DOWNLOAD THE Test Bank for Financial Markets Institutions and Money4th Ed
z z z z z z z z z z z
ition Kidwell z
Testbank
to accompany
z
Financial markets, insti z z
tutions and money z z
4th edition z
by Kidwel
z
l et al.
z z
© John Wiley & Sons Australia, Ltd 2019
z z z z z z z
mynursytest.store
,DOWNLOAD THE Test Bank for Financial Markets Institutions and Money4th Ed
z z z z z z z z z z z
ition Kidwell z
Chapterz2:zFinancialzmarkets
Chapter 2: Financial markets
z z z
Multiple-choicezquestions
1. InvestorszpurchasezTreasuryzNotes:
a. inzmultipleszofz$10,000.
b. atzparzvalue.
*c.z onzazdiscountzbasis.
d. bothzAzandzC.
Feedback:zTreasuryzNoteszarezsoldztozinvestorszonzazdiscountzbasiszandzpayznozcouponzinte
rest.zThus,zthezinterestzincomeztozthezinvestorsziszthezdifferencezbetweenzthezpurchasezpricez
andzfacezvaluezofztheznotezatzmaturity.
Answer:zc
Learningzobjectivez2.1:zexplainzthezcharacteristicszofzmoneyzmarketzinstruments.
2. Whenz az commercialz bankz issuesz az paymentz guaranteez onz behalfz ofz anz importer,z thatzg
uaranteezisza:
a. documentedztransfer.
*b.z letterzofzcredit.
c. timezdraft.
d. sightzdraft.
Feedback:zAzletterzofzcreditziszazfinancialzinstrumentzissuedzbyzinzimporter’szbankzthatzo
bligateszthezbankztozpayzthezexporterzazspecifiedzamountzofzmoney.
Answer:zb
Learningzobjectivez2.1:zexplainzthezcharacteristicszofzmoneyzmarketzinstruments.
3. Whichzofzthezfollowingzstatementsziszcorrect?
a. Moneyzmarketztransactionszarezseldomzoverz$1zmillion.
b. Mostzmoneyzmarketztransactionszinvolvezretailzinvestors.
*c.z Thezmoneyzmarketziszazdealerzmarketzlinkedzbyzefficientzcommunicationszsystems.
d.
Marketz transactionsz inz moneyzmarketz securitieszincludezmorezprimaryzmarketz tradesz tha
nzsecondaryzmarketztrades.
Answer:zc
Learningzobjectivez2.1:zexplainzthezcharacteristicszofzmoneyzmarketzinstruments.
©zJohnzWileyz&zSonszAustralia,zLtdz2019 2.2
mynursytest.store
,DOWNLOAD THE Test Bank for Financial Markets Institutions and Money4th Ed
z z z z z z z z z z z
ition Kidwell z
Testbankztozaccompany:zFinancialzMarkets,zInstitutionszandzMoneyz4ezbyzKidwellzetzal.
4. Lowz creditz ratedz commercialz companiesz typicallyz raisez fundsz usingz whichz moneyz marketzin
strument?
a. Treasuryznotes.
*b.z Bank-acceptedzbills.
c. Commercialzpaper.
d. NegotiablezCDs.
Answer:zb
Learningzobjectivez2.1:zexplainzthezcharacteristicszofzmoneyzmarketzinstruments.
5. Moneyzmarketzsecuritieszare:
a. riskzfreezassets.
b. long-termzsecurities.
c. notztradedzbeforezmaturityzdate.
*d.z anzalternativeztozbankzborrowingzforzcorporations’zfunding.
Answer:zd
Learningzobjectivez2.1:zexplainzthezcharacteristicszofzmoneyzmarketzinstruments.
6. Inzazbank-acceptedzbill,zthezbankzis:
a. thezlenderzofzfunds.
b. thezissuerzofzthezbill.
*c.z thezpayerzofzthezfacezvalueztozthezinvestorzifzthezissuerzdefaults.
d. thezborrowerzofzfunds.
Feedback:z Thez issuer/borrowerz isz thez commercialz companyz notz thez bank.z Thez lendersz arez thezinv
estorszinzthezbillznotzthezbank.
Answer:zc
Learningzobjectivez2.1:zexplainzthezcharacteristicszofzmoneyzmarketzinstruments.
©zJohnzWileyz&zSonszAustralia,zLtdz2019 2.3
mynursytest.store
, DOWNLOAD THE Test Bank for Financial Markets Institutions and Money4th Ed
z z z z z z z z z z z
ition Kidwell z
Chapterz2:zFinancialzmarkets
7. z
z isz (are)z thez largestz classz ofz participantsz inz thez Australianz moneyzmarkets.
*a.z Commercialzbanks.
b. Non-financialzcorporations.
c. ThezCommonwealthzgovernment.
d. ThezReservezBankzofzAustralia.
Answer:za
Learningzobjectivez2.1:zexplainzthezcharacteristicszofzmoneyzmarketzinstruments.
8. Thezcashzrateziszanzinterestzratezprevailingzonzthe:
a. repozmarket.
b. Treasuryznoteszmarket.
c. bank-acceptedzbillszmarket.
*d.z unsecuredzinterbankzmarket.
Answer:zd
Learningzobjectivez2.1:zexplainzthezcharacteristicszofzmoneyzmarketzinstruments.
9. Whichzofzthezfollowingzsecuritieszisznotzazone-namezpaper?
a. Treasuryznotes.
b. Commercialzpaper.
*c.z Bank-acceptedzbills.
d. Certificateszofzdeposit.
Feedback:z Bankz acceptedz billsz implyz thatz thez bankz willz payz ifz thez drawerz ofz thez billz cannotzpay
.zThezissuerzandzthezbankzhavezazjointzliability.
Answer:zc
Learningzobjectivez2.1:zexplainzthezcharacteristicszofzmoneyzmarketzinstruments.
©zJohnzWileyz&zSonszAustralia,zLtdz2019 2.4
mynursytest.store
z z z z z z z z z z z
ition Kidwell z
Testbank
to accompany
z
Financial markets, insti z z
tutions and money z z
4th edition z
by Kidwel
z
l et al.
z z
© John Wiley & Sons Australia, Ltd 2019
z z z z z z z
mynursytest.store
,DOWNLOAD THE Test Bank for Financial Markets Institutions and Money4th Ed
z z z z z z z z z z z
ition Kidwell z
Chapterz2:zFinancialzmarkets
Chapter 2: Financial markets
z z z
Multiple-choicezquestions
1. InvestorszpurchasezTreasuryzNotes:
a. inzmultipleszofz$10,000.
b. atzparzvalue.
*c.z onzazdiscountzbasis.
d. bothzAzandzC.
Feedback:zTreasuryzNoteszarezsoldztozinvestorszonzazdiscountzbasiszandzpayznozcouponzinte
rest.zThus,zthezinterestzincomeztozthezinvestorsziszthezdifferencezbetweenzthezpurchasezpricez
andzfacezvaluezofztheznotezatzmaturity.
Answer:zc
Learningzobjectivez2.1:zexplainzthezcharacteristicszofzmoneyzmarketzinstruments.
2. Whenz az commercialz bankz issuesz az paymentz guaranteez onz behalfz ofz anz importer,z thatzg
uaranteezisza:
a. documentedztransfer.
*b.z letterzofzcredit.
c. timezdraft.
d. sightzdraft.
Feedback:zAzletterzofzcreditziszazfinancialzinstrumentzissuedzbyzinzimporter’szbankzthatzo
bligateszthezbankztozpayzthezexporterzazspecifiedzamountzofzmoney.
Answer:zb
Learningzobjectivez2.1:zexplainzthezcharacteristicszofzmoneyzmarketzinstruments.
3. Whichzofzthezfollowingzstatementsziszcorrect?
a. Moneyzmarketztransactionszarezseldomzoverz$1zmillion.
b. Mostzmoneyzmarketztransactionszinvolvezretailzinvestors.
*c.z Thezmoneyzmarketziszazdealerzmarketzlinkedzbyzefficientzcommunicationszsystems.
d.
Marketz transactionsz inz moneyzmarketz securitieszincludezmorezprimaryzmarketz tradesz tha
nzsecondaryzmarketztrades.
Answer:zc
Learningzobjectivez2.1:zexplainzthezcharacteristicszofzmoneyzmarketzinstruments.
©zJohnzWileyz&zSonszAustralia,zLtdz2019 2.2
mynursytest.store
,DOWNLOAD THE Test Bank for Financial Markets Institutions and Money4th Ed
z z z z z z z z z z z
ition Kidwell z
Testbankztozaccompany:zFinancialzMarkets,zInstitutionszandzMoneyz4ezbyzKidwellzetzal.
4. Lowz creditz ratedz commercialz companiesz typicallyz raisez fundsz usingz whichz moneyz marketzin
strument?
a. Treasuryznotes.
*b.z Bank-acceptedzbills.
c. Commercialzpaper.
d. NegotiablezCDs.
Answer:zb
Learningzobjectivez2.1:zexplainzthezcharacteristicszofzmoneyzmarketzinstruments.
5. Moneyzmarketzsecuritieszare:
a. riskzfreezassets.
b. long-termzsecurities.
c. notztradedzbeforezmaturityzdate.
*d.z anzalternativeztozbankzborrowingzforzcorporations’zfunding.
Answer:zd
Learningzobjectivez2.1:zexplainzthezcharacteristicszofzmoneyzmarketzinstruments.
6. Inzazbank-acceptedzbill,zthezbankzis:
a. thezlenderzofzfunds.
b. thezissuerzofzthezbill.
*c.z thezpayerzofzthezfacezvalueztozthezinvestorzifzthezissuerzdefaults.
d. thezborrowerzofzfunds.
Feedback:z Thez issuer/borrowerz isz thez commercialz companyz notz thez bank.z Thez lendersz arez thezinv
estorszinzthezbillznotzthezbank.
Answer:zc
Learningzobjectivez2.1:zexplainzthezcharacteristicszofzmoneyzmarketzinstruments.
©zJohnzWileyz&zSonszAustralia,zLtdz2019 2.3
mynursytest.store
, DOWNLOAD THE Test Bank for Financial Markets Institutions and Money4th Ed
z z z z z z z z z z z
ition Kidwell z
Chapterz2:zFinancialzmarkets
7. z
z isz (are)z thez largestz classz ofz participantsz inz thez Australianz moneyzmarkets.
*a.z Commercialzbanks.
b. Non-financialzcorporations.
c. ThezCommonwealthzgovernment.
d. ThezReservezBankzofzAustralia.
Answer:za
Learningzobjectivez2.1:zexplainzthezcharacteristicszofzmoneyzmarketzinstruments.
8. Thezcashzrateziszanzinterestzratezprevailingzonzthe:
a. repozmarket.
b. Treasuryznoteszmarket.
c. bank-acceptedzbillszmarket.
*d.z unsecuredzinterbankzmarket.
Answer:zd
Learningzobjectivez2.1:zexplainzthezcharacteristicszofzmoneyzmarketzinstruments.
9. Whichzofzthezfollowingzsecuritieszisznotzazone-namezpaper?
a. Treasuryznotes.
b. Commercialzpaper.
*c.z Bank-acceptedzbills.
d. Certificateszofzdeposit.
Feedback:z Bankz acceptedz billsz implyz thatz thez bankz willz payz ifz thez drawerz ofz thez billz cannotzpay
.zThezissuerzandzthezbankzhavezazjointzliability.
Answer:zc
Learningzobjectivez2.1:zexplainzthezcharacteristicszofzmoneyzmarketzinstruments.
©zJohnzWileyz&zSonszAustralia,zLtdz2019 2.4
mynursytest.store
