Exam 3: Financial Instruments, Financial Markets, and Financial Institutions

Describe what is likely to happen to the average price of a share of stock if the stock markets decide to close every Friday and Monday to provide workers at the exchanges with longer weekends.

A high school basketball player decides to bypass college and go right into the NBA (the National Basketball Association).Describe the risk the individual is taking and a contract that might transfer the risk.

Which of the following is not a financial instrument?

A primary financial market is:

A bank is a financial intermediary.Which of the following statements is most accurate?

Which of the following is likely to be a primary financial market transaction?

Financial markets enable the transfer of risk by:

Commissions paid to a stock broker are an example of:

The U.S.government finances its budget deficits:

Which of the following is not one of fundamental characteristics that influence the value of a financial instrument?

Financial intermediaries include each of the following, except:

The primary use of derivative contracts is:

Financial instruments and money share which of the following characteristics?

Which of the following financial instruments is used mainly to transfer risk?

Financial instruments are used to channel funds from:

The owner of a small business applies for a bank loan and tells the loan officer that the funds will be used to expand inventory for the upcoming holiday season.The small business finds itself in need of additional funds to meet the monthly rent for the next quarter and the owner uses the loan proceeds to pay the rent.This is an example of:

Disability Income Insurance:

Brokerage commissions:

Juan purchases automobile insurance; the insurance contract is:

Most funds that flow between lenders and borrowers: