6/30/23,n4:10nAM TestnBanknandnSolutionsnFornFinancialnInstitutionsnManagement:nAnRisknMan
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FornFullnChaptersn :n
m
Chaptern01nTestbankn
Student:n
1. Thenexchangenofn goodsn andn servicesnisnmadenmorenefn fn in cientnby:n
A. bartersn
.n
B. money.n n
n C.ngovernment
s.n
D.nsomencombinationnofn governmentntransfernandnbarter.n
2. Thentermn ‘mediumnofn exchange'n forn moneyn refersn tonitsn usenas:n
A. coinage.n
B.ncurrency.n
C.nsomethingnthatnisnwidelynacceptednasnpaymentnforngoodsnandnservice
s.n D.nanynstandardnofnvaluenthatnpricesncannbenexpressednin.n
3. Thenrolenofn moneynasnanstorenofn valuenrefersnto:n
A. then valuen ofn moneyn fallingn onlyn whenn then moneyn supplyn fall
s.n B.nthenvaluenofn moneyn fallingnonlyn whennthen moneynsupplynincre
ases.n C.nthenfactnthatn moneynallowsnworthntonbenstorednreadily.n
D.nthenfactnthatnmoneyn nevernlosesnitsnvaluencomparedn withnothernassets.n
4. Moneynincreasesneconomicngrowthnbynassistingntransfersnfrom:n
A. consumersntoninvestors.
n B.nsaversntonborrowers.n
C.nbusinessesntonconsumers.
n D.nborrowersntoninvestors.
n
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5. Financialn marketsnhavendevelopedntonfacilitatenthenexchangenofn moneynbetweennsaversnandnborrowers.nWhi
chn ofnthen followingn isnNOTnanfunctionnofnmoney?n
A. An n n n n n storen n n n n n ofn n n n n n n v
aluen B.nAnmediumnofnexchangenfornsettlingneconomicntrans
actionsn C.nAnclaimntonfuturencashnfn lnowsn
D.nShort-termn protectionn againstninfn ln ationn
6. Buyersnofn fn in nancialnclaimsnlendn theirnexcessnfundsn becausenthey:n
A. expectn ton borrownextranfundsninn thenfuture.n
B. wantnsurplusnfundsninnthe
n future.n
C. wantn n n ton n n investn n n inn n n then n n futur
e.n D.nwantntonincreasentheirncostsnrelativentontheirninco
mes.n
7. Sellersnofn fn in nancialnclaimsnpromisentonpayn backnborrowednfunds:n
A. byn n n borrowingn n extran n fundsn n n inn n then n futur
e.n B.nbasednonntheirnexpectationnofn havingnsurplusnfundsninnthenfu
ture.n C.nbynsellingnothernassets.n
D.nbynreducingntheirncostsnrelativentontheirnincomes.n
8. Ansavings-surplusnunitnisnannentity:n
A. thatnneedsntonborrownfundsnfromnansurplusnunit.
n B.nwhichnhasnannincomenthatnexceedsnitsnspendin
g.n C.nwhosenspendingnexceedsnitsnincome.n
D.ncalledn ancompany.n
9. Thenprocessnofnfacilitatingnthenfn lnownofnfundsnbetweennborrowersnandnlendersnperformednbynthenfn innanci
aln system:n
A. isnhinderednbynthenproblemnofn‘doublencoincidencenofnwants'.
n B.ngreatlynreducesnthenprobabilitynofninfn lnation.n
C.nincreasesnthenratenofneconomicngrowthnofnancountry.
n D.noccursnonlynthroughnfn innancialnintermediaries.n
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10. Bothnrealnandnfn innancialnassetsnhavenfournprincipalnattributesnthatnarensignifn incantnfactorsninntheninvestme
ntn decisionnprocess.nThesenare:n
I.n n n liquidityn
II.ncapitaln gainn I
II.n n n n riskn I
V.nreturnnornyield
n
V.ntimenpatternnofn futurencashnfn lnows
n VI.npricenandncashnfn lnownvolatilityn
A. I,nII,nIII,
n IVn
B. I,nIII,nIV,nVn
C. I,nIII,nIV,nVIn
D. I,nIII,nIV,nVn
11. Whichnofn thenfollowingn isnNOTnassociatedn withncharacteristicsnofn shares?n
A.nPartnownershipnofnancompan
yn B.n n n n Capitaln n n n ga
insn C.n Anfn in xedn interestn pa
ymentn D.nDividendsn
12. Anfn in nancialninstitutionn thatnobtainsn mostn ofn itsnfundsnfromndepositsnisna/an:n
A. investmentnbank.n
B. unitn
trust.n
C. commercialnbank.n
D.ngeneralninsurer.n
13. Institutionsn thatnspecialiseninnofn fn -balance-sheetn advisoryn servicesnarencalled:n
A. depositoryn fn in nancialninstitutions.n
B. contractualn i
nstitutions.n
C. fn in nancencompanies.n
D. investmentnbanks.n
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14. Anfn innancialnintermediarynthatnreceivesnpremiumnpaymentsnwhichnarenusedntonpurchasenassetsntoncovernfutu
ren possiblenpaymentsnisna:n
A. buildingnsociety.n
B.ncreditnunion.n
C.n n n savingsn n n bank.
n D.nlifeninsurancenofn fn in
ce.n
15. Financialninstitutionsnwhosenliabilitiesnspecifynthat,ninnreturnnfornthenpaymentnofnperiodicnfundsntonthen i
nstitution,ntheninstitutionnwilln makenpaymentsninnthenfuturen(ifnandnwhennanspecifn inedneventnoccurs)nare
:n
A. moneynmarketncorporations.n
B. unitn
trusts.n
C. contractualn savingsn institutions.n
D.ndepositorynfn innancialninstitutions.n
16. Financialninstitutionsn thatnraisenthenmajorityn ofn theirnfundsnbyn sellingnsecuritiesn innthenmoneyn marketsnare:n
A.n n commercialn n banks.
n B.n n buildingn n societie
s.n C.n fn n in nancen compan
ies.n D.nlifeninsurancenofn f
n in ces.n
17. Financialninstitutionsnthatnarenformednundernantrustndeednandnattractnfundsnbyninvitingnthenpublicntonbuynun
itsn are:n
A. fn innancencompaniesn
B.nbuildingnsocieties.n
C. unitn
trusts.n
D. lifeninsurancenofn fn in ces.n
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m
Chaptern01nTestbankn
Student:n
1. Thenexchangenofn goodsn andn servicesnisnmadenmorenefn fn in cientnby:n
A. bartersn
.n
B. money.n n
n C.ngovernment
s.n
D.nsomencombinationnofn governmentntransfernandnbarter.n
2. Thentermn ‘mediumnofn exchange'n forn moneyn refersn tonitsn usenas:n
A. coinage.n
B.ncurrency.n
C.nsomethingnthatnisnwidelynacceptednasnpaymentnforngoodsnandnservice
s.n D.nanynstandardnofnvaluenthatnpricesncannbenexpressednin.n
3. Thenrolenofn moneynasnanstorenofn valuenrefersnto:n
A. then valuen ofn moneyn fallingn onlyn whenn then moneyn supplyn fall
s.n B.nthenvaluenofn moneyn fallingnonlyn whennthen moneynsupplynincre
ases.n C.nthenfactnthatn moneynallowsnworthntonbenstorednreadily.n
D.nthenfactnthatnmoneyn nevernlosesnitsnvaluencomparedn withnothernassets.n
4. Moneynincreasesneconomicngrowthnbynassistingntransfersnfrom:n
A. consumersntoninvestors.
n B.nsaversntonborrowers.n
C.nbusinessesntonconsumers.
n D.nborrowersntoninvestors.
n
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FornFullnChaptersn :n
5. Financialn marketsnhavendevelopedntonfacilitatenthenexchangenofn moneynbetweennsaversnandnborrowers.nWhi
chn ofnthen followingn isnNOTnanfunctionnofnmoney?n
A. An n n n n n storen n n n n n ofn n n n n n n v
aluen B.nAnmediumnofnexchangenfornsettlingneconomicntrans
actionsn C.nAnclaimntonfuturencashnfn lnowsn
D.nShort-termn protectionn againstninfn ln ationn
6. Buyersnofn fn in nancialnclaimsnlendn theirnexcessnfundsn becausenthey:n
A. expectn ton borrownextranfundsninn thenfuture.n
B. wantnsurplusnfundsninnthe
n future.n
C. wantn n n ton n n investn n n inn n n then n n futur
e.n D.nwantntonincreasentheirncostsnrelativentontheirninco
mes.n
7. Sellersnofn fn in nancialnclaimsnpromisentonpayn backnborrowednfunds:n
A. byn n n borrowingn n extran n fundsn n n inn n then n futur
e.n B.nbasednonntheirnexpectationnofn havingnsurplusnfundsninnthenfu
ture.n C.nbynsellingnothernassets.n
D.nbynreducingntheirncostsnrelativentontheirnincomes.n
8. Ansavings-surplusnunitnisnannentity:n
A. thatnneedsntonborrownfundsnfromnansurplusnunit.
n B.nwhichnhasnannincomenthatnexceedsnitsnspendin
g.n C.nwhosenspendingnexceedsnitsnincome.n
D.ncalledn ancompany.n
9. Thenprocessnofnfacilitatingnthenfn lnownofnfundsnbetweennborrowersnandnlendersnperformednbynthenfn innanci
aln system:n
A. isnhinderednbynthenproblemnofn‘doublencoincidencenofnwants'.
n B.ngreatlynreducesnthenprobabilitynofninfn lnation.n
C.nincreasesnthenratenofneconomicngrowthnofnancountry.
n D.noccursnonlynthroughnfn innancialnintermediaries.n
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10. Bothnrealnandnfn innancialnassetsnhavenfournprincipalnattributesnthatnarensignifn incantnfactorsninntheninvestme
ntn decisionnprocess.nThesenare:n
I.n n n liquidityn
II.ncapitaln gainn I
II.n n n n riskn I
V.nreturnnornyield
n
V.ntimenpatternnofn futurencashnfn lnows
n VI.npricenandncashnfn lnownvolatilityn
A. I,nII,nIII,
n IVn
B. I,nIII,nIV,nVn
C. I,nIII,nIV,nVIn
D. I,nIII,nIV,nVn
11. Whichnofn thenfollowingn isnNOTnassociatedn withncharacteristicsnofn shares?n
A.nPartnownershipnofnancompan
yn B.n n n n Capitaln n n n ga
insn C.n Anfn in xedn interestn pa
ymentn D.nDividendsn
12. Anfn in nancialninstitutionn thatnobtainsn mostn ofn itsnfundsnfromndepositsnisna/an:n
A. investmentnbank.n
B. unitn
trust.n
C. commercialnbank.n
D.ngeneralninsurer.n
13. Institutionsn thatnspecialiseninnofn fn -balance-sheetn advisoryn servicesnarencalled:n
A. depositoryn fn in nancialninstitutions.n
B. contractualn i
nstitutions.n
C. fn in nancencompanies.n
D. investmentnbanks.n
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14. Anfn innancialnintermediarynthatnreceivesnpremiumnpaymentsnwhichnarenusedntonpurchasenassetsntoncovernfutu
ren possiblenpaymentsnisna:n
A. buildingnsociety.n
B.ncreditnunion.n
C.n n n savingsn n n bank.
n D.nlifeninsurancenofn fn in
ce.n
15. Financialninstitutionsnwhosenliabilitiesnspecifynthat,ninnreturnnfornthenpaymentnofnperiodicnfundsntonthen i
nstitution,ntheninstitutionnwilln makenpaymentsninnthenfuturen(ifnandnwhennanspecifn inedneventnoccurs)nare
:n
A. moneynmarketncorporations.n
B. unitn
trusts.n
C. contractualn savingsn institutions.n
D.ndepositorynfn innancialninstitutions.n
16. Financialninstitutionsn thatnraisenthenmajorityn ofn theirnfundsnbyn sellingnsecuritiesn innthenmoneyn marketsnare:n
A.n n commercialn n banks.
n B.n n buildingn n societie
s.n C.n fn n in nancen compan
ies.n D.nlifeninsurancenofn f
n in ces.n
17. Financialninstitutionsnthatnarenformednundernantrustndeednandnattractnfundsnbyninvitingnthenpublicntonbuynun
itsn are:n
A. fn innancencompaniesn
B.nbuildingnsocieties.n
C. unitn
trusts.n
D. lifeninsurancenofn fn in ces.n
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