Test Bank for Financial Markets & Institutions, 14th Edition by Jeff Madura.pdf

Test bank for Financial Markets and Institutions 12th Editio
k k k k k k k k



n by Jeff Madura k k k




1. Financialk marketk participantsk who k provide k fundsk arek called
a. deficitk units.
b. surplusk units.
c. primary k units.
d. secondary k units.
ANSWER: b
POINTS: 1
DIFFICULTY: Easy
QUESTIONkTYPE: Multiplek Choice
HAS kVARIABLES: False
LEARNINGkOBJECTIVES: FMAI.MADU.15.01.01
NATIONALkSTANDARDS: United k Statesk-kBUSPROG.FMAI.MADU.15.03
STATEkSTANDARDS: United k Statesk-kOHk -kDISC.FMAI.MADU.15.02
KEYWORDS: Bloom's:k Knowledge
DATEkCREATED: 9/15/2016 k 6:38 k AM
DATEkMODIFIED: 9/16/2016 k 1:14 k AM


2. Which k of k thek followingk isk NOTk an k issuerk of k bonds?
a. households
b. corporations
c. thek U.S.k Treasury
d. governmentkagencies
ANSWER: a
POINTS: 1
DIFFICULTY: Easy
QUESTIONkTYPE: Multiplek Choice
HAS kVARIABLES: False
LEARNINGkOBJECTIVES: FMAI.MADU.15.01.01
NATIONALkSTANDARDS: United k Statesk-kBUSPROG.FMAI.MADU.15.03
STATEkSTANDARDS: United k Statesk-kOHk -kDISC.FMAI.MADU.15.02
KEYWORDS: Bloom's:k Knowledge
DATEkCREATED: 9/16/2016 k 1:15 k AM
DATEkMODIFIED: 5/1/2018 k 11:55 k AM


3. Behavioralkfinance
a. appliesk conceptsk fromk sociology k and k anthropology k to k thek behaviork of k marketk participants.
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, b. studiesk thekbehaviorkofkfinancialkmarketskinkresponse ktokchangesk inkFederalk Reserve k policy.
c. appliesk psychology k to k financialk decision k making.
d. explainsk why k marketsk arek efficient.
ANSWER: c
POINTS: 1
DIFFICULTY: Easy
QUESTIONkTYPE: Multiplek Choice
HAS kVARIABLES: False
LEARNINGkOBJECTIVES: FMAI.MADU.15.01.01
NATIONALkSTANDARDS: United k Statesk -k BUSPROG.FMAI.MADU.15.03
STATEkSTANDARDS: United k Statesk -k OHk -k DISC.FMAI.MADU.15.02
KEYWORDS: Bloom's:k Knowledge
DATEkCREATED: 9/16/2016 k 1:18 k AM
DATEkMODIFIED: 9/16/2016 k 1:21 k AM


4. Those k financialk marketsk thatk facilitatek thek flowk of k short-termk fundsk arek known k as:
a. money k markets
b. capitalk markets
c. primary k markets
d. secondary k markets
ANSWER: a
POINTS: 1
DIFFICULTY: Easy
QUESTIONkTYPE: Multiplek Choice
HAS kVARIABLES: False
LEARNINGkOBJECTIVES: FMAI.MADU.15.01.02
NATIONALkSTANDARDS: United k Statesk-kBUSPROG.FMAI.MADU.15.02
STATEkSTANDARDS: United k Statesk-kOHk -kDISC.FMAI.MADU.15.02
KEYWORDS: Bloom's:k Knowledge
DATEkCREATED: 9/16/2016 k 1:21 k AM
DATEkMODIFIED: 5/1/2018 k 11:56 k AM


5. Fundsk arek provided k to k thek initialk issuerk of k securitiesk in k the:
a. secondary k market
b. primary k market
c. deficitk market
d. surplusk market
ANSWER: b
POINTS: 1
DIFFICULTY: Easy

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,QUESTIONkTYPE: Multiplek Choice
HAS kVARIABLES: False
LEARNINGkOBJECTIVES: FMAI.MADU.15.01.01
NATIONALkSTANDARDS: United k Statesk-kBUSPROG.FMAI.MADU.15.03
STATEkSTANDARDS: United k Statesk-kOHk -kDISC.FMAI.MADU.15.02
KEYWORDS: Bloom's:k Knowledge
DATEkCREATED: 9/16/2016 k 1:24 k AM
DATEkMODIFIED: 5/1/2018 k 12:26 k PM


6. Which k of k thek followingk isk ak capitalk marketk instrument?
a. ak six-month k certificatek of k deposit
b. ak three-month k Treasury k bill
c. ak ten-yeark bond
d. an k agreementkforkak bankkto kloankfundskdirectly ktokakcompanykfork ninek months
ANSWER: c
POINTS: 1
DIFFICULTY: Moderate
QUESTIONkTYPE: Multiplek Choice
HAS kVARIABLES: False
LEARNINGkOBJECTIVES: FMAI.MADU.15.01.02
NATIONALkSTANDARDS: United k Statesk -k BUSPROG.FMAI.MADU.15.03
STATEkSTANDARDS: United k Statesk -k OHk -k DISC.FMAI.MADU.15.02
KEYWORDS: Bloom's:k Comprehension
DATEkCREATED: 9/16/2016 k 1:27 k AM
DATEkMODIFIED: 9/16/2016 k 1:29 k AM


7. Which k of k thek followingk isk ak money k marketk security?
a. Treasury k note
b. municipalk bond
c. mortgage
d. commercialk paper
ANSWER: d
POINTS: 1
DIFFICULTY: Moderate
QUESTIONkTYPE: Multiplek Choice
HAS kVARIABLES: False
LEARNINGkOBJECTIVES: FMAI.MADU.15.01.02
NATIONALkSTANDARDS: United k Statesk-kBUSPROG.FMAI.MADU.15.03
STATEkSTANDARDS: United k Statesk-kOHk -kDISC.FMAI.MADU.15.02
KEYWORDS: Bloom's:k Comprehension

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, DATEkCREATED: 9/16/2016 k 1:29 k AM
DATEkMODIFIED: 9/16/2016 k 1:31 k AM


8. Thek creditorsk in k thek federalk fundsk marketk are:
a. households
b. depository k institutions
c. firms
d. governmentkagencies
ANSWER: b
POINTS: 1
DIFFICULTY: Easy
QUESTIONkTYPE: Multiplek Choice
HAS kVARIABLES: False
LEARNINGkOBJECTIVES: FMAI.MADU.15.01.03
NATIONALkSTANDARDS: United k Statesk-kBUSPROG.FMAI.MADU.15.03
STATEkSTANDARDS: United k Statesk-kOHk -kDISC.FMAI.MADU.15.02
KEYWORDS: Bloom's:k Knowledge
DATEkCREATED: 9/16/2016 k 1:52 k AM
DATEkMODIFIED: 5/1/2018 k 12:27 k PM


9. Investorsk in k equity k securitiesk may k earn k ak return k from
a. coupon k paymentsk and k thek return k of k principalk atk thek maturity k date.
b. coupon k paymentsk and k ak capitalk gain k when k they k sellk thek securities.
c. quarterly kdividendsk(ifkpaid)kand kakcapitalk gainkwhenktheyk sellk thek securities.
d. quarterly kdividendsk(ifkpaid)kand kthekreturn kofkprincipalk atk thek maturity k date.
ANSWER: c
POINTS: 1
DIFFICULTY: Moderate
QUESTIONkTYPE: Multiplek Choice
HAS kVARIABLES: False
LEARNINGkOBJECTIVES: FMAI.MADU.15.01.02
NATIONALkSTANDARDS: United k Statesk -k BUSPROG.FMAI.MADU.15.03
STATEkSTANDARDS: United k Statesk -k OHk -k DISC.FMAI.MADU.15.02
KEYWORDS: Bloom's:k Comprehension
DATEkCREATED: 9/16/2016 k 2:56 k AM
DATEkMODIFIED: 9/16/2016 k 2:59 k AM


10. Money k marketk securitiesk generally k havek .
a. relatively klowkliquidity,klowkexpectedkreturn,kand k ak high k degreek of k creditk risk
b. relatively khighkliquidity,khigh kexpectedkreturn,kandkakhigh kdegreek of k creditk risk
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