FIN 350 EXAM | QUESTIONS & ANSWERS (VERIFIED) | LATEST UPDATE | GRADED A+

A surplus spending unit's A) income and expenditures for the period are equal. B) income for the period exceeds expenditures. C) expenditures for the period exceed receipts. D) spending is entirely financed by credit cards ANSWER: B) income for the period exceeds expenditures. Which sector has been most consistently in a surplus budget position? A) Business B) Government C) Foreign D) Household ANSWER: D) Household Money market mutual funds are a strong competitor for Deeagles - Stuvia US A) depository institutions. B) contractual savings institutions. C) finance companies. D) the real estate market. ANSWER: A) depository institutions. The ease with which a financial claim can be resold is its A) quality. B) risk. C) marketability. D) perpetuity. ANSWER: C) marketability. Intermediation, or____________ financing, involves ___________financial claim(s) linking surplus spending unit (SSU) and deficit spending unit (DSU) . A) indirect; two B) direct; two C) indirect; one D) direct; one Deeagles - Stuvia US ANSWER: A) indirect; two ____________ merely execute buy or sell orders for their clients; _________ "make markets". A) dealers; brokers B) brokers; investment bankers C) dealers; financial institutions D) brokers; dealers ANSWER: D) brokers; dealer