Test_Bank_Financial_Markets_and_Institutions_8th_Ed_Ch1
-25_Complete_Walden_University
,
,Chapter 1
Student name: _
1) What factors are encouraging �nancial institutions to o�er overlapping
�nancial servicessuch as banking, investment banking, brokerage, etc.? 1.I.
Regulatory changes allowing institutions to o�er more services
2.II. Technological improvements reducing the cost of providing �nancial
services
3.III. Increasing competition from full-service global �nancial institutions
4.IV. Reduction in the need to manage risk at �nancial institutions
A) I only
B) II and III only
C) I, II, and III only
D) I, II, and IV only
E) I, II, III, and IV
2) IBM creates and sells additional stock to the investment banker
Morgan Stanley. Morgan Stanley then resells the issue to the U.S. public
through its mutual funds.
This transaction is an example of a(n):
A) primary market transaction.
B) asset transformation by Morgan Stanley.
C) money market transaction.
D) foreign exchange transaction.
E) forward transaction.
, 3) IBM creates and sells additional stock to the investment banker
Morgan Stanley. Morgan Stanley then resells the issue to the U.S. public
through its mutual funds.
Morgan Stanley is acting as a(n)
A) asset transformer.
B) asset broker.
C) government regulator.
D) foreign service representative.
E) derivatives trader.
4) A corporation seeking to sell new equity securities to the public for the
�rst time in orderto raise cash for capital investment would most likely:
A) conduct an IPO with the assistance of an investment banker.
B) engage in a secondary market sale of equity.
C) conduct a private placement to a large number of potential buyers.
D) place an ad in the Wall Street Journal soliciting retail suppliers of funds.
E) issue bonds with the assistance of a dealer.
5) The largest capital market security outstanding in 2019 measured by market
value was:
A) securitized mortgages.
B) corporate bonds.
C) municipal bonds.
D) Treasury bonds.
E) corporate stocks.
-25_Complete_Walden_University
,
,Chapter 1
Student name: _
1) What factors are encouraging �nancial institutions to o�er overlapping
�nancial servicessuch as banking, investment banking, brokerage, etc.? 1.I.
Regulatory changes allowing institutions to o�er more services
2.II. Technological improvements reducing the cost of providing �nancial
services
3.III. Increasing competition from full-service global �nancial institutions
4.IV. Reduction in the need to manage risk at �nancial institutions
A) I only
B) II and III only
C) I, II, and III only
D) I, II, and IV only
E) I, II, III, and IV
2) IBM creates and sells additional stock to the investment banker
Morgan Stanley. Morgan Stanley then resells the issue to the U.S. public
through its mutual funds.
This transaction is an example of a(n):
A) primary market transaction.
B) asset transformation by Morgan Stanley.
C) money market transaction.
D) foreign exchange transaction.
E) forward transaction.
, 3) IBM creates and sells additional stock to the investment banker
Morgan Stanley. Morgan Stanley then resells the issue to the U.S. public
through its mutual funds.
Morgan Stanley is acting as a(n)
A) asset transformer.
B) asset broker.
C) government regulator.
D) foreign service representative.
E) derivatives trader.
4) A corporation seeking to sell new equity securities to the public for the
�rst time in orderto raise cash for capital investment would most likely:
A) conduct an IPO with the assistance of an investment banker.
B) engage in a secondary market sale of equity.
C) conduct a private placement to a large number of potential buyers.
D) place an ad in the Wall Street Journal soliciting retail suppliers of funds.
E) issue bonds with the assistance of a dealer.
5) The largest capital market security outstanding in 2019 measured by market
value was:
A) securitized mortgages.
B) corporate bonds.
C) municipal bonds.
D) Treasury bonds.
E) corporate stocks.
