Financial Institutions Test 1
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Terms in this set (87)
Financial market participants who borrow funds are a. deficit units
called
a. deficit units.
b. surplus units.
c. primary units.
d. secondary units.
Indiana Bank purchased corporate bonds with a 10-year A) Secondary
maturity 3 years ago. If it now needs funds, it could sell
those bonds in the ______ market.
a. secondary
b. primary
c. deficit
d. surplus
Which of the following is a money market security? b. six-month treasury bill
a. municipal bond
b. six-month treasury bill
c. mortgage
d. corporate bond
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,Financial Institutions test 1.pdf Financial Institutions test 1.pdf Financial Institutions test 1.pdf
Which of the following is most likely to be described as a c. Saving institutions
depository institution?
a. securities firms
b. finance companies
c. savings institutions
d. pension funds
e. insurance companies
Other things being equal, foreign governments and d. more; inversely
corporations would demand____ U.S. funds if their local
interest rates were suddenly higher than U.S. rates.For a
given foreign interest rate level, foreign demand for U.S.
funds is ____related to U.S. interest rates.
a. less; inversely
b. more; positively
c. less; positively
d. more; inversely
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, Financial Institutions test 1.pdf Financial Institutions test 1.pdf Financial Institutions test 1.pdf
Assume that foreign investors who have invested in U.S. c. increase; downward
securities decide to increase their investment in U.S.
securities. This should cause the supply of loanable funds
in the United States to ____ and should place ____ pressure
on U.S. interest rates.
a. decrease; upward
b. decrease; downward
c. increase; downward
d. increase; upward
Which of the following conditions would place the most d. an increase in the supply of loanable funds and a decrease in the demand for
downward pressure on interest rates? loanable funds
a. an increase in both the supply of and the demand for
loanable funds
b. a decrease in both the supply of and the demand for
loanable funds
c. a decrease in the supply of loanable funds and an
increase in the demand for loanable funds
d. an increase in the supply of loanable funds and a
decrease in the demand for loanable funds
Financial Institutions test 1.pdf Financial Institutions test 1.pdf Financial Institutions test 1.pdf