve

The Monetary Policy and Aggregate Demand Curves

Aggregate Demand and Supply Analysis

Monetary Policy Theory

The Role of Expectations in Monetary Policy

Transmission Mechanisms of Monetary Policy

The ISLM Model

Filters

Securities are for the person who buys them,but are for the individual or firm that issues them.

Although the dominance of over is clear in all countries,the relative importance of bond versus stock markets differs widely.