j j j j j j j j j
by Jeff Madura j j
1. Financialjmarketjparticipantsjwhojprovidejfundsjarejcalled
a. deficitjunits.
b. surplusjunits.
c. primaryjunits.
d. secondaryjunits.
ANSWER: b
POINTS: 1
DIFFICULTY: Easy
QUESTIONjTYPE: MultiplejChoice
HASjVARIABLES: False
LEARNINGjOBJECTIVES: FMAI.MADU.15.01.01
NATIONALjSTANDARDS: UnitedjStatesj-jBUSPROG.FMAI.MADU.15.03
STATEjSTANDARDS: UnitedjStatesj-jOHj-jDISC.FMAI.MADU.15.02
KEYWORDS: Bloom's:jKnowledge
DATEjCREATED: 9/15/2016j6:38jAM
DATEjMODIFIED: 9/16/2016j1:14jAM
2. WhichjofjthejfollowingjisjNOTjanjissuerjofjbonds?
a. households
b. corporations
c. thejU.S.jTreasury
d. governmentjagencies
ANSWER: a
POINTS: 1
DIFFICULTY: Easy
QUESTIONjTYPE: MultiplejChoice
HASjVARIABLES: False
LEARNINGjOBJECTIVES: FMAI.MADU.15.01.01
NATIONALjSTANDARDS: UnitedjStatesj-jBUSPROG.FMAI.MADU.15.03
STATEjSTANDARDS: UnitedjStatesj-jOHj-jDISC.FMAI.MADU.15.02
KEYWORDS: Bloom's:jKnowledge
DATEjCREATED: 9/16/2016j1:15jAM
DATEjMODIFIED: 5/1/2018j11:55jAM
3. Behavioraljfinance
a. appliesjconceptsjfromjsociologyjandjanthropologyjtojthejbehaviorjofjmarketjparticipants.
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, b. studiesjthejbehaviorjofjfinancialjmarketsjinjresponsejtojchangesjinjFederaljReservejpolicy.
c. appliesjpsychologyjtojfinancialjdecisionjmaking.
d. explainsjwhyjmarketsjarejefficient.
ANSWER: c
POINTS: 1
DIFFICULTY: Easy
QUESTIONjTYPE: MultiplejChoice
HASjVARIABLES: False
LEARNINGjOBJECTIVES: FMAI.MADU.15.01.01
NATIONALjSTANDARDS: UnitedjStatesj-jBUSPROG.FMAI.MADU.15.03
STATEjSTANDARDS: UnitedjStatesj-jOHj-jDISC.FMAI.MADU.15.02
KEYWORDS: Bloom's:jKnowledge
DATEjCREATED: 9/16/2016j1:18jAM
DATEjMODIFIED: 9/16/2016j1:21jAM
4. Thosejfinancialjmarketsjthatjfacilitatejthejflowjofjshort-termjfundsjarejknownjas:
a. moneyjmarkets
b. capitaljmarkets
c. primaryjmarkets
d. secondaryjmarkets
ANSWER: a
POINTS: 1
DIFFICULTY: Easy
QUESTIONjTYPE: MultiplejChoice
HASjVARIABLES: False
LEARNINGjOBJECTIVES: FMAI.MADU.15.01.02
NATIONALjSTANDARDS: UnitedjStatesj-jBUSPROG.FMAI.MADU.15.02
STATEjSTANDARDS: UnitedjStatesj-jOHj-jDISC.FMAI.MADU.15.02
KEYWORDS: Bloom's:jKnowledge
DATEjCREATED: 9/16/2016j1:21jAM
DATEjMODIFIED: 5/1/2018j11:56jAM
5. Fundsjarejprovidedjtojthejinitialjissuerjofjsecuritiesjinjthe:
a. secondaryjmarket
b. primaryjmarket
c. deficitjmarket
d. surplusjmarket
ANSWER: b
POINTS: 1
DIFFICULTY: Easy
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,QUESTIONjTYPE: MultiplejChoice
HASjVARIABLES: False
LEARNINGjOBJECTIVES: FMAI.MADU.15.01.01
NATIONALjSTANDARDS: UnitedjStatesj-jBUSPROG.FMAI.MADU.15.03
STATEjSTANDARDS: UnitedjStatesj-jOHj-jDISC.FMAI.MADU.15.02
KEYWORDS: Bloom's:jKnowledge
DATEjCREATED: 9/16/2016j1:24jAM
DATEjMODIFIED: 5/1/2018j12:26jPM
6. Whichjofjthejfollowingjisjajcapitaljmarketjinstrument?
a. ajsix-monthjcertificatejofjdeposit
b. ajthree-monthjTreasuryjbill
c. ajten-yearjbond
d. anjagreementjforjajbankjtojloanjfundsjdirectlyjtojajcompanyjforjninejmonths
ANSWER: c
POINTS: 1
DIFFICULTY: Moderate
QUESTIONjTYPE: MultiplejChoice
HASjVARIABLES: False
LEARNINGjOBJECTIVES: FMAI.MADU.15.01.02
NATIONALjSTANDARDS: UnitedjStatesj-jBUSPROG.FMAI.MADU.15.03
STATEjSTANDARDS: UnitedjStatesj-jOHj-jDISC.FMAI.MADU.15.02
KEYWORDS: Bloom's:jComprehension
DATEjCREATED: 9/16/2016j1:27jAM
DATEjMODIFIED: 9/16/2016j1:29jAM
7. Whichjofjthejfollowingjisjajmoneyjmarketjsecurity?
a. Treasuryjnote
b. municipaljbond
c. mortgage
d. commercialjpaper
ANSWER: d
POINTS: 1
DIFFICULTY: Moderate
QUESTIONjTYPE: MultiplejChoice
HASjVARIABLES: False
LEARNINGjOBJECTIVES: FMAI.MADU.15.01.02
NATIONALjSTANDARDS: UnitedjStatesj-jBUSPROG.FMAI.MADU.15.03
STATEjSTANDARDS: UnitedjStatesj-jOHj-jDISC.FMAI.MADU.15.02
KEYWORDS: Bloom's:jComprehension
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, DATEjCREATED: 9/16/2016j1:29jAM
DATEjMODIFIED: 9/16/2016j1:31jAM
8. Thejcreditorsjinjthejfederaljfundsjmarketjare:
a. households
b. depositoryjinstitutions
c. firms
d. governmentjagencies
ANSWER: b
POINTS: 1
DIFFICULTY: Easy
QUESTIONjTYPE: MultiplejChoice
HASjVARIABLES: False
LEARNINGjOBJECTIVES: FMAI.MADU.15.01.03
NATIONALjSTANDARDS: UnitedjStatesj-jBUSPROG.FMAI.MADU.15.03
STATEjSTANDARDS: UnitedjStatesj-jOHj-jDISC.FMAI.MADU.15.02
KEYWORDS: Bloom's:jKnowledge
DATEjCREATED: 9/16/2016j1:52jAM
DATEjMODIFIED: 5/1/2018j12:27jPM
9. Investorsjinjequityjsecuritiesjmayjearnjajreturnjfrom
a. couponjpaymentsjandjthejreturnjofjprincipaljatjthejmaturityjdate.
b. couponjpaymentsjandjajcapitaljgainjwhenjtheyjselljthejsecurities.
c. quarterlyjdividendsj(ifjpaid)jandjajcapitaljgainjwhenjtheyjselljthejsecurities.
d. quarterlyjdividendsj(ifjpaid)jandjthejreturnjofjprincipaljatjthejmaturityjdate.
ANSWER: c
POINTS: 1
DIFFICULTY: Moderate
QUESTIONjTYPE: MultiplejChoice
HASjVARIABLES: False
LEARNINGjOBJECTIVES: FMAI.MADU.15.01.02
NATIONALjSTANDARDS: UnitedjStatesj-jBUSPROG.FMAI.MADU.15.03
STATEjSTANDARDS: UnitedjStatesj-jOHj-jDISC.FMAI.MADU.15.02
KEYWORDS: Bloom's:jComprehension
DATEjCREATED: 9/16/2016j2:56jAM
DATEjMODIFIED: 9/16/2016j2:59jAM
10. Moneyjmarketjsecuritiesjgenerallyjhavej .
a. relativelyjlowjliquidity,jlowjexpectedjreturn,jandjajhighjdegreejofjcreditjrisk
b. relativelyjhighjliquidity,jhighjexpectedjreturn,jandjajhighjdegreejofjcreditjrisk
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