A bond with a maturity of less than one year is classified as which of the following? Show
Choose one answer.
. . A debt instrument can be issued by which of the following? Choose one answer.
. . A deposits funds with B for safekeeping. B lends the funds to C and charges C interest. Which of the following is true? Choose one answer.
. . A financial instrument that promises to pay the holder a certain fixed amount periodically, and upon maturity pays the face value of the instrument is called which of the following? Choose one answer.
. . A financial instrument which does not promise the holder any fixed payment but entitles him/her to a claim of the net income is called which of the following? Choose one answer.
. . A government issues securities with maturities of six months. These securities would be known as which of the following? Choose one answer.
. . A new ten-year bond will be bought and sold in what market? Choose one answer.
. . Complete the following statement. Adverse selection occurs when: Choose one answer.
. . Complete the following statement. Capital market instruments have maturities of: Choose one answer.
. . Complete the following statement. Money market instruments have maturities of: Choose one answer.
. . Complete the following statement. The federal funds market is the market where: Choose one answer.
. . Complete the following statement. The problem of adverse selection in financial markets, which financial intermediaries have evolved to minimize, refers to the difficulty in: Choose one answer.
. . Consider whether the following statement is true or false and how so. Money is useful only when it can be held in the hand. Choose one answer.
. . Corporate bonds are issued by which of the following? Choose one answer.
. . Fill in the blanks. Financial intermediaries are the major means of moving funds from savers to borrowers, because they are able to provide financial services at ______ by taking advantage of ______. Choose one answer.
. . Fill in the blanks. Financial intermediaries are efficient at moving funds from savers to borrowers, because they ______ by ______. Choose one answer.
. . Fill in the blanks. In a world where there is only direct financing, small savers would be subject to ______, because their portfolios would not be sufficiently ______. Choose one answer.
. . Fill in the blanks. The presence of asymmetric information in financial markets leads to ______ as people with investment opportunities ______. Choose one answer.
. . Fill in the blanks. Underwriting is undertaken by __________ when they __________. Choose one answer.
. . Fill in the blanks. When a company wants to raise money from financial markets, it may go to _________, which will help it issue a(n) __________. Choose one answer.
. . Financial intermediaries succeed in lending and borrowing by doing which of the following? Choose one answer.
. . First All Bank is a financial intermediary. This means that First All Bank does which of the following? Choose one answer.
. . How do financial markets promote economic development? Choose one answer.
. . How do financial markets promote economic efficiency? Choose one answer.
. . I lend funds to Jake, who has a reputation of being trustworthy. He turns around and lends the funds to Jane, whom I do not know. Which of the following characterizes Jake’s role? Choose one answer.
. . If money is a unit of account, then which of the following is true? Choose one answer.
. . In a certain society, people use shells as a means of payment and store of value. The unit of account is gold. Which of the following is true of this economy? Choose one answer.
. . In a public school, everybody will accept a bubblegum as payment for goods or services rendered, even if they do not like bubblegum. Bubblegum in this school is considered which of the following? Choose one answer.
. . In direct finance, as opposed to indirect finance, the transaction is between what entities? Choose one answer.
. . James, John, and Kojo buy houses with funds from First All Bank. First All Bank puts all three loan agreements together, divides them into one hundred pieces of financial instruments, and sells them to several investors. The one hundred financial instruments can be accurately described as which of the following? Choose one answer.
. . Joan borrows $100.00 from her sister with the promise to repay at the end of the month. Her sister goes to the bank to withdraw $100.00 from her bank account to give it to her. This is an instance of which of the following? Choose one answer.
. . Loans to households to buy houses generate which of the following? Choose one answer.
. . Money functions as which of the following? Choose one answer.
. . Moral hazard occurs when a borrower does which of the following? Choose one answer.
. . Pam asks her mother for a loan. Her mother does not have it, so she borrows from her sister, and gives it to Pam. This transaction can be described as which of the following? Choose one answer.
. . Repurchase agreements (repos) can be classified as which of the following type of economic instrument? Choose one answer.
. . Stocks are issued by which of the following? Choose one answer.
. . The payment you receive for working is called which of the following? Choose one answer.
. . Treasury bills are issued by which of the following? Choose one answer.
. . What are commercial papers? Choose one answer.
. . What are convertible corporate bonds? Choose one answer.
. . What are equities? Choose one answer.
. . What are Eurodollars? Choose one answer.
. . What are treasury bills? Choose one answer.
. . What is a Eurobond? Choose one answer.
. . What is a secondary market? Choose one answer.
. . What is an asset-backed security? Choose one answer.
. . What is the Federal Funds rate? Choose one answer.
. . What would be a consequence of the failure of financial markets? Choose one answer.
. . When a business borrows directly from a saver, the business incurs which of the following? Choose one answer.
. . When a business borrows directly from financial markets, it issues which of the following? Choose one answer.
. . When a person lends to a business in the financial market, the person acquires which of the following? Choose one answer.
. . When an individual takes out a loan from a bank to buy a car, the individual issues which of the following? Choose one answer.
. . Which of the following is a main reason for the dominance of financial intermediaries in the economy? Choose one answer.
. . Which of the following is the best functional definition of money? Choose one answer.
. . Which scenario best describes direct finance and not indirect finance? Choose one answer.
. . Who are the participants in financial markets? Choose one answer.
. . Why are bonds issued by municipalities to finance large projects attractive to investors? Choose one answer.
. . Why are financial markets important in the economy? Choose one answer.
. . Why is an efficient secondary market essential for an efficient financial market? Choose one answer.
. . Why is indirect finance more important than direct finance in the U.S. economy? Choose one answer.
. . Why would a modern economy not operate efficiently without money? Choose one answer.
. . Without financial intermediaries, why would small savers not benefit from financial markets? Choose one answer.
. . A commercial paper with a ten year maturity pays an annual interest rate of 7%, while a U.S. government bond with the same maturity pays 5%. What could account for the difference? Choose one answer.
. . Amelia gives Ben a one-hundred dollar loan payable in a year. She tells him that when he repays her, he should make sure that the repayment can buy as many hamburgers as the initial one hundred dollars bought. What would be the correct inference from Amelia’s stipulation? Choose one answer.
. . Arianna took a one-year loan from Sammy at an interest rate of 7% at a time when expected inflation was 3%. The actual inflation turned out to be 10%. Which of the following is true? Choose one answer.
. . Complete the following statement. Interest rates on Greek Sovereign Bonds are higher than on German Sovereign Bonds. One possible explanation may be that: Choose one answer.
. . Complete the following statement. The more easily a security can be sold and bought: Choose one answer.
. . Complete the following statement. The present discounted value of a stream of cash payments will always be: Choose one answer.
. . Consider the following equation, where PV is the present value, CFi is the cash flow at time i, and n is the number of years. Which of the following is a proper interpretation of r? Choose one answer.
. . Erica borrows $1,000.00 from Jorge. Jorge demands repayment in a year in the amount of $1,100.00. What is the yield to maturity? Choose one answer.
. . Erica borrows $1,000.00 from Jorge. Jorge demands repayment in a year in the amount of $1,100.00. What is the yield to maturity? Choose one answer.
. . Everything else remaining constant, if the risk associated with holding security increases, what will happen to the price and interest rate? Choose one answer.
. . How is risk premium defined? Choose one answer.
. . If the risk associated with holding an asset increases and expected inflation also increases, then what will happen to the equilibrium interest rate? Choose one answer.
. . In Table 1 below, what will be the interest rate on a two-year bond? TABLE 1 Choose one answer.
. . In Table 1 below, what will be the slope of the yield curve? TABLE 1 Choose one answer.
. . The interest rate is determined by which of the following? Choose one answer.
. . The rate of return on a security or bond can be negative under which circumstance? Choose one answer.
. . The real interest rate is measured by which of the following? Choose one answer.
. . The U.S. government is running a big budget deficit and plans to finance the deficit by borrowing. If everything else remaining constant, then what will happen to the demand for bonds? Choose one answer.
. . The U.S. government is running a big budget deficit and plans to finance the deficit by borrowing. If everything else remaining constant, then what will happen to the supply of bonds and the interest rate? Choose one answer.
. . The U.S. government is running a big budget deficit and plans to finance it by borrowing. If everything else remaining constant, then what will happen to the price of bonds and the interest rate? Choose one answer.
. . Under what condition will real interest rate in the economy be negative? Choose one answer.
. . What does an upward sloping yield curve imply? Choose one answer.
. . What is the yield to maturity? Choose one answer.
. . Why is one hundred dollars today not the same as one hundred dollars a year from now? Choose one answer.
. . Why is the yield to maturity on municipal bonds with maturity of 15 years lower than the yield to maturity on U.S. government bonds with maturity of 15 years? Choose one answer.
. . Why would the interest rate on U.S. government bonds be lower than the interest rate on Mexican government bonds? Choose one answer.
. . You buy a municipal bond with a face value of $1,000.00. The fixed interest payment is $100.00 a year. The bond matures in ten years. Five years before maturity, you sell the bond for $1,000.00. What will the rate of return be? Choose one answer.
. . You buy a municipal bond with a face value of $1,000.00. The fixed interest payment is $100.00 a year. The bond matures in ten years. Five years before maturity, you decide to sell. What will the yield to maturity be? Choose one answer.
. . You win a lottery which promises to pay you $1,000.00 over five years in equal installments. The interest rate is 5%. The amount you won is actually closest to what amount? Choose one answer.
. . A firm accepts and keeps funds for several people with the promise that they can withdraw them anytime they want. The same firm then lends the funds to borrowers. Which of the following best identifies this type of firm? Choose one answer.
. . Banks are regulated, because governments want them to do which of the following? Choose one answer.
. . Complete the following statement. Asymmetric information reduces financial transactions, because: Choose one answer.
. . Complete the following statement. Banks are regulated because governments want them to: Choose one answer.
. . Fill in the blanks. By lending to many borrowers, financial intermediaries ______ through ______. Choose one answer.
. . Fill in the blanks. Financial markets foster economic growth by facilitating the transfer of funds from ______ to ______. Choose one answer.
. . In an effort to minimize bank failures through deposits insurance, regulators may increase which of the following? Choose one answer.
. . The asymmetric information problem that occurs after a financial transaction is called which of the following? Choose one answer.
. . To minimize asymmetric information in financial markets, banks and financial institutions have to do which of the following? Choose one answer.
. . Which of the following reasons accurately explains why governments regulate banks? Choose one answer.
. . Which of the following reasons accurately explains why governments regulate banks? Choose one answer.
. . Which of the following reasons explains why financial institutions are heavily regulated? Choose one answer.
. . A central bank mandate might be established in order to do which of the following? Choose one answer.
. . Complete the following statement. If the Federal Reserve Bank uses the money supply as a target, then: Choose one answer.
. . Complete the following statement. The effectiveness of monetary policy is often said to be asymmetric. This means that monetary policy is: Choose one answer.
. . In seeking to increase the money supply, the Federal Reserve Bank could do which of the following? Choose one answer.
. . One of the ways the Federal Reserve Bank can control the money supply is to do which of the following? Choose one answer.
. . The central bank can influence economic activity by doing which of the following? Choose one answer.
. . The Federal Open Market Committee (FOMC) of the Federal Reserve Bank is primarily responsible for which of the following? Choose one answer.
. . The Federal Reserve Bank of the U.S. is often said to have dual mandates. What is the purpose of dual mandates? Choose one answer.
. . To achieve the mandate of full employment, the Federal Reserve Bank could do which of the following? Choose one answer.
. . What is meant by interest rate targeting in the conduct of monetary policy? Choose one answer.
. . What is one of the major roles of central banks, such as the Federal Reserve Bank? Choose one answer.
. . What is the preferred method the Federal Reserve Bank uses to control the money supply? Choose one answer.
. . When the central bank sells securities, what does it seek to do? Choose one answer.
. . When the Federal Reserve Bank increases the monetary base, this is a sign that it wants which of the following to occur? Choose one answer.
. . Who heads the Federal Reserve System? Choose one answer.
. . Who owns the U.S. Federal Reserve? Choose one answer.
. . As an economy grows and people’s disposable income rises, what is likely to happen to the demand for foreign goods? Choose one answer.
. . C lowers its exchange rate with its major trading partner, U. With everything else being equal, which of the following is true? Choose one answer.
. . C produces refrigerators at a lower cost than U. With everything else being equal, the likely consequence might be which of the following? Choose one answer.
. . C produces refrigerators at a lower cost than U. With everything else being equal, what are the consequences of this observation? Choose one answer.
. . Complete the following statement. In the long run, the value of the U.S. dollar will rise relative to other currencies: Choose one answer.
. . Country C commits to maintaining parity of its currency with that of country U. What inference can be drawn from such a policy with everything else being equal? Choose one answer.
. . If a country’s income rises and the country increases its imports of another country’s goods, what will happen to the exchange rate of the importing country? Choose one answer.
. . If European goods are more to U.S. citizens what will be the result? Choose one answer.
. . If the exchange rate is allowed to be determined by the forces of demand and supply, the exchange rate regime is classified as which of the following? Choose one answer.
. . The demand for foreign currency by U.S. businesses and citizens derives from which of the following? Choose one answer.
. . The real exchange rate of the U.S. dollar in terms of the euro can be defined as which of the following? Choose one answer.
. . What will make the equilibrium exchange rate increase? Choose one answer.
. . Why is the foreign exchange market important for economic welfare? Choose one answer.
. . Without foreign exchange markets, citizens of different countries would have to do which of the following? Choose one answer.
. . An increase in the money supply, with everything else held constant, results in which of the following? Choose one answer.
. . Based on the diagram below, which of the following best describes what will happen when the money supply increases? Choose one answer.
. . Complete the following statement. According to a monetarist, attempts to use policy to stabilize the economy: Choose one answer.
. . If the money supply is growing at a rate of 3% a year, velocity is constant and real GDP is growing is growing at 2% a year, at what will inflation be in the economy? Choose one answer.
. . If the money supply is growing at a rate of 5%, real GDP is growing at a rate of 2% and velocity is growing at a rate of 1%, what will inflation be in the economy? Choose one answer.
. . What are the implications for policy when economic agents form rational expectations in making forecasts? Choose one answer.
. . What are the implications for the economy when economic agents form expectations adaptively? Choose one answer.
. . What do economists mean by the demand for money? Choose one answer.
. . What will be the impact of monetary policy if the LM curve is horizontal? Choose one answer.
. . What would an increase in the money supply do in the economy? Choose one answer.
. . When the economy is caught in a liquidity trap, which of the following is true? Choose one answer.
. . Which of the following statements is true of the demand for money? Choose one answer.
. . Why do Keynesians advocate activist fiscal policy as opposed to activist monetary policy? Choose one answer.
. . Why do monetarists see monetary policy as more effective than fiscal policy? Choose one answer.
. . Why is the constant money-growth-rate rule (CMG) a non-activist monetary policy instead of an activist monetary policy? Choose one answer.
. . Why might monetary policy be preferred to fiscal policy in stabilizing the economy? Choose one answer.
. . With everything else held constant, when income increases, what happens to the demand for money? Choose one answer.
. . When serving a customer who prefers the rational style Which of the following is a suitable action quizlet?When serving a customer who prefers the decisive style, which of the following is a suitable action that can be taken by the service provider? Maximize small talk and details. The process of continually evaluating products and services to ensure that maximum efficiency is obtained from them is called _____.
Is the anxiety that occurs when a customer has second thoughts immediately following a purchase?Post-purchase dissonance definition
Here's how we can define post-purchase dissonance (also called post-purchase stress): Post-purchase dissonance refers to the customer's level of dissatisfaction after buying a product or service from your online store.
Which of the following is a good strategy for salvaging relationships after conflict quizlet?Which of the following is a good strategy for salvaging relationships after conflict? Be realistic and recognize that it can be difficult to "forgive and forget."
When interacting with a talkative customer what is a positive course of action for the service provider?When interacting with a talkative customer, which of the following is a positive course of action for the service provider? Ask specific open-end questions.
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