Financial Markets and Institutions Test Bank - Full
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RoglegofgFinagncgiaglgMagrkegtsgagndg Institutiogns
1. Financialgmarketgparticipantsgwhogprovidegfundsgaregcalled
A) deficitgunits.
B) surplusgunits.
C) primarygunits.
D) secondarygunits.
2. Thegmaingprovider(s)gofgfundsgtogthegU.S.gTreasurygisg(are)
A) householdsgandgbusinesses.
B) foreigngfinancialginstitutions.
C) thegFederalgReservegSystem.
D) foreigngnonfinancialgsectors.
3. Theglargestgdeficitgunitgisg(are)
A) householdsgandgbusinesses.
B) foreigngfinancialginstitutions.
C) thegU.S.gTreasury.
D) foreigngnonfinancialgsectors.
4. Thosegfinancialgmarketsgthatgfacilitategthegflowgofgshort-termgfundsgaregknowngas
A) moneygmarkets.
B) capitalgmarkets.
C) primarygmarkets.
D) secondarygmarkets.
5. Fundsgaregprovidedgtogtheginitialgissuergofgsecuritiesgingthe
A) secondarygmarket.
B) primarygmarket.
C) deficitgmarket.
D) surplusgmarket.
6. Whichgofgthegfollowinggisgagcapitalgmarketginstrument?
A) agsix-monthgCD
B) agthree-monthgTreasurygbill
C) agten-yeargbond
D) angagreementgforgagbankgtogloangfundsgdirectlygtogagcompanygforgninegmonths.
7. Whichgofgthegfollowinggisgagmoneygmarketgsecurity?
A) Treasurygnote
B) municipalgbond
C) mortgage
D) commercialgpaper
8. ThegmostgcommonginvestorsgingFederalgfundsgare
©g2010gCengagegLearnig.gAllgRightsgReserved.gThisgeditiongisgintendedgforgusegoutsidegofgthegU.S.gonly,gwithgc hatgmaygbegdifferentgfro
n ontentgtg ion.gMaygnotgbegscanned,gcopied,gduplicated,gorgpostedgtogagpubliclygaccessible mg olegorgingpart.
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A) households.
B) depositoryginstitutions.
C) firms.
D) governmentgagencies.
9. Equitygsecuritiesghavegag expectedgreturngthangmostglong-
termgdebtgsecurities,gandgtheygexhibitgag degreegofgrisk.
A) higher;ghigher
B) lower;glower
C) lower;ghigher
D) higher;glower
10. Moneygmarketgsecuritiesggenerallyghaveg
.g Capitalgmarketgsecuritiesgaregtypicallygexpectedgtoghavega .
A) lessgliquidity;ghighergannualizedgreturn
B) moregliquidity;glowergannualizedgreturn
C) lessgliquidity;glowergannualizedgreturn
D) moregliquidity;ghighergannualizedgreturn
11. Ifgsecuritygpricesgfullygreflectgallgavailableginformation,gthegmarketsgforgthesegsecuritiesgare
A) efficient.
B) primary.
C) overvalued.
D) undervalued.
12. Ifgmarketsgare
,ginvestorsgcouldgusegavailableginformationgignoredgbygthegmarketgtogea
rngabnormallyghighgreturns.
A) perfect
B) active
C) inefficient
D) ingequilibrium
13. Ifg financialgmarketsgaregefficient,gthisgimpliesgthatginvestorsgcangignoregthegvariousginvestme
ntginstrumentsgavailable.
➔g False
14. ThegSecuritiesgActgofg1933
A) requiredgcompletegdisclosuregofgrelevantgfinancialginformationgforgpubliclygofferedgsecuriti
esgingthegprimarygmarket.
B) declaredgtradinggstrategiesgtogmanipulategthegpricesgofgpublicgsecondarygsecuritiesgillegal.
C) declaredgmisleadinggfinancialgstatementsgforgpublicgprimarygsecuritiesgillegal.
D) requiredgcompletegdisclosuregofgrelevantgfinancialginformationgforgsecuritiesgtradedgingt
hegsecondarygmarket.
E) allgofgthegabove
15. ThegSecuritiesgExchangegCommissiong(SEC)gwasgestablishedgbygthe
A) FederalgReservegAct.
B) McFaddengAct.
C) SecuritiesgExchangegActgofg1934.
©g2010gCengagegLearning.gAllgRightsgReserved.gThisgeditiongisgintendedgforgusegoutsidegofgthegU.S.gonly,gwithgcontentgthatgmaygbegdiff
erentgfrom thegU.S.gEdition.gMaygnotgbegscanned,gcopied,gduplicated,gorgpostedgtogagpubliclygaccessiblegwebsite,gingwholegor
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, RolegofgFinancialgMarketsgandgInstitutionsg❖g3
D) Glass-SteagallgAct.
E) nonegofgthegabove
16. Commongstockgisgangexamplegofga(n)
A) debtgsecurity.
B) moneygmarketgsecurity.
C) equitygsecurity.
D) AgandgB
17. Ifg financialgmarketsgwereg
,gallginformationgaboutganygsecuritiesgforgsalegingprimarygandgsecondarygmarketsgwouldgbegc
ontinuouslygandgfreelygavailablegtoginvestors.
A) efficient
B) inefficient
C) perfect
D) imperfect
18. Thegtypicalgrolegofgagsecuritiesgfirmgingagpublicgofferinggofgsecuritiesgisgto
A) purchasegthegentiregissuegforgitsgownginvestment.
B) placegthegentiregissuegwithgagsingleglargeginvestor.
C) spreadgthegissuegacrossgseveralginvestorsguntilgthegentiregissuegisgsold.
D) providegallglargeginvestorsgwithgloansgsogthatgtheygcanginvestgingthegoffering.
19. Withoutgthegparticipationgofgfinancialgintermediariesgingfinancialgmarketgtransactions,
A) informationgandgtransactiongcostsgwouldgbeglower.
B) transactiongcostsgwouldgbeghighergbutginformationgcostsgwouldgbegunchanged.
C) informationgcostsgwouldgbeghighergbutgtransactiongcostsgwouldgbegunchanged.
D) informationgandgtransactiongcostsgwouldgbeghigher.
20. Whichgofgthegfollowinggisgmostglikelygtogbegdescribedgasgagdepositoryginstitution?
A) financegcompanies
B) securitiesgfirms
C) creditgunions
D) pensiongfunds
E) insurancegcompanies
21. Ingaggregate,g aregthegmostgdominantgdepositoryginstitution.
A) commercialgbanks
B) savingsgbanks
C) creditgunions
D) S&Ls
22. Whichgofgthegfollowinggisgagnondepositorygfinancialginstitution?
A) savingsgbanks
B) commercialgbanks
C) savingsgandgloangassociations
D) mutualgfunds
23. Whichgofgthegfollowinggdistinguishesgcreditgunionsgfromgcommercialgbanksgandgsavingsginstitutions?
A) Creditgunionsgaregnon-profit
©g2010gCengagegLearnig.gAllgRightsgReserved.gThisgeditiongisgintendedgforgusegoutsidegofgthegU.S.gonly,gwithgc hatgmaygbegdifferentgfro
n ontentgtg ion.gMaygnotgbegscanned,gcopied,gduplicated,gorgpostedgtogagpubliclygaccessible mg olegorgingpart.
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thegU.S.gEditgwebsite,gingwh
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g g g g g g g
trắcgnghiệmg(ĐạighọcgĐàgNẵng)
StuDocugisgnotgsponsoredgorgendorsedgbyganygcollegegorguniversity
Downloadedgbygnottarkgallksg()
,Chapter 1 g
RoglegofgFinagncgiaglgMagrkegtsgagndg Institutiogns
1. Financialgmarketgparticipantsgwhogprovidegfundsgaregcalled
A) deficitgunits.
B) surplusgunits.
C) primarygunits.
D) secondarygunits.
2. Thegmaingprovider(s)gofgfundsgtogthegU.S.gTreasurygisg(are)
A) householdsgandgbusinesses.
B) foreigngfinancialginstitutions.
C) thegFederalgReservegSystem.
D) foreigngnonfinancialgsectors.
3. Theglargestgdeficitgunitgisg(are)
A) householdsgandgbusinesses.
B) foreigngfinancialginstitutions.
C) thegU.S.gTreasury.
D) foreigngnonfinancialgsectors.
4. Thosegfinancialgmarketsgthatgfacilitategthegflowgofgshort-termgfundsgaregknowngas
A) moneygmarkets.
B) capitalgmarkets.
C) primarygmarkets.
D) secondarygmarkets.
5. Fundsgaregprovidedgtogtheginitialgissuergofgsecuritiesgingthe
A) secondarygmarket.
B) primarygmarket.
C) deficitgmarket.
D) surplusgmarket.
6. Whichgofgthegfollowinggisgagcapitalgmarketginstrument?
A) agsix-monthgCD
B) agthree-monthgTreasurygbill
C) agten-yeargbond
D) angagreementgforgagbankgtogloangfundsgdirectlygtogagcompanygforgninegmonths.
7. Whichgofgthegfollowinggisgagmoneygmarketgsecurity?
A) Treasurygnote
B) municipalgbond
C) mortgage
D) commercialgpaper
8. ThegmostgcommonginvestorsgingFederalgfundsgare
©g2010gCengagegLearnig.gAllgRightsgReserved.gThisgeditiongisgintendedgforgusegoutsidegofgthegU.S.gonly,gwithgc hatgmaygbegdifferentgfro
n ontentgtg ion.gMaygnotgbegscanned,gcopied,gduplicated,gorgpostedgtogagpubliclygaccessible mg olegorgingpart.
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thegU.S.gEditgwebsite,gingwh
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, RolegofgFinancialgMarketsgandgInstitutionsg❖g2
A) households.
B) depositoryginstitutions.
C) firms.
D) governmentgagencies.
9. Equitygsecuritiesghavegag expectedgreturngthangmostglong-
termgdebtgsecurities,gandgtheygexhibitgag degreegofgrisk.
A) higher;ghigher
B) lower;glower
C) lower;ghigher
D) higher;glower
10. Moneygmarketgsecuritiesggenerallyghaveg
.g Capitalgmarketgsecuritiesgaregtypicallygexpectedgtoghavega .
A) lessgliquidity;ghighergannualizedgreturn
B) moregliquidity;glowergannualizedgreturn
C) lessgliquidity;glowergannualizedgreturn
D) moregliquidity;ghighergannualizedgreturn
11. Ifgsecuritygpricesgfullygreflectgallgavailableginformation,gthegmarketsgforgthesegsecuritiesgare
A) efficient.
B) primary.
C) overvalued.
D) undervalued.
12. Ifgmarketsgare
,ginvestorsgcouldgusegavailableginformationgignoredgbygthegmarketgtogea
rngabnormallyghighgreturns.
A) perfect
B) active
C) inefficient
D) ingequilibrium
13. Ifg financialgmarketsgaregefficient,gthisgimpliesgthatginvestorsgcangignoregthegvariousginvestme
ntginstrumentsgavailable.
➔g False
14. ThegSecuritiesgActgofg1933
A) requiredgcompletegdisclosuregofgrelevantgfinancialginformationgforgpubliclygofferedgsecuriti
esgingthegprimarygmarket.
B) declaredgtradinggstrategiesgtogmanipulategthegpricesgofgpublicgsecondarygsecuritiesgillegal.
C) declaredgmisleadinggfinancialgstatementsgforgpublicgprimarygsecuritiesgillegal.
D) requiredgcompletegdisclosuregofgrelevantgfinancialginformationgforgsecuritiesgtradedgingt
hegsecondarygmarket.
E) allgofgthegabove
15. ThegSecuritiesgExchangegCommissiong(SEC)gwasgestablishedgbygthe
A) FederalgReservegAct.
B) McFaddengAct.
C) SecuritiesgExchangegActgofg1934.
©g2010gCengagegLearning.gAllgRightsgReserved.gThisgeditiongisgintendedgforgusegoutsidegofgthegU.S.gonly,gwithgcontentgthatgmaygbegdiff
erentgfrom thegU.S.gEdition.gMaygnotgbegscanned,gcopied,gduplicated,gorgpostedgtogagpubliclygaccessiblegwebsite,gingwholegor
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, RolegofgFinancialgMarketsgandgInstitutionsg❖g3
D) Glass-SteagallgAct.
E) nonegofgthegabove
16. Commongstockgisgangexamplegofga(n)
A) debtgsecurity.
B) moneygmarketgsecurity.
C) equitygsecurity.
D) AgandgB
17. Ifg financialgmarketsgwereg
,gallginformationgaboutganygsecuritiesgforgsalegingprimarygandgsecondarygmarketsgwouldgbegc
ontinuouslygandgfreelygavailablegtoginvestors.
A) efficient
B) inefficient
C) perfect
D) imperfect
18. Thegtypicalgrolegofgagsecuritiesgfirmgingagpublicgofferinggofgsecuritiesgisgto
A) purchasegthegentiregissuegforgitsgownginvestment.
B) placegthegentiregissuegwithgagsingleglargeginvestor.
C) spreadgthegissuegacrossgseveralginvestorsguntilgthegentiregissuegisgsold.
D) providegallglargeginvestorsgwithgloansgsogthatgtheygcanginvestgingthegoffering.
19. Withoutgthegparticipationgofgfinancialgintermediariesgingfinancialgmarketgtransactions,
A) informationgandgtransactiongcostsgwouldgbeglower.
B) transactiongcostsgwouldgbeghighergbutginformationgcostsgwouldgbegunchanged.
C) informationgcostsgwouldgbeghighergbutgtransactiongcostsgwouldgbegunchanged.
D) informationgandgtransactiongcostsgwouldgbeghigher.
20. Whichgofgthegfollowinggisgmostglikelygtogbegdescribedgasgagdepositoryginstitution?
A) financegcompanies
B) securitiesgfirms
C) creditgunions
D) pensiongfunds
E) insurancegcompanies
21. Ingaggregate,g aregthegmostgdominantgdepositoryginstitution.
A) commercialgbanks
B) savingsgbanks
C) creditgunions
D) S&Ls
22. Whichgofgthegfollowinggisgagnondepositorygfinancialginstitution?
A) savingsgbanks
B) commercialgbanks
C) savingsgandgloangassociations
D) mutualgfunds
23. Whichgofgthegfollowinggdistinguishesgcreditgunionsgfromgcommercialgbanksgandgsavingsginstitutions?
A) Creditgunionsgaregnon-profit
©g2010gCengagegLearnig.gAllgRightsgReserved.gThisgeditiongisgintendedgforgusegoutsidegofgthegU.S.gonly,gwithgc hatgmaygbegdifferentgfro
n ontentgtg ion.gMaygnotgbegscanned,gcopied,gduplicated,gorgpostedgtogagpubliclygaccessible mg olegorgingpart.
Downloadedgbygnottarkgallksg(
thegU.S.gEditgwebsite,gingwh
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