Test Bank for Financial Markets & Institutions 14e (Madura) | ISBN: 9780357988299 | Complete All Chapters 1-27 | A+ Graded Exam Prep Recommended

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,1. Financial market participants who provide funds are called
q q q q q q q




a. deficit units. q




b. surplus units. q




c. primary units. q




d. secondary units. q




ANSWER: b
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: q Multiple Choice q




HAS VARIABLES:
q False
LEARNING OBJECTIVES:q FMAI.MADU.15.01.01
NATIONAL STANDARDS: q United States - BUSPROG.FMAI.MADU.15.03
q q q




STATE STANDARDS:
q United States - OH - DISC.FMAI.MADU.15.02
q q q q q




KEYWORDS: Bloom's: Knowledge q




DATE CREATED:
q 9/15/2016 6:38 AM q q



DATE MODIFIED:
q 9/16/2016 1:14 AM q q




2. Which of the following is NOT an issuer of bonds?
q q q q q q q q q



a. households
b. corporations
c. the U.S. Treasury
q q




d. government agencie q



s
ANSWER: a
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: q Multiple Choice q




HAS VARIABLES:
q False
LEARNING OBJECTIVES:q FMAI.MADU.15.01.01
NATIONAL STANDARDS: q United States - BUSPROG.FMAI.MADU.15.03 q q q




STATE STANDARDS:
q United States - OH - DISC.FMAI.MADU.15.02 q q q q q




KEYWORDS: Bloom's: Knowledge q




DATE CREATED:
q 9/16/2016 1:15 AM q q



DATE MODIFIED:
q 5/1/2018 11:55 AM q q




3. Behavioral finance q



a. applies concepts from sociology and anthropology to the behavior of market participants.
q q q q q q q q q q q




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, b. studies the behavior of financial markets in response to changes in Federal Reserve polic
q q q q q q q q q q q q q



y.
c. applies psychology to financial decision making.
q q q q q




d. explains why markets are efficient. q q q q




ANSWER: c
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: q Multiple Choice q




HAS VARIABLES:
q False
LEARNING OBJECTIVES:q FMAI.MADU.15.01.01
NATIONAL STANDARDS: q United States - BUSPROG.FMAI.MADU.15.03 q q q




STATE STANDARDS:
q United States - OH - DISC.FMAI.MADU.15.02 q q q q q




KEYWORDS: Bloom's: Knowledge q




DATE CREATED:
q 9/16/2016 1:18 AM q q



DATE MODIFIED:
q 9/16/2016 1:21 AM q q




4. Those financial markets that facilitate the flow of short-term funds are known as:
q q q q q q q q q q q q



a. money markets q




b. capital markets q




c. primary markets q




d. secondary markets q




ANSWER: a
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: q Multiple Choice q




HAS VARIABLES:
q False
LEARNING OBJECTIVES:q FMAI.MADU.15.01.02
NATIONAL STANDARDS: q United States - BUSPROG.FMAI.MADU.15.02 q q q




STATE STANDARDS:
q United States - OH - DISC.FMAI.MADU.15.02 q q q q q




KEYWORDS: Bloom's: Knowledge q




DATE CREATED:
q 9/16/2016 1:21 AM q q



DATE MODIFIED:
q 5/1/2018 11:56 AM q q




5. Funds are provided to the initial issuer of securities in the:
q q q q q q q q q q



a. secondary market q




b. primary market q




c. deficit market q




d. surplus market q




ANSWER: b
POINTS: 1

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q

, DIFFICULTY: Easy
QUESTION TYPE: q Multiple Choice q




HAS VARIABLES:
q False
LEARNING OBJECTIVES: q FMAI.MADU.15.01.01
NATIONAL STANDARDS: q United States - BUSPROG.FMAI.MADU.15.03
q q q




STATE STANDARDS:
q United States - OH - DISC.FMAI.MADU.15.02
q q q q q




KEYWORDS: Bloom's: Knowledge q




DATE CREATED:
q 9/16/2016 1:24 AM q q



DATE MODIFIED:
q 5/1/2018 12:26 PM q q




6. Which of the following is a capital market instrument?
q q q q q q q q



a. a six-month certificate of deposit
q q q q




b. a three-month Treasury bill
q q q




c. a ten-year bond
q q




d. an agreement for a bank to loan funds directly to a company for nine month
q q q q q q q q q q q q q q



s
ANSWER: c
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: q Multiple Choice q




HAS VARIABLES:
q False
LEARNING OBJECTIVES: q FMAI.MADU.15.01.02
NATIONAL STANDARDS: q United States - BUSPROG.FMAI.MADU.15.03 q q q




STATE STANDARDS:
q United States - OH - DISC.FMAI.MADU.15.02 q q q q q




KEYWORDS: Bloom's: Comprehension q




DATE CREATED:
q 9/16/2016 1:27 AM q q



DATE MODIFIED:
q 9/16/2016 1:29 AM q q




7. Which of the following is a money market security?
q q q q q q q q



a. Treasury note q




b. municipal bond q




c. mortgage
d. commercial paper q




ANSWER: d
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: q Multiple Choice q




HAS VARIABLES:
q False
LEARNING OBJECTIVES: q FMAI.MADU.15.01.02
NATIONAL STANDARDS: q United States - BUSPROG.FMAI.MADU.15.03 q q q




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