CreatednBy:nTestnBank
Test Bank for Financial Markets and Institutions 6t
n n n n n n n
h Edition Anthony Saunders, All chapters Complet
n n n n n n
e Guide A+ 2024 n n n
Chaptern01nIntroductionnAnswernKeynTru
en/nFalsenQuestions
1. Primaryn marketsn aren marketsn wheren usersn of n fundsnraisen cashn bynsellingn securitiesn ton f
unds’n suppliers.
TRUE
2. Secondaryn marketsn aren marketsn used nbyncorporationsn tonraisen cashn bynissuingn securitiesn f
orn an short n timen period.
FALSE
3. Inn an privaten placement,n thenissuern typicallyn sellsn then entiren issuen tonone,n ornonlyn an few,n i
nstitutionaln buyers.
TRUE
4. Then NYSEn isn annexamplen of nan secondarynmarket.n
TRUE
5. Privatelynplaced n securitiesn aren usuallynsold n ton onen orn moren investment nbankersn andnthenn r
esold n ton then generaln public.
FALSE
6. Moneyn marketsn aren then marketsn forn securitiesn withn ann originaln maturityn of n 1n yearn orn less.
A+ Pagen1
,CreatednBy:nTestnBank
TRUE
7. Financialn intermediariesn suchn asn banksn typicallynhaven assetsn that n aren riskiern thann theirn l
iabilities.
TRUE
8. Theren aren threen typesn of n majorn financialn marketsn today:n primary,n secondary,n andn de
rivativesn markets.n Then NYSEn and n NASDAQ n aren bothn examplesn of n derivativesn markets.
FALSE
Multiplen Choicen Questions
9. What n factorsn aren encouragingn financialn institutionsn ton offern overlappingn financialn servicesn s
uchn asn banking,n investment n banking,n brokerage,n etc.?
I. Regulatoryn changesn allowingn institutionsn ton offern moren services
II. Technologicaln improvementsn reducingn then cost n of n providingn financialn services
III. Increasingn competitionn fromn fulln servicen globaln financialn institutions
IV. Reductionn inn then need n ton managen riskn at n financialn institutions
A. I n only
B. II n and n III n only
A+ Pagen2
,CreatednBy:nTestnBank
C. I,n II,n and n III n only
D. I,n II,n and n IVn only
E. I,n II,n III,n and n IVn Figuren 1-1
IBMn createsn and nsellsn additionaln stockntontheninvestment n banker,nMorgann Stanley.nMorgann Stanleyn
thenn resellsn then issuen ton then U.S.n public.
10. Thisn transactionn isn ann examplen of n a(n)
A. primaryn market n transaction
B. asset n transformationn byn Morgann Stanley
C. moneyn market n transaction
D. foreignn exchangen transaction
E. forward n transaction
11. Morgann Stanleyn isn actingn asn a(n)n A.asset n transformer
B. asset n broker
C. government n regulator
D. foreignn servicen representative
12. A n corporationn seekingnton selln newn equityn securitiesn tonthen publicnfornthenfirst ntimen inn ordernt
on raisen cashn forn capitaln investmentn wouldn mostn likelynA.conductn annIPOn withn then assistancen ofn ann in
vestment n banker
B. engagen inn an secondaryn market n salen of n equity
C. conduct n an privaten placement n ton an largen numbern of n potentialn buyers
D. placen ann ad n inn then Walln Street n Journaln solicitingn retailn suppliersn of n funds
E. nonen of n then above
A+ Pagen3
, CreatednBy:nTestnBank
13. Then largest n capitaln market n securityn outstandingn inn 2010n measured n byn market n valuen was
A. securitized n mortgages
B. corporaten bonds
C. municipaln bonds
D. Treasuryn bonds
E. corporaten stocks
14. Then diagramn below n isn an diagramn of n then A.secondaryn markets
B. primaryn markets
C. moneyn markets
D. derivativesn markets
E. commoditiesn markets
15. and
allow n an financialn intermediarynton offern safe,nliquid nliabilitiesn suchn asn deposits
n whilen investingn then depositors’n moneyn inn riskier,n illiquid n assets.
A. Diversification;n highn equityn returns
B. Pricen risk;n collateral
C. Freen riders;n regulations
D. Monitoring;n diversification
E. Primarynmarkets;n foreignn exchangen markets
16. Depositoryninstitutionsn include:n A.banks
A+ Pagen4
Test Bank for Financial Markets and Institutions 6t
n n n n n n n
h Edition Anthony Saunders, All chapters Complet
n n n n n n
e Guide A+ 2024 n n n
Chaptern01nIntroductionnAnswernKeynTru
en/nFalsenQuestions
1. Primaryn marketsn aren marketsn wheren usersn of n fundsnraisen cashn bynsellingn securitiesn ton f
unds’n suppliers.
TRUE
2. Secondaryn marketsn aren marketsn used nbyncorporationsn tonraisen cashn bynissuingn securitiesn f
orn an short n timen period.
FALSE
3. Inn an privaten placement,n thenissuern typicallyn sellsn then entiren issuen tonone,n ornonlyn an few,n i
nstitutionaln buyers.
TRUE
4. Then NYSEn isn annexamplen of nan secondarynmarket.n
TRUE
5. Privatelynplaced n securitiesn aren usuallynsold n ton onen orn moren investment nbankersn andnthenn r
esold n ton then generaln public.
FALSE
6. Moneyn marketsn aren then marketsn forn securitiesn withn ann originaln maturityn of n 1n yearn orn less.
A+ Pagen1
,CreatednBy:nTestnBank
TRUE
7. Financialn intermediariesn suchn asn banksn typicallynhaven assetsn that n aren riskiern thann theirn l
iabilities.
TRUE
8. Theren aren threen typesn of n majorn financialn marketsn today:n primary,n secondary,n andn de
rivativesn markets.n Then NYSEn and n NASDAQ n aren bothn examplesn of n derivativesn markets.
FALSE
Multiplen Choicen Questions
9. What n factorsn aren encouragingn financialn institutionsn ton offern overlappingn financialn servicesn s
uchn asn banking,n investment n banking,n brokerage,n etc.?
I. Regulatoryn changesn allowingn institutionsn ton offern moren services
II. Technologicaln improvementsn reducingn then cost n of n providingn financialn services
III. Increasingn competitionn fromn fulln servicen globaln financialn institutions
IV. Reductionn inn then need n ton managen riskn at n financialn institutions
A. I n only
B. II n and n III n only
A+ Pagen2
,CreatednBy:nTestnBank
C. I,n II,n and n III n only
D. I,n II,n and n IVn only
E. I,n II,n III,n and n IVn Figuren 1-1
IBMn createsn and nsellsn additionaln stockntontheninvestment n banker,nMorgann Stanley.nMorgann Stanleyn
thenn resellsn then issuen ton then U.S.n public.
10. Thisn transactionn isn ann examplen of n a(n)
A. primaryn market n transaction
B. asset n transformationn byn Morgann Stanley
C. moneyn market n transaction
D. foreignn exchangen transaction
E. forward n transaction
11. Morgann Stanleyn isn actingn asn a(n)n A.asset n transformer
B. asset n broker
C. government n regulator
D. foreignn servicen representative
12. A n corporationn seekingnton selln newn equityn securitiesn tonthen publicnfornthenfirst ntimen inn ordernt
on raisen cashn forn capitaln investmentn wouldn mostn likelynA.conductn annIPOn withn then assistancen ofn ann in
vestment n banker
B. engagen inn an secondaryn market n salen of n equity
C. conduct n an privaten placement n ton an largen numbern of n potentialn buyers
D. placen ann ad n inn then Walln Street n Journaln solicitingn retailn suppliersn of n funds
E. nonen of n then above
A+ Pagen3
, CreatednBy:nTestnBank
13. Then largest n capitaln market n securityn outstandingn inn 2010n measured n byn market n valuen was
A. securitized n mortgages
B. corporaten bonds
C. municipaln bonds
D. Treasuryn bonds
E. corporaten stocks
14. Then diagramn below n isn an diagramn of n then A.secondaryn markets
B. primaryn markets
C. moneyn markets
D. derivativesn markets
E. commoditiesn markets
15. and
allow n an financialn intermediarynton offern safe,nliquid nliabilitiesn suchn asn deposits
n whilen investingn then depositors’n moneyn inn riskier,n illiquid n assets.
A. Diversification;n highn equityn returns
B. Pricen risk;n collateral
C. Freen riders;n regulations
D. Monitoring;n diversification
E. Primarynmarkets;n foreignn exchangen markets
16. Depositoryninstitutionsn include:n A.banks
A+ Pagen4
