Question 1

Bonds with ratings of BB and below are classified as speculative or junk bonds.

Accepted Answer

A) True 
 B)False

Question 2

M2 includes __________ M1.

Accepted Answer

A) all of 
B) none of 
C) some of 
D) half of 
A) all of 
B) none of 
C) some of 
D) half of

Question 3

Savings banks were originally established to make __________ loans.

Accepted Answer

A) home mortgage 
B) business 
C) agricultural 
D) automobile 
A) home mortgage 
B) business 
C) agricultural 
D) automobile

Question 4

Commercial paper is securities sold by corporations,such as Raytheon,that mature from 1 to 270 months from the date of issue.

Accepted Answer

A) True 
 B)False

Question 5

Businesses are net savers,while households are net users of funds.

Accepted Answer

A) True 
 B)False

Question 6

In the secondary market,firms and governments issue securities and sell them initially to the public.

Accepted Answer

A) True 
 B)False

Question 7

Deposit insurance shifts most of the financial risk of bank failures from the depositors to __________.

Accepted Answer

A) the bank's creditors 
B) the bank's stockholders 
C) the borrowers 
D) the federal agency. 
A) the bank's creditors 
B) the bank's stockholders 
C) the borrowers 
D) the federal agency.

Question 8

If the money supply grows too rapidly,inflationary pressures will begin to build.

Accepted Answer

A) True 
 B)False

Question 9

The rate the Fed charges member banks for short-term loans is called the __________.

Accepted Answer

A) discount rate 
B) margin rate 
C) federal funds rate 
D) reserve requirement 
A) discount rate 
B) margin rate 
C) federal funds rate 
D) reserve requirement

Question 10

The NASDAQ is a computerized communications network that links member investment firms and is the world's largest intranet.

Accepted Answer

A) True 
 B)False

Question 11

Daily trading on the AMEX market is _____ shares.

Accepted Answer

A) over 10 billion 
B) over 2 billion 
C) about 500 million 
D) less than 100 million 
A) over 10 billion 
B) over 2 billion 
C) about 500 million 
D) less than 100 million

Question 12

The basic form of corporate ownership is embodied in _____.

Accepted Answer

A) preferred stock 
B) standard stock 
C) convertible securities 
D) common stock 
A) preferred stock 
B) standard stock 
C) convertible securities 
D) common stock

Question 13

The Securities and Exchange Commission requires virtually all new public issues of corporate securities to be registered.As part of the registration process for a new security issue,the issuer must prepare a(n)_____.

Accepted Answer

A) essay 
B) prospectus 
C) application 
D) financial report 
A) essay 
B) prospectus 
C) application 
D) financial report

Question 14

Most nations do not have a central bank similar to the U.S.Federal Reserve.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following interest rates does the Federal Reserve actually set?

Accepted Answer

A) Federal funds rate 
B) Discount rate 
C) Government bond rate 
D) Commercial paper rate 
A) Federal funds rate 
B) Discount rate 
C) Government bond rate 
D) Commercial paper rate

Question 16

The _____ is a collection of financial markets in which previously issued securities are traded among investors.

Accepted Answer

A) primary market 
B) secondary market 
C) government market 
D) super market 
A) primary market 
B) secondary market 
C) government market 
D) super market

Question 17

Which of the following U.S.institutions is among the world's 20 largest banks?

Accepted Answer

A) Citizens Financial Group 
B) HSBC North America Holdings 
C) JPMorgan Chase 
D) Ally Financial 
A) Citizens Financial Group 
B) HSBC North America Holdings 
C) JPMorgan Chase 
D) Ally Financial

Question 18

Complete the following using the terms listed.
a.bonds
b.Commercial banks
c.NASDAQ
d.Credit unions
e.financial system
f.call provision
g.insider trading
h.Federal Open Market Committee (FOMC)
i.Securities
j.New York Stock Exchange
k.Internet-only banks
l.limit order
m.debentures
n.primary market
o.net savers
-The _____ sets most policies concerning monetary policy and interest rates.

Accepted Answer

The answer of Complete the following using the terms listed.
a.bonds
b.Commercial...

Question 19

Which of the following statements concerning the Fed is incorrect?

Accepted Answer

A) The Fed is the nation's central bank. 
B) The Fed acts as the banker's bank. 
C) Credit unions and savings banks must belong to the Fed. 
D) Virtually,all large commercial banks are Fed members. 
A) The Fed is the nation's central bank. 
B) The Fed acts as the banker's bank. 
C) Credit unions and savings banks must belong to the Fed. 
D) Virtually,all large commercial banks are Fed members.

Question 20

Explain the differences between market orders and limit orders.

Accepted Answer

The most common type of order is called

Bonds with ratings of BB and below are classified as speculative or junk bonds.

M2 includes __________ M1.

Savings banks were originally established to make __________ loans.

Commercial paper is securities sold by corporations,such as Raytheon,that mature from 1 to 270 months from the date of issue.

Businesses are net savers,while households are net users of funds.

In the secondary market,firms and governments issue securities and sell them initially to the public.

Deposit insurance shifts most of the financial risk of bank failures from the depositors to __________.

If the money supply grows too rapidly,inflationary pressures will begin to build.

The rate the Fed charges member banks for short-term loans is called the __________.

The NASDAQ is a computerized communications network that links member investment firms and is the world's largest intranet.

Daily trading on the AMEX market is _____ shares.

The basic form of corporate ownership is embodied in _____.

The Securities and Exchange Commission requires virtually all new public issues of corporate securities to be registered.As part of the registration process for a new security issue,the issuer must prepare a(n)_____.

Most nations do not have a central bank similar to the U.S.Federal Reserve.

Which of the following interest rates does the Federal Reserve actually set?

The _____ is a collection of financial markets in which previously issued securities are traded among investors.

Which of the following U.S.institutions is among the world's 20 largest banks?

Which of the following statements concerning the Fed is incorrect?

Explain the differences between market orders and limit orders.

The Changing Face of Business

Business Ethics and Social Responsibility

Economic Challenges Facing Todays Business

Competing in World Markets

Forms of Business Ownership and Organization

Starting Your Own Business: the Entrepreneurship Alternative

Management,leadership,and the Internal Organization

Human Resource Management: From Recruitment to Labor Relations

Top Performance Through Empowerment, teamwork, and Communication

Production and Operations Management

Customer-Driven Marketing

Product and Distribution Strategies

Promotion and Pricing Strategies

Using Technology to Manage Information

Understanding Accounting and Financial Statements

Financial Management

Trends in E-Commerce

Filters

Exam 16: The Financial System

Bonds with ratings of BB and below are classified as speculative or junk bonds.

M2 includes __________ M1.

Savings banks were originally established to make __________ loans.

Commercial paper is securities sold by corporations,such as Raytheon,that mature from 1 to 270 months from the date of issue.

Businesses are net savers,while households are net users of funds.

In the secondary market,firms and governments issue securities and sell them initially to the public.

Deposit insurance shifts most of the financial risk of bank failures from the depositors to __________.

If the money supply grows too rapidly,inflationary pressures will begin to build.

The rate the Fed charges member banks for short-term loans is called the __________.

The NASDAQ is a computerized communications network that links member investment firms and is the world's largest intranet.

Daily trading on the AMEX market is _____ shares.

The basic form of corporate ownership is embodied in _____.

The Securities and Exchange Commission requires virtually all new public issues of corporate securities to be registered.As part of the registration process for a new security issue,the issuer must prepare a(n)_____.

Most nations do not have a central bank similar to the U.S.Federal Reserve.

Which of the following interest rates does the Federal Reserve actually set?

The _____ is a collection of financial markets in which previously issued securities are traded among investors.

Which of the following U.S.institutions is among the world's 20 largest banks?

Which of the following statements concerning the Fed is incorrect?

Explain the differences between market orders and limit orders.

The Changing Face of Business

Business Ethics and Social Responsibility

Economic Challenges Facing Todays Business

Competing in World Markets

Forms of Business Ownership and Organization

Starting Your Own Business: the Entrepreneurship Alternative

Management,leadership,and the Internal Organization

Human Resource Management: From Recruitment to Labor Relations

Top Performance Through Empowerment, teamwork, and Communication

Production and Operations Management

Customer-Driven Marketing

Product and Distribution Strategies

Promotion and Pricing Strategies

Using Technology to Manage Information

Understanding Accounting and Financial Statements

Financial Management

Trends in E-Commerce

Filters